Actual Cash Value
The amount equal to the replacement value of damaged property minus an allowance for depreciation (See also Replacement Cost Coverage).
Bodily Injury Liability Insurance
Insurance that covers you should you injure or kill someone in an auto
Coverage that pays for damage to your vehicle caused by collision with another auto or object.
Coverage that pays for damage to an insured’s vehicle caused by incidents other than collision, including fire, severe weather, vandalism and theft. Also called Other-Than-Collision coverage.
The portion of a claim paid by the insured prior to payment by an
insurance company. The deductible is set forth and agreed upon in the policy.
A deduction in premium given to an insured for actions or items that lower risk.
A form attached to an insurance policy that changes the policy’s coverage, terms or conditions. An endorsement could expand or reduce the amount of coverage you have.
A policy that provides property insurance coverage for your
valuables and protects your valuables against perils not covered by your
A deliberate act committed by or against insurance companies for financial gain. Examples of fraud include intentional actions to create an accident, injury or incident that would be covered under an insurance policy or when a policyholder exaggerates a claim or provides false, incomplete or missing information to the insurance company.
Coverage that pays the difference between what you owe on a car
and what your insurer pays if your car is totaled in an accident.
The insurance that protects your home and possessions in case of
damage or destruction.
Compensation to a victim for a loss.
A device by which a company assumes the risk of potential loss in
exchange for a premium paid by an individual or entity.
Insurance that covers damages for which you are responsible (see
Bodily Injury Liability
Property Damage Liability
Limit of Liability
The maximum amount of damages that the insurer is responsible for as specified in your policy.
Claims made by individuals in a particular underwriting class.
The amount of money a buyer on the open market would pay to purchase your home.
Medical Payments Coverage
Coverage that pays medical bills for injuries to you or your passengers if in an auto accident.
Coverage that allows a claimant to collect from his own insurance company in the case of an accident, regardless of who was responsible for damages. Not offered in all states. Maryland, New Jersey and Pennsylvania are no-fault states. North Carolina, Tennessee and Virginia are not.
Personal Injury Protection (PIP) Endorsement
Endorsement to an auto insurance policy describing the no-fault benefits that are provided.
The price paid by an insured for insurance coverage for a set period of time.
Property Damage Liability Insurance
Insurance that protects you should you damage another person’s property
in an accident.
The cost of a unit of insurance.
The process of assigning specific costs for specific coverages for
an underwriting group.
A homeowner’s policy adapted to the needs of individuals who rent. Also called Tenant's Insurance.
Replacement Cost Coverage
Coverage where the insured receives an amount equal to the replacement value of damaged property. Replacement Cost Coverage is usually purchased for an additional premium.
An additional premium charge for increased level of risk, such as a violation, license suspension or accident.
A policy that provides coverage for losses above the liability
coverage offered under other policies.
Underinsured Motorist Coverage
Coverage that protects you if you are in an accident in which
damages exceed the coverage held by an at-fault motorist.
The process by which a company identifies risks and classifies
them so that appropriate rates can be set.
An employee of the insurance company who has training and
experience in identifying classes of risk and determining appropriate rates.
Uninsured Motorist Coverage
Coverage that protects you should you be in an accident in which an uninsured driver is at fault.