Insurance Glossary
Definitions for Florida Policyholders
Act of God / Natural Disaster
An event outside human control, such as hurricanes, tornadoes, or lightning.
Actual Cash Value (ACV)
The value of an insured item after accounting for depreciation.
Adjuster
A claims professional who investigates, evaluates, and settles insurance claims.
Additional Living Expenses (ALE) / Loss of Use
Coverage for extra living costs if a home or rental becomes uninhabitable due to a covered loss.
Agent
A licensed individual who sells and services insurance policies on behalf of an insurance company.
Bodily Injury Liability
Coverage for medical expenses and legal costs if you injure someone in an accident.
Binder
A temporary insurance agreement providing coverage until a formal policy is issued.
Claim
A formal request for payment from an insurance company for a covered loss.
Coverage Limit
The maximum amount an insurer will pay for a covered loss.
Declarations Page (Dec Page)
The section of an insurance policy summarizing coverage, limits, deductibles, and policy period.
Deductible
The amount the policyholder must pay out of pocket before insurance coverage applies.
Effective Date
The date when an insurance policy or coverage begins.
Endorsement
A change or addition to an insurance policy that modifies coverage or terms.
Excess Liability
Additional liability coverage above the limits of primary insurance policies.
Exclusion
A condition, event, or item that is not covered by an insurance policy.
Expiration Date
The date when an insurance policy or coverage ends.
Flood Zone
A FEMA-designated area that indicates the level of flood risk and insurance requirements.
Grace Period
The time allowed for payment of a premium after the due date without losing coverage.
Hazard
A condition or situation that increases the likelihood or severity of a loss.
Hurricane Deductible
A separate deductible that applies specifically to damage caused by a hurricane.
Insurable Interest
A financial or ownership interest in property or life that allows a person to purchase insurance.
Liability Coverage
Coverage that protects against legal responsibility for injury or property damage to others.
Loss Payee
An individual or entity that has a financial interest in the insured property.
Mortgagee Clause
A policy provision that protects the mortgage lender’s financial interest in the property.
Named Peril
Specific events explicitly listed in a policy as covered.
Ordinance or Law Coverage
Coverage for costs to repair or rebuild property in compliance with current building codes.
Open Peril
Coverage for any loss not specifically excluded in the policy.
Peril
The specific cause of loss or damage covered by an insurance policy.
Policyholder
The individual or entity that owns an insurance policy.
Policy Term
The period during which an insurance policy is in effect.
Premium
The cost of an insurance policy, typically paid monthly, quarterly, or annually.
Replacement Cost
Coverage that pays to repair or replace an insured item without deduction for depreciation.
Scheduled Personal Property
Additional coverage for high-value items exceeding standard policy limits.
Total Loss
A claim situation where the cost to repair property exceeds its insured value.
Underwriting
The process of evaluating risk to determine coverage terms and premiums.
Waiting Period
The time between the purchase of a policy or occurrence of a loss and when coverage begins.