This list of definitions
is designed to help make your insurance
decisions easier:
Actual Cash Value
Type of property insurance whereby the insurance company settles the
claim by subtracting the depreciation of the property from its
replacement cost.
Collision Insurance
Coverage for your automobile should you collide with another vehicle or
object (other than an animal).
Comprehensive Insurance
Coverage for your auto for fire, theft, vandalism, glass breakage,
flood, hitting an animal, etc. The term Other than Collision is also
used.
Declaration
This personalizes the policy for the insured, showing the name,
address, what is covered, the limits of the policy, premium cost, policy
number and the policy period. In other words, the who, what, where and
how of the policy.
Deductibles
The
portion of the loss considered the responsibility of the insured.
Exclusion
Certain items (perils, people, etc.) not covered under the terms of the
policy.
First Party Benefits
Benefits to you, the insured, on an auto policy.
First Named Insured
The person who is named first on the insurance policy declarations.
This person is responsible for maintaining the policy provisions, such
as paying the premium, reporting losses, securing the property in the
event of a loss, etc.
Insured
Who is covered under the policy. Certain types of insurance also name
the spouse, resident relatives and minors in the custody of the named
insured as “insured’s” under the policy.
Insurer
The Company who issued the policy.
Limits of Liability
The maximum amount of coverage listed on the policy. This is the most
the company will pay on your behalf.
Market Value
Oftentimes confused with the replacement cost on an insurance policy,
the market value is the resale value, not the cost to rebuild, repair or
replace.
Peril
Causes of Loss set forth in the policy.
Property Damage
Physical property that has been damaged.
Replacement Cost
The amount needed to replace damaged property at today’s cost (without
depreciation).
Surcharge
An Insurance Company may apply an additional charge to a policy for
losses paid by the company.
Tort
As you decide which liability coverage you want under your auto policy,
you will be asked whether you want to elect “limited tort” or “full
tort.” To learn more about this important decision, review our
Limited Tort vs. Full Tort
page.
Underinsured Motorist Insurance
Uninsured motorists protection is insurance coverage you carry on your
policy that protects only you and your family if you or they are injured
by a negligent driver who does not have enough bodily injury liability
insurance to cover your claims and whose policy limits are less than
your underinsured motorist coverage limits.
Uninsured Motorist Insurance
Uninsured motorists protection is insurance coverage you carry on your
policy that protects only you and your family if a negligent driver who
fails to have any insurance coverage injures you or them.
Vacancy
The absence of both people and furniture from the insured home or
building. Vacancy will affect a claim settlement if the building is
vacant beyond 30 days for personal policies and 60 days for commercial
policies. |
