Glossary

The value of your property, based on the current cost to replace the damaged items minus any applicable depreciation. Also see “replacement cost.”

Reimburses the policyholder for the cost(s) above and beyond what they normally incur. This can include temporary housing, increased out-of- pocket food expenses, increased utilities, and other essential living expenses, if the home is damaged by a covered peril that makes the home temporarily deemed “unfit to live in.” Policies cap the amount of ALE payable to the Coverage Limit listed on the Declarations page, of the policy

An individual employed by an insurer to evaluate losses and settle policyholder claims. Also see “public insurance adjuster.”

A person who sells insurance policies.

A temporary insurance contract that provides proof of coverage until you receive a permanent policy

Termination of an insurance policy by the company or insured before the renewal date.

A policyholder’s request for reimbursement from an insurance company under a home insurance policy for a loss to property.

A person who makes an insurance claim.

A summary of information about an insurance company, including its license status, financial data, complaint history, and a history of regulatory action.

The page in a policy that shows the name and address of the insurer, the period of time a policy is in force, the amount of the premium, and the amount of coverage, as well as coverage limits.

The amount the insured (you – the customer) are responsible for paying in a reported claim loss.

Decrease in the value of property over time due to use or wear and tear.

The date on which an insurance policy becomes effective.

A written agreement attached to a policy expanding or limiting the benefits otherwise payable under the policy. Also called a “rider.”

A provision in an insurance policy that denies coverage for certain perils, people, property, or locations.

The date on which an insurance policy expires.

A claim filed by an insured against his or her own insurance policy.

A person who charges a fee to an insurance company to adjust the company’s claim.

Automatically adjusts your home insurance policy limits to account for increases in the costs to repair or rebuild a property.

Any financial interest a person has in the property or person insured. In life insurance, a person´s or party´s interest – financial or emotional – in the continuing life of the insured.

The policyholder – the person(s) protected in case of a loss or claim.

The insurance company.

The termination of an insurance policy because a renewal premium is not paid by the end of the grace period.

The amount an insurance company pays on a claim.

Refers to the number of insurance claims previously filed by a policyholder. A company will consider loss history when underwriting a new policy or considering a renewal of an existing policy. Companies view loss history as an indication of the likelihood that an insured will file a claim in the future.

The current value of your home, including the price of land.

A significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application.

A decision by an insurance company not to renew a policy.

A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the policy. An all-risk policy covers all causes of loss except those specifically excluded.

All tangible property (other than land) that is either temporary or movable in some way, such as furniture, jewelry, electronics, etc.

The contract issued by the insurance company to the insured.

The person or party who owns an individual insurance policy. This person may be the insured, the beneficiary, or another person. The policy owner usually is the one who pays the premium and is the only person who may make changes to a policy.

The period a policy is in force, from the beginning or effective date to the expiration date.

The amount paid by an insured to an insurance company to obtain or maintain an insurance policy.

Physical damage to property.

An individual employed by a policyholder to negotiate a claim with the insurance company in exchange for a percentage of the claim settlement. Public insurance adjusters must be licensed by Florida Dept. of Financial Services and Insurance.

An amount of money returned to the policyholder for overpayment of premium or if the policyholder is due unearned premium.

The process by which a life insurance company puts a policy back in force after it lapsed because of nonpayment of renewal premiums.

Continuation of a policy after its expiration date.

A form of insurance that covers a policyholder’s belongings against perils. It also provides personal liability coverage and additional living expenses. Possessions can be covered for their replacement cost or the actual cash value, which includes depreciation.

Pays the dollar amount needed to replace the structure or damaged personal property without deducting for depreciation but limited by the policy’s maximum dollar amount.

The premium returned to an insured for canceling or amending a policy.

A written agreement attached to the policy expanding or limiting the benefits otherwise payable under the policy. Also called an “endorsement.”

Employee of the insurance company’s claims department.

An extra charge added to your premium by an insurance company.

An organization that performs managerial and clerical functions related to an employee benefit insurance plan by an individual or committee that is not an original party to the benefit plan.

A claim filed against another person’s insurance policy.

The person who reviews an application for insurance and decides if the applicant is acceptable and at what premium rate.

The process an insurance company uses to decide whether to accept or reject an application for a policy.