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Insurance Glossary

Disclaimer: These definitions are based on a general use of the term and are provided “as-is”. Though we do our best to keep info accurate and up to date, we do not guarantee accuracy, nor do we accept any liability for the website being accurate.

 A | B | C | D | E | F | L | M | P | R | S | U | V

A

Actual Cash Value (ACV) – A property valuation method in which depreciation is subtracted from replacement cost.

Adjuster – The person who investigates claims and estimates damages.

B

Beneficiary – The designated recipient of payments owed on a contract such as life insurance.

Bodily Injury – Injury to a person.

Business Interruption – Loss of income resulting from damage to a business.

Business Owners Policy (BOP) – A commercial policy package that often includes coverage for property, liability, and more.

C

Campsite Liability – See Vacation Liability

Casualty Insurance – Liability insurance that covers negligent acts and omissions like workers compensation, malpractice, and more.

Claim – A request for payment due to a covered loss.

Coinsurance – In property insurance, it is a clause requiring the policyholder to insure for a specified amount of the property value (usually 80%) or the policyholder will be responsible for a share of the loss. In medical insurance, it refers to the percentage of each claim the policyholder will be responsible for paying.

Collision Coverage – Pays for physical damage to a vehicle resulting from a collision. Collisions coverage typically covers things like hitting another car or object.

Comprehensive Coverage – In regards to auto insurance, comprehensive coverage pays for physical damage to a vehicle that is not from a collision. Comprehensive covers things like weather damage and vandalism.

D

Declarations – A summation of your insurance policy. A declarations page typically includes insured names, contract period, coverage, and more.

E

Endorsement – A change made to an insurance contract. Replacing a vehicle is an example of an endorsement.

F

Full Coverage – Although not an official coverage, this generally refers to auto insurance which combines liability coverage, collision coverage, and comprehensive coverage. Learn more

L

Liability –  When you are at fault for damages to another party, you are said to be “liable” for the damage. If, for example, you in an at-fault car accident, your insurance will compensate the other party from your liability coverage.

M

Medical Payments – Payments for medical expenses regardless of fault.

P

Personal Injury Protection (PIP) – First party coverage for medical expenses and loss of income. PIP is mandated in the state of Minnesota and is sometimes referred to as no-fault coverage.

Personal Property Coverage – Coverage to your personal effects such as clothing, furniture, electronics, etc.

Physical Damage – Damage to your vehicle like hail damage, vandalism, or damage from a car accident.

Premium – The amount charged for insurance coverage.

R

Rental Reimbursement – Pays to rent a vehicle if your vehicle is involved in a covered loss.

Replacement Cost – The cost to replace property without a reduction for depreciation.

Roadside Assistance – A service that is often offered by insurance companies to assist you if your vehicle is disabled. It often covers towing expenses, jump starts, or fuel delivery.

S

Scheduled Property – Certain classes of property which have a defined limit of coverage must be scheduled on the policy contract in order to extend coverage beyond the limit. For example, jewelry often has a limit of coverage well below the cost to replace the item. In order to fully insure the item, it must be “scheduled” on the insurance policy and an additional premium is charged.

Subrogation – When an insurer, on behalf of the insured, sues a third party to recover payment for losses to the insured.

U

Underinsured Motorist Coverage – Provides coverage if you’re in an accident with another driver who is at-fault and they do not have enough liability insurance to cover the damages.

Uninsured Motorist Coverage – Provides coverage if you’re in an accident with another driver who is at-fault and they do not have any liability insurance.

V

Vacation Liability – Liability coverage if someone (not related to you) is hurt at your campsite or RV while it’s parked.

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