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Frequently Used Insurance terms

General Insurance Terms

Policyholder

The person or entity who owns an insurance policy.

Premium

The amount paid (monthly, quarterly, annually) for an insurance policy.

Claim

The amount the policyholder must pay out-of-pocket before the insurance company begins to cover a claim.

Endorsement (Rider)

A modification or addition to an existing insurance policy to provide additional coverage or change terms.

Exclusion

Specific conditions or circumstances that are not covered under an insurance policy.

Limit of Liability

The maximum amount the insurance company will pay for a covered loss.

Underwriting

The process of evaluating risk and determining whether to issue a policy and at what premium.

Adjuster

A professional who evaluates insurance claims to determine the extent of the insurer’s liability.

Auto Insurance Terms

Collision Coverage

Pays for damage to your vehicle resulting from a collision, regardless of fault.

Comprehensive Coverage

Covers damage to your vehicle caused by non-collision events, such as theft, fire, or weather.

Liability Insurance

Covers damages or injuries you cause to others in an accident.

Personal Injury Protection (PIP)

Coverage for medical expenses and lost wages for you and your passengers, regardless of fault.

Uninsured/Underinsured Motorist Coverage

Protects you if you’re in an accident caused by a driver with little or no insurance.

Home Insurance Terms

Dwelling Coverage

Covers the physical structure of your home against covered perils like fire or windstorms.

Personal Property Coverage

Protects your belongings, such as furniture and clothing, against covered risks.

Liability Coverage

Covers legal expenses and damages if someone is injured on your property.

Loss of Use Coverage

Pays for additional living expenses if you can’t live in your home due to a covered loss.

Flood Insurance

Separate coverage for damages caused by flooding, not included in standard policies.

Life Insurance Terms

Term Life Insurance

Provides coverage for a specific period, such as 10, 20, or 30 years.

Whole Life Insurance

Permanent life insurance with coverage for the policyholder’s lifetime and a cash value component.

Beneficiary

The person or entity designated to receive the death benefit from a life insurance policy.

Death Benefit

The money paid to beneficiaries upon the insured’s death.

Cash Value

The savings component of a permanent life insurance policy that can accumulate over time.

Health Insurance Terms

Copayment (Copay)

A fixed amount you pay for a covered medical service at the time of care.

Coinsurance

The percentage of medical expenses you pay after meeting your deductible.

Out-of-Pocket Maximum

The maximum amount you pay for covered services in a policy period.

Network

The group of healthcare providers contracted with an insurance company to offer services at reduced rates.

Pre-existing Condition

A medical condition that existed before the start of a policy.

Business Insurance Terms

General Liability Insurance

Covers businesses against claims of bodily injury, property damage, and personal injury.

Professional Liability Insurance (Errors & Omissions)

Protects against claims of negligence or mistakes in professional services.

Business Interruption Insurance

Covers lost income and operating expenses if a business is forced to close temporarily due to a covered event.

Workers’ Compensation Insurance

Provides coverage for medical expenses and lost wages for employees injured on the job.

Cyber Liability Insurance

Protects against risks like data breaches and cyberattacks.

Umbrellas Insurance Terms

Excess Liability Coverage

Provides additional liability coverage above and beyond your standard policies.

Personal Umbrella Policy

A policy offering extra liability protection for individuals and their assets.

Miscellaneous Insurance Terms

Peril

A specific risk or event that may cause a loss, such as fire, theft, or natural disaster.

Replacement Cost

The cost to replace an item or property with a new one of similar quality without depreciation.

Actual Cash Value (ACV)

The value of property after accounting for depreciation.

Subrogation

The process by which an insurance company recovers costs from a third party responsible for a loss.

Grace Period

The time after a premium due date during which coverage remains in force, even if payment hasn’t been made.

Lapse

Termination of an insurance policy due to non-payment of premiums.

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The ValYou Difference

ValYou Insurance
4300 SW 73rd. Avenue
Suite 102
Miami, FL, 33155

(786)567-4818
E: info@valyouinsurance.com