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FAQs
Glossary
Like all businesses, insurance has its own vocabulary which can, at times, be confusing to consumers. The words that follow represent terms that we use in this site. If you have questions about other insurance terminology, we encourage you to ask your agent so you can be sure you understand your coverages.
Advertising Injury
Injury rising out of an offense committed in the course of your advertising activities, if such injury rises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan.
After Market Parts
Parts that are manufactured by producers other than the original equipment manufacturer.
Appraiser
Person who inspects property to determine the amount and value of loss sustained.
Bodily Injury Liability
The liability that may arise from injury to or the death of another person.
Cancellation
The decision by either the insured or the insurer to terminate a policy in accordance with the provisions in the contract or by mutual agreement.
Comprehensive
Coverage which helps pay for damage to your vehicle not caused by collision. Examples are damage resulting from falling objects, fire, certain natural disasters, or vandalism. Comprehensive coverage also generally covers theft.
Claim
Notification to an insurance company requesting payment of an amount due under the terms of the policy.
Deductible
The amount of a loss that an insurance policy holder has to pay out-of-pocket before reimbursement begins.
Depreciation
A decrease in value of a vehicle or property due to age, use, wear and tear, etc.
Effective Date
The date on which the protection of an insurance policy goes into effect.
Endorsement
A form attached to an insurance policy bearing the language necessary to change the terms of the policy to fit special circumstances.
Liability
Broadly, any legally enforceable obligation. The term is most commonly used to describe an obligation to pay damages.
Liability Insurance
Insurance that pays on behalf of an insured for loss arising out of his or her responsibility to others imposed by law or assumed by contract.
Loss
Generally refers to (1) the amount of reduction in the value of an insured’s property caused by an insured peril, (2) the amount sought through an insured’s claim, or (3) the amount paid on behalf of an insured under an insurance contract.
Loss Exposure
Any condition or situation that presents the possibility of a financial loss.
Personal Injury
Injury other than bodily injury, such as wrongful eviction or detention, libel, slander, defamation of character, invasion of privacy, false arrest or false imprisonment, malicious prosecution.
Premium
A regular or periodic payment paid to keep a policy in force.
Property Damage
Physical injury to, destruction of or loss of use of tangible property.
Property Damage Liability Insurance
Protection against liability for damage to the property of another not in the care, custody or control of the insured as distinguished from liability for bodily injury protection, the premiums and limits of insurance being distinct.
Replacement Cost
The cost of replacing property without deduction for depreciation.