Insurance Glossary

Master insurance terminology with our comprehensive glossary of terms and definitions.

A person or entity added to an insurance policy as a covered party, typically contractors or vendors required by the property owner.

Insurance settlement based on replacement cost minus depreciation. Typically lower than replacement cost coverage.

Specialized insurance for construction projects covering building materials, structure, and labor during the construction period.

A clause requiring the policyholder to carry insurance equal to a percentage of property value; failure to do so results in partial claim denial.

The amount the policyholder must pay out-of-pocket before insurance coverage begins; higher deductibles lower premiums.

Insurance protection for the physical structure of a rental property, including walls, roof, and permanently installed fixtures.

A modification or addition to an insurance policy that expands or restricts coverage; also called a rider.

Specific conditions, perils, or types of damage not covered by an insurance policy.

National Flood Insurance Program - the federal flood insurance provider administered by FEMA.

A specific cause of loss covered by insurance, such as fire, windstorm, theft, or vandalism.

The maximum amount an insurance policy will pay for a covered loss.

The amount paid to an insurance company for coverage, typically monthly, quarterly, or annually.

Insurance settlement based on the full cost to replace damaged property without depreciation; typically higher than ACV.

The insurer's right to pursue a third party responsible for a loss to recover amounts paid on the claim.