Actual Cash Value (ACV) Basic valuation provision in property policies. ACV is determined but subtracting the depreciation from the property's replacement value.

Additional Insured Individual or business not listed as named insured in declarations, but added by an endorsement. Examples include contractors or distributors.

Additional Coverages (general) Coverages included in property policies, which extend beyond the principal policy coverages. Examples included: fire department service charge.

Blanket Insurance Single amount of insurance that is provided to all locations.

Collision Insurance (auto) Auto coverage, which insures an auto for a collision with another vehicle or another object other than an animal (striking an animal comes under Comprehensive Insurance on auto)

Comprehensive Insurance Auto coverage, which insures an auto for fire, theft, earthquake, flood, vandalism, falling objects, hitting an animal, etc. Also known as Other Than Collision.

Declaration - The part of your written policy (contract) that includes your name and address, the property that is being insured, its location and description, the policy period, the amount of insurance coverage and the applicable premiums.

Deductibles (general) The portion of a claim you pay out of pocket before the insurance company pays. A higher deductible will lower your premium and you do not have to carry the same deductible for comprehensive and collision coverages.

Direct Loss  Losses that are the direct physical result of an insured peril.

Exclusion - A restriction in your insurance policy that denies coverage for certain perils, persons, property or locations.

First Party Benefits (auto)   Benefits that are payable to an insured.

First Named Insured (general)   The individual named in a commercial policy who is responsible for carrying on the day-to-day functions of the insured, such as paying premiums and/or reporting losses.

Fraud  Any person who knowingly and with intent to defraud any insurance company or another person files an application for insurance containing any materially false information, or conceals for the purpose of misleading information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime and subjects the person to criminal and civil penalties.

Full Tort (auto)  This form of insurance allows you to maintain an unrestricted right for yourself and other members of your household to seek financial compensation for injuries caused by other drivers.  Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses and may also seek financial compensation for pain and suffering or other non-monetary damages as a result of injuries caused by other drivers. We always recommend Full Tort to our automobile insurance customers

Hazards (general) Condition or exposure that increases the possibility of loss (poor housekeeping, bad wiring, etc.)

Insurable Interest (general) Some form of financial interest in the item to be insured. Usually ownership.

Insured - The person or organization covered by an insurance policy.

Insurer - The insurance company.

Limited Tort In consideration of a lower premium this form of insurance limits your right and the rights of members of your household to seek financial compensation for injuries caused by other drivers.  Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses, but not for pain and suffering or other non-monetary damages.

Limits of Liability - The specified amount up to which the insurance company will protect you as set forth in the policy.

Market Value The price one would pay based upon free market conditions.

Mine Subsidence Mine subsidence is movement of the ground surface as a result of the collapse or failure of underground mine workings. In active underground mining operations using longwall mining or high extraction pillar recovery methods, subsidence can occur concurrently with the mining operation in a predictable manner.  In abandoned mines where rooms and unmined coal pillars are often left in various sizes and patterns, it may be impossible to predict if and when subsidence will occur. Mine subsidence resulting from abandoned room and pillar mines can generally be classified as either sinkhole subsidence or trough subsidence.  Mine Subsidence IS NOT COVERED under homeowner insurance

Named Insured (general)  The individual or business named in the policy declarations.

Named Peril Policy  Policy that specifically lists the perils insured against in the policy.

Negligence  Failure to exercise the care that a reasonable or prudent person would under similar circumstances.

Occurrence (general)  An accident, including continuous or repeated exposure to substantially the same general harmful conditions that result, during the policy period, in bodily injury or property damage.

Peril  A cause of loss (i.e. fire, lighting, theft, etc.)

Personal Umbrella Policy   Personal liability policy, which provides coverage in two areas: first, losses in excess of the required underlying limits, and second, for other coverages, not provided under underlying policies (i.e. personal injury, slander).

Personal Articles Floaters   Inland Marine Coverage which insures personal property for all risks of direct physical loss except for war risks, nuclear hazards, wear and tear, deterioration, inherent vice, insects or vermin.

Personal Property Replacement Cost   Homeowner Endorsement which provides full replacement cost coverage on personal property in place of actual cash value coverage.

Policy Period (general)  Time period as indicated in the declaration page during which coverages will be provided.

Property Damage  Physical injury to tangible property resulting in loss.

Quote - A cost estimate for insurance coverages based on specific information, like drivers, vehicles and driving record etc.

Replacement Cost  Basic valuation provisions which replaces old damaged property with new replacement property at today's replacement cost, without any deduction for depreciation.

Rider - Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage.

Subrogation  Legal process which permits the insurance company to subrogate against third parties who, because of their negligence, cause the company to pay a claim.

Surcharge - An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.

Underinsured Motorist Insurance (auto) Auto coverage which protects the auto owner in the event a negligent motorist causes an accident and carries limits which are too low to pay what the insured is due.   Applies to Bodily Injury only.  Physical Damage falls under Collision Coverage

Underwriting - The process of determining risk and in what amounts and on what terms the insurance company will accept the risk.

Uninsured Motorist Insurance (auto)   Auto coverage which protects the auto owner in the event an uninsured driver (one driver without insurance) causes an accident. Applies to Bodily Injury only.  Physical Damage falls under Collision Coverage

Unoccupancy (general)  The absence of people from the insured home or building. Generally will not affect a claim settlement.