A
Actual Cash Value
An estimation of how much it will cost to replace or repair something damaged or stolen minus depreciation (the decrease in value over time).
Additional Insured
A person who has an insurable interest in your home and who is entitled to coverage under your insurance policy. In some cases, an additional insured may be an entity. Usually the insurer will have specific guidelines to address adding an additional insured to your policy.
Additional Interest
A person added to your insurance policy that only receives notification of coverage in effect (e.g. cancellation notice, nonrenewal notice, etc.). An additional interest does not have an insurable interest in your property and is not entitled to collect a claim payout in the event of a covered loss.
Adjuster
Someone who investigates claims to determine how much your insurance company should pay you for damages/losses to your property.
Agent
UPCIC appointed insurance agent who sells, services, or negotiates insurance policies independently on behalf of our company.
C
Coverage
The scope of protection provided under an insurance contract/policy.
Section I Coverages
Coverage afforded to you when your property is damaged, in the event of a covered loss.
Coverage A - Dwelling
The portion of your insurance policy that covers the physical structure of your home (e.g. roof, walls, floors, ceilings, etc.), in the event of a covered loss. This coverage also extends to most things that are permanently attached to your home.
Coverage B - Other Structures
The portion of your insurance policy that covers other structures on the property, not permanently attached to your home (e.g. fences, mailboxes, sheds, detached garages, etc.), in the event of a covered loss.
Coverage C - Personal Property
The portion of your insurance policy that covers personal property usual to your home while it is anywhere in the world (e.g. personal belongings, clothing, laptop, etc.), in the event of a covered loss. Most policies limit coverage for valuable items such as paintings, jewelry, guns, etc. It is in your best interest to review your policy to determine if your items are adequately insured.
Coverage D - Loss of Use
The portion of your insurance policy that covers additional living expenses that are over and above your typically incurred costs (e.g. food, lodging, etc.). This coverage is only used if your home is damaged, by a covered peril, to the extent that you can no longer live in it. Additionally, loss of use may also cover fair rental value and/or civil authority (i.e. a governmental order to evacuate, etc.).
Section II Coverages
Coverage afforded to others for their property damage or personal injury, on your behalf, in the event of a covered loss.
Coverage E - Personal Liability
The portion of your insurance policy that covers the property damage or personal injury of others in instances where you are legally liable as a result of your negligent actions.
Coverage F - Medical Payments
The portion of your insurance policy that covers medical expense to others, caused by actions of an insured, regardless of legal liability.
D
Declarations Page
This is a summary of your insurance policy, and includes key information such as coverage amounts, deductible, named insureds, agent information, etc. Remember, that this is only a summary of your policy. It is in your best interest to review your policy carefully to determine actual coverages and policy provisions.
Deductible
The dollar amount that must be exceeded before your insurer will pay for a covered loss. The deductible may be reflected as a flat dollar amount or a percentage of one of the Section I coverages. This amount will not be included in any claim payment you may receive. Depending on the state, deductibles may be separated by perils such as hurricane, wind, sinkhole, all other perils, all perils, etc.
E
Effective Dates
The date and time at which your insurance policy coverage begins and ends. These dates define the policy period or policy term.
Emergency Management, Preparedness and Assistance Trust Fund
Established by the Florida Legislature and funded by surcharges on insurance policies. This assessment is exclusive to the state of Florida and goes toward emergency management activities within the state.
Endorsement
An exclusion, addition, or any other type of change to the original terms of your insurance policy.
Exclusion
A provision of your insurance policy referring to a peril, circumstance, or property not covered by the policy.
F
Flood Coverage
Coverage that protects you against loss or damage to real or personal property by the peril of flood. Most Homeowners insurance policies exclude flood coverage.
H
Hazard
An action, condition, circumstance, or situation that makes the occurrence of a peril or loss more likely (e.g. corroded pipes, exposed wiring, unfenced pool, etc.).
I
Insurable Interest
Having a financial stake in a piece of property, to the extent that you would suffer an economic loss if that property were damaged or destroyed.
Insurance Policy
Insurance policies are legal contracts referred to as indemnity contracts, between you and your insurance company. Indemnity is compensation for damages or loss. Therefore, an insurance policy helps to make you “whole again” after covered damages or losses have occurred. Insurance is a way of transferring risk from one person or entity to another.
Insured
A term used to describe the person(s) who are covered under an insurance policy (may also be referred to as policyholder).
Insurer
A company authorized to write property and/or casualty insurance under the laws of a particular state.
L
Limit of Liability
Refers to the maximum amount your insurer may pay for any afforded coverage as stated on your declarations page and/or within the insurance policy language, in the event of a covered loss.
M
Market Value
Amount for which something can currently be sold on the market. Think of this as the price your paid for your home. Because markets fluctuate, your insurance company will not insure your home using the market valuation. Instead, they will use a replacement cost or other form of valuation.
P
Peril
An event or circumstance that causes or may potentially cause a loss (e.g. fire, flood, theft, etc.).
Policy Forms
Insurance contracts that are written to tailor coverage to specific types of property.
Homeowners 3 Special Form (HO3)
A package policy that covers both Section I Property Coverages and Section II Liability for the owner and resident of a single-family home. The policy form provides coverage for the home (dwelling) and its contents. This policy form may also be used to cover secondary or seasonal homes. The HO3 policy form covers all perils unless specifically excluded in the policy language.
Homeowners 4 Contents Broad Form (HO4)
A package policy that covers both Section I Property Coverages and Section II Liability for the tenant/renter of a single-family home, condo, or apartment. The policy form provides coverage for personal property usual to the residence while it is anywhere in the world. Coverage does not include the structure but may include any affixed items provided or improved by the renter.
Homeowners 6 Unit-Owners Form (HO6)
A package policy that covers both Section I Property Coverages and Section II Liability for the owner of a condominium unit, whether the unit is owner occupied or rented (on an annual basis). The policy form provides coverage for personal property and additions and alterations (from the "wall covering/paint" inward) and does not cover the building itself.
Homeowners 8 Modified Coverage Form (HO8)
A package policy that covers both Section I Property Coverages and Section II Liability. This policy form is meant for those homes that do not meet the criteria for the Homeowners 3 Special Form. It is important to note that the policy form does not provide water damage coverage and provides very limited theft coverage. In contrast to the HO3, the HO8 policy covers only the perils that are specifically named in the policy.
Varying types of landlord policies. Dwelling property policy forms are not package policies and Section II Liability coverages must be purchased at an additional cost (this varies by state).
NOTE: Because policy provisions, coverages, and exclusions vary between policy forms, it is in your best interest to review your insurance policy to determine if your property is adequately insured.
Policy Provisions
Clauses in an insurance contract that lay out the exact conditions for which coverage is provided (all the details of your insurance policy).
Premium
Refers to how much your insurance policy costs—what you will pay to be insurer—usually on an annual basis.
Premium Summary
A categorization breakout of sources that make up an entire policy premium, usually listed on your declarations page.
Total Policy Premium
Entire annual cost for the corresponding policy period.
MGA Fee/Policy Fees
A $25 Fee assessed by the Managing General Agent (Agent of the Company), and any statutorily required fees promulgated by the state. These fees vary by state.
Assessments/Surcharges
Additional premium costs based on certain risk characteristics not associated with added coverages.
Attached Endorsements
Net additional premium costs associated with added coverages or discounts provided by your insurer.
Basic Coverages
Calculated packaged policy premium that is not specifically related to additional coverages, assessments, surcharges, or fees.
Q
Quote
An estimate of how much your insurance policy will cost in relation to what type of coverage you’ll receive. It’s important to remember that a quote is only an approximation of what your final premium will be. Final premium is not determined until the policy is reviewed by the insurer (underwritten).
R
Real Property
Refers to land and any structures attached to it (e.g. fence, shed, garage, etc.), including your home. It is important to note that insurance does not cover land, rather your structures on the land.
Renewal
An insurance policy issued to replace an expiring policy.
Replacement Cost
An estimation of how much it will cost to replace or repair something damaged or stolen with a similar item of the same quality, make, and model. Replacement cost does not consider depreciation and usually does not include the cost of wear and tear.
W
Windstorm Protective Devices
Specific enhancements to your home that can reduce the severity of damage due to high winds (e.g. hurricane shutters).