Video Glossary All Insurance Act of God An act of God is a sudden act of nature like a flood or earthquake, which could not have been prevented. Contrary to... Play Video Actual Cash Value (ACV) This refers to the current cost of replacing a lost or damaged item with a similar one in the same... Play Video Additional Interest Insured This is a term for another person or company who may be liable if an accident takes... Play Video Adjuster An adjuster is a person who investigates and settles losses, usually for an insurance... Play Video Agent An insurance agent is an individual who sells insurance products for only one insurance company, as opposed to a... Play Video All Perils Policy This optional coverage provides the broadest possible coverage to protect yourself from loss or damage to your... Play Video All Risks Policy This optional coverage protects against loss or damage from all perils with the exception of those specifically... Play Video Automobile Liability Insurance This coverage provides protection against financial loss when you are at-fault in car-related injuries or damage to... Play Video Automobile Physical Damage Insurance This coverage pays for automobile damage or loss resulting from collision, fire, theft, or other covered... Play Video Bailee A bailee is a trustworthy person or business that takes the public’s goods under its... Play Video Broker Unlike an Agent, a broker is someone who sells insurance products for many different insurance companies, allowing him... Play Video Business Interruption This covers you for business expenses and loss of income after a fire or other... Play Video C.L.E.A.R. Rating This is a popular car insurance rating system, which groups cars based on their claims experiences, such as repair... Play Video Co-Insurance Co-insurance refers to a penalty you incur when you under-insure your property, requiring you to share a percentage of... Play Video Collision Coverage In a vehicle collision, this optional coverage goes beyond basic liability insurance to cover damage to your own... Play Video Comprehensive Insurance This optional coverage protects you when vehicle damage is unrelated to collision. It covers things like hail, flood,... Play Video Deductible A deductible is the portion of a loss that you are required to pay yourself before your insurance coverage will... Play Video Driving Record Your driving record is used to describe your driving history, including any accidents or traffic... Play Video Endorsements This is an amendment to a policy used to add, delete or change... Play Video Errors and Omissions Insurance This coverage, normally needed by professionals and consultants, provides protection against loss from some negligent... Play Video Exclusion Exclusions are causes and conditions that are NOT covered. They are listed in your... Play Video Facility A facility is a pooling method for people unable to get car insurance in the voluntary market. Insurers issue... Play Video Fair Market Value This is the price that a willing buyer would pay a willing seller, when neither are compelled to sell or... Play Video Group Discount or Rate This is a rate provided to a member of an eligible group, such as employees of the same employer, members of the same... Play Video Hazard Hazards are situations that make loss more likely, such as slippery floors, unsanitary conditions, shingled roofs,... Play Video Improvements and Betterments These are additions made by a tenant, at his own cost, to a building that he is occupying. These become part of the... Play Video Indemnity When you indemnify someone, you absolve them of responsibility for any damages they incur. An insurance policy... Play Video Lapse A lapse refers to the termination of a policy when you fail to pay your... Play Video Liability Insurance Liability insurance pays other people if you’ve injured them or damaged their property. It also covers your... Play Video Misrepresentation When you try to secure a lower insurance rate by misrepresenting your level of risk, this is misrepresentation. This... Play Video Moral Hazard This term refers to morals or habits that increase the probability of a loss from a peril. The attitude of,... Play Video Named Insured This refers to the person or company named in an insurance policy that is protected under that policy. In some cases,... Play Video Named Perils Policies These are policies that specifically state which perils are protected against, and protect against no... Play Video Negligence Negligence means failure to use the degree of care that an ordinary person of reasonable judgment would use under a... Play Video No Fault Insurance This means a person’s own insurance company pays for financial losses after an accident, regardless of who... Play Video Partial Loss As opposed to a total loss, a partial loss is one that neither totally destroys the insured property, nor exhausts the... Play Video Peril A peril is a specific event causing loss or damage, such as the damage to buildings caused by fire or windstorm, or... Play Video Physical Damage This is a generic term indicating actual damage to... Play Video Premium Your premium is the amount you are required to pay to your insurer periodically in exchange for... Play Video Professional Liability Insurance This coverage indemnifies professionals for any losses resulting from malpractice, errors or mistakes on their part in... Play Video Proof of Loss This is a formal statement you make to an insurance company regarding a loss, in order to give them sufficient... Play Video Renewal A renewal is an extension of an insurance policy for an additional period, as the current policy is about to... Play Video Replacement Cost As opposed to Actual Cash Value, this refers to the cost of replacing property without accounting for... Play Video Specified Perils Policy This covers your automobile against losses caused by fire, theft, lightning, windstorm, hail or rising water,... Play Video Subrogation After you are compensated for a loss caused by a third party, this is the legal process by which your insurer seeks to... Play Video Third Party Insurance This coverage protects you against liability for damage to or destruction of the bodies or property of... Play Video Umbrella Liability Policy This is a policy that pays for liability losses in excess of those covered in your homeowners’ insurance and... Play Video Underwriter This is a term for an insurance company or group that underwrites or insures a particular... Play Video Valued Policy Under this kind of policy, the parties agree on the insured property’s value at the time of... Play Video ? What are You Looking For? 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