Terms and Definitions
Browse our glossary of insurance terms and definitions to give you the knowledge and to better understand your policy and other important information about all types of insurance.
Reinstatement
When your policy goes back into force after it lapsed due to nonpayment of premiums.
Replacement Cost Coverage (on Contents)
Pays for the cost to replace damaged personal property or items at current costs without factoring in deductions for depreciation.
Replacement Cost Coverage (on Dwelling)
Pays for the cost to replace damaged property or structures without factoring in deductions for depreciation, but payment is limited to a maximum dollar amount.
Risk
The chance that a loss may occur.
Sub-limit
A specified amount that is less than the maximum limits on a home insurance policy. Sub-limits are noted for specified coverages or types of property.
Subrogation
In insurance, subrogation substitutes one party (insurer) for another party (insured) in order to pursue any rights that the insured may have against a third party who is liable for a loss.
Surcharge
When an insurance company increases your rate due to a factor (like your driving record, or the distance from your house to the fire department) that increases your likelihood of suffering a loss.
Term
The length of time covered by a policy.
Underwriting
The process an insurance company uses to determine if someone is eligible for insurance and, if so, how much that person should pay for insurance