Mueller Insurance Services · Insurance reference
Insurance terms, explained simply.
Clear definitions for better coverage conversations. Search a term or browse by coverage type—from home deductibles and roof settlement to business liability, life insurance and cyber protection.
Find the term you need.
Understand the terms you see on declarations pages, endorsements and claims paperwork. Search for a phrase from your documents or browse by coverage type.
268 insurance terms
Accelerated death benefit
A rider allowing an eligible insured to access part of the death benefit early after meeting a specified qualifying condition.
Actual cash value
Actual cash value is a property settlement method that generally accounts for depreciation. A damaged older item or roof may therefore receive less than the cost of buying new, depending on policy wording and applicable rules.
Reference: NAIC insurance glossary
Additional insured
An additional insured is a person or organization granted specified protection under another party's policy. The endorsement determines the covered relationship, activities, and limitations.
Additional interest
A party noted as having an interest in a policy, often for notices; that designation alone does not make the party an insured.
Additional living expense
The covered increase in necessary living costs when a covered loss prevents normal use of a residence, within time and dollar limits.
Aftermarket parts
Replacement vehicle parts made by a supplier other than the original vehicle manufacturer.
Aggregate limit
The maximum payable for a defined group of covered losses during a stated period, often a policy year.
Professional liability aggregate: The overall cap for qualifying professional liability payments during the defined policy period or reporting structure.
Cyber coverage aggregate: The overall cap for specified cyber payments during the applicable period, potentially shared across several coverage sections.
Reference: NAIC insurance glossary
Agreed value boat coverage
A settlement arrangement using a value agreed at policy issuance for qualifying losses, subject to deductibles and stated conditions.
Agreed value endorsement
A property endorsement that can suspend a coinsurance requirement for an agreed period when its stated conditions are satisfied.
Appraisal clause
A procedure for resolving a disagreement over the amount of property loss; it does not necessarily decide coverage disputes.
Association master policy
The condominium or community association's insurance contract; governing documents and policy wording determine its insured property and responsibilities.
At-fault accident
An accident for which a driver is determined to bear legal or insurance responsibility, in whole or in part.
ATV insurance
Insurance for qualifying all-terrain vehicle liabilities and optional vehicle damage or other benefits.
Auto insurance
Insurance addressing specified vehicle liabilities and, when selected, damage to insured vehicles and other benefits.
Auto liability insurance
Auto liability insurance helps address covered claims for injuries or property damage you cause to others with a covered vehicle. It does not replace coverage for damage to your own car.
Auto medical payments coverage
Coverage for qualifying medical or funeral expenses after an auto accident, regardless of fault, within the policy's insured-person definitions.
Auto physical damage coverage
Protection for damage to the insured vehicle itself, commonly through comprehensive and collision coverages.
Basic causes of loss form
A commercial property form covering a defined list of causes, subject to exclusions and limitations.
Beneficiary
The person or entity designated to receive a life insurance benefit when the insured dies, subject to the contract and applicable rules.
Blanket property limit
One limit shared across specified properties, locations, or property categories, with allocation conditions and endorsements to review.
Boat insurance
Coverage for specified watercraft damage, liabilities, and optional boating-related expenses.
Bodily injury liability
Protection for covered claims alleging physical injury, sickness, disease, or resulting death of another person.
Broad causes of loss form
A commercial property form adding specified causes to basic-form protection; it remains a named-perils approach.
Builders risk insurance
Property coverage for qualifying construction or renovation projects, with terms defining the property, project period, and covered causes of loss.
Building coverage
Property coverage for the insured structure and qualifying components or fixtures identified by the policy.
Business email compromise
An attack using compromised or impersonated business communications to induce transfers, disclosure, or other harmful actions.
Business income coverage
Business income insurance, often called business interruption insurance, covers qualifying lost net income and continuing normal operating expenses after an insured interruption. The damage trigger, waiting period, recovery period, and limit determine the protection.
Business income waiting period
The time after an eligible interruption begins before specified business-income benefits start; it differs from a dollar deductible.
Business owners policy
A business owners policy, often called BOP insurance, packages eligible business property and general liability coverage, commonly with business-income protection. Employees, professional services, vehicles, and cyber risks may require separate coverage.
Business personal property
Covered business contents such as furniture, equipment, and inventory, within the policy's location and property definitions.
Cancellation
Ending a policy before its scheduled expiration date, subject to contract terms and applicable notice rules.
Cash surrender value
The amount available on surrender after applicable surrender charges, loans, and other adjustments.
Cash value
The accumulated policy value in qualifying permanent life insurance, governed by crediting, charges, and access provisions.
Certificate holder
The party receiving a certificate of insurance; that status alone does not grant coverage.
Certificate of insurance
A certificate of insurance summarizes reported policy information at a point in time. Being a certificate holder does not itself make you an additional insured or change the policy.
Claimant
A person or organization seeking payment or another remedy from an insured or insurer.
Claims-made coverage
Coverage generally tied to when a claim is first made and, where required, reported, together with retroactive-date and other conditions.
Reference: The Hartford: claims-made versus occurrence
Coinsurance clause
A property provision that may reduce payment when carried limits fall below a required percentage of the property's value.
Collision coverage
Collision insurance covers qualifying damage to your insured vehicle from collision with another object or overturn. It is separate from comprehensive coverage and usually has its own deductible.
Combined single limit
One liability limit available for covered bodily injury and property damage from an accident, rather than separate split limits.
Commercial auto insurance
Commercial auto insurance addresses specified business vehicle liabilities and selected physical-damage or other benefits. Covered auto symbols and endorsements determine which owned, hired, or non-owned vehicles qualify for each coverage.
Commercial property insurance
Commercial property insurance covers specified business buildings, contents, and related property losses. Compare the policy form, loss settlement method, deductibles, and limits rather than assuming every property policy responds alike.
Completed operations liability
Potential legal responsibility for injury or damage arising after qualifying work has been finished or put to its intended use.
Comprehensive coverage
Comprehensive car insurance covers qualifying vehicle damage from events other than collision, such as theft, hail, fire, or animal impact. A deductible and exclusions may apply.
Condo insurance
An individual unit-owner policy addressing specified property, liability, and loss-of-use exposures alongside the association's master policy.
Consent to settle
A policy requirement addressing whether an insured's approval is needed before settling a claim and the consequences of withholding it.
Contestability period
A period during which an insurer may investigate and challenge certain application statements under applicable policy and legal rules.
Contingent beneficiary
A backup recipient who may receive the benefit if the primary beneficiary cannot receive it under the designation.
Contractors equipment coverage
Property coverage for qualifying tools or mobile equipment, with theft, valuation, transit, and leased-equipment terms to review.
Contractual liability
Liability assumed under an agreement; coverage for it depends on policy exclusions, exceptions, and the nature of the obligation.
Cosmetic damage exclusion
A restriction on damage that affects appearance but not function, often relevant to metal roofs or exterior materials.
Coverage
The protection a policy provides for a specified event, expense, liability, or benefit, within its stated terms.
Coverage limit
The maximum amount payable for a specified coverage, benefit, event, or period, as defined by the policy.
Covered auto symbols
Numbers on a business auto policy identifying which categories of vehicles qualify for each selected coverage.
Custom equipment coverage
Protection for specified vehicle modifications or added equipment beyond standard equipment, within declared values and limits.
Cyber business interruption
Protection for qualifying income loss and expenses caused by a covered cyber-related interruption, subject to trigger, waiting period, and duration limits.
Cyber extortion coverage
Protection for specified extortion-related response costs and, when lawful and covered, certain payments, subject to consent and other conditions.
Cyber insurance
Cyber insurance addresses selected data, privacy, computer-system, and cybercrime risks. First-party recovery costs and third-party liability are different coverage sections, with separate triggers, retentions, sublimits, and exclusions to compare.
Cyber liability coverage
Cyber liability insurance addresses specified claims by others arising from covered privacy or network-security events. It is different from coverage for your own incident response, restoration, or interruption costs.
Damage to rented premises
A limited liability coverage for specified damage to premises rented to an insured; it is not broad coverage for all leased property.
Data breach
An event involving unauthorized access, disclosure, or loss of protected information under the applicable policy or legal definition.
Data breach response coverage
Data breach response coverage pays qualifying investigation, notification, legal coordination, and other response costs after an eligible event. The scope of data breach insurance depends on the included coverage sections and approval requirements.
Reference: Travelers: cyber coverage overview
Data restoration coverage
Protection for qualifying costs to recover or recreate electronic information after a covered event, within restoration and valuation rules.
Death benefit
The amount payable after a covered death, adjusted for applicable policy options, loans, riders, and other contract provisions.
Debris removal
Coverage for qualifying costs of removing debris after a covered loss, with limits that may be separate from or included within other limits.
Declarations page
An insurance declarations page summarizes the insureds, covered property, selected limits, dates, and premium. Read it with the coverage forms and endorsements; it is not the entire policy.
Reference: Missouri insurance glossary
Deductible
An insurance deductible is the part of a covered loss the policy leaves for you to pay. Check whether it is a dollar amount or a percentage and how often it applies.
Commercial property deductible: The deductible applying to a covered business property loss, which may vary by peril, building, or coverage section.
Reference: Missouri insurance glossary
Defense inside limits
A structure in which qualifying defense expenses reduce the limit available for damages or settlements.
Defense outside limits
A structure in which qualifying defense expenses do not reduce the applicable damages limit, subject to policy details.
Delivery-use exclusion
A restriction on specified delivery activities under an auto policy, which may require different coverage.
Dependent property coverage
Business-income protection for qualifying disruption caused by covered damage to specified suppliers, customers, or other dependent locations.
Depreciation
A reduction in property value reflecting factors such as age, wear, condition, or obsolescence.
Diminished value
A reduction in a vehicle's market value after repairs; recoverability depends on the claim, policy, and applicable rules.
DP-1 policy
A basic dwelling form generally using listed perils and often actual-cash-value settlement unless modified.
DP-2 policy
A dwelling form generally covering a broader list of named perils than DP-1, with settlement provisions requiring review.
DP-3 policy
A dwelling form generally using open-perils coverage for the dwelling, with separate treatment of personal property and settlement terms.
Duty to defend
An insurer's contractual obligation to provide a defense for qualifying claims, subject to the policy and applicable law.
Dwelling coverage
Protection for the insured home's structure and attached components, within the policy's property definitions.
Dwelling fire policy
A residential property form commonly used for rental or other eligible dwellings; selected causes of loss and liability coverage require review.
Each-occurrence limit
The maximum payable for covered damages arising from one occurrence, as defined by the policy.
Earth movement exclusion
A provision excluding specified movement of earth; its scope may include more than earthquakes.
Earthquake deductible
An earthquake insurance deductible is your share of a covered earthquake loss. Review the percentage, the value it is applied to, and whether separate calculations apply to buildings or contents.
Earthquake insurance
Coverage for qualifying earthquake damage, often under a separate policy or endorsement with distinct deductibles and terms.
Effective date
The date coverage begins; the policy may also specify a particular start time.
Emergency mitigation
Reasonable steps taken to prevent further damage after a loss, such as temporary covering or water extraction; preserve documentation.
Employee theft coverage
Crime insurance for qualifying theft of covered property by employees, with discovery, ownership, and employee definitions requiring review.
Employers liability insurance
Coverage for specified employer liabilities for employee injury outside the statutory workers' compensation benefit obligation, subject to exclusions and limits.
Endorsement
A document that changes a policy by adding, removing, or modifying coverage or other contract terms.
Reference: Missouri insurance glossary
Equipment breakdown coverage
Protection for qualifying sudden equipment failures, such as electrical or mechanical breakdown, beyond ordinary property-peril coverage.
Excess liability insurance
Liability coverage intended to respond above specified underlying coverage or a defined attachment point.
Excess underinsured motorist coverage
Additional underinsured-motorist protection when specifically purchased, with its own triggers, offsets, and underlying requirements.
Excess uninsured motorist coverage
Additional uninsured-motorist protection above a specified primary limit when expressly included; ordinary umbrella liability does not automatically provide it.
Excluded driver
A person specifically excluded from coverage under an endorsement, where permitted; the consequences depend on the exclusion.
Exclusion
Policy wording that removes specified causes of loss, activities, property, people, or liabilities from coverage.
Reference: Missouri insurance glossary
Experience modification factor
A rating factor comparing an eligible employer's loss experience with expected experience under the applicable rating plan.
Expiration date
The date coverage ends unless renewed or extended, subject to the policy's stated time.
Extended business income
Protection for a defined period of reduced income after operations resume following a covered interruption, within policy conditions.
Extended replacement cost
Additional rebuilding protection above the dwelling limit, usually capped at a stated percentage or amount.
Extended reporting period
Additional time to report eligible claims under an ended claims-made policy; it does not generally cover new acts after termination.
Tail coverage: A common label for an extended reporting period, with eligible acts, claims, duration, and limits determined by the policy.
Extra expense coverage
Coverage for qualifying additional costs incurred to avoid or minimize an insured interruption, within the policy's requirements.
Face amount
The policy's stated insurance amount; the death benefit actually payable can differ because of policy options or adjustments.
Fair rental value
Covered rental income lost when insured residential space becomes unfit for use after a covered loss, less expenses that do not continue.
First-party cyber coverage
Protection for an insured organization's own qualifying incident expenses or losses, such as restoration or interruption costs.
Reference: Travelers: cyber coverage overview
Flood insurance
Coverage for qualifying inundation events under a flood policy's definition; ordinary homeowners insurance generally excludes flood damage.
Reference: NFIP: buying flood coverage
Full coverage
An informal phrase with no standard policy definition; identify the actual liability, physical-damage, and other coverages selected.
Full-timer RV coverage
Coverage designed for eligible people using an RV as a primary residence, with expanded personal-liability or residence-related options.
Functional replacement cost
A valuation approach using less costly property that performs the same function, when permitted by the policy.
Funds transfer fraud coverage
Funds transfer fraud insurance addresses specified unauthorized instructions moving money from an account. A transfer an employee was tricked into authorizing may fall under different social engineering wording.
Gap insurance
Gap insurance can help cover an eligible difference between a totaled vehicle's covered settlement and its remaining loan or lease balance. Caps, excluded charges, and eligibility rules can leave part of the debt unpaid.
Garaging address
The location where a vehicle is normally kept, used in underwriting and rating and sometimes coverage eligibility.
Glass coverage
Protection for qualifying glass loss, which may need to match a lease obligation or separately selected limit.
Grace period
The time allowed after a premium or required payment is due before coverage lapses, subject to the contract.
Guaranteed replacement cost
Guaranteed replacement cost can provide rebuilding protection beyond the stated dwelling limit after a covered loss. It applies only when the endorsement's eligibility, valuation, and rebuilding conditions are met.
Hired auto liability
Liability coverage for qualifying rented, leased, hired, or borrowed vehicles used by the business, within policy definitions.
Hired auto physical damage
Coverage for qualifying damage to rented or hired vehicles, separate from liability protection and subject to valuation and contract limitations.
HO-3 policy
A common homeowners form that generally uses open-perils coverage for the dwelling and named-perils coverage for belongings, subject to modifications.
HO-4 policy
A common renters form covering specified personal property, liability, and loss-of-use exposures within its terms.
HO-5 policy
A homeowners form that generally broadens personal-property coverage to an open-perils basis, subject to exclusions and endorsements.
HO-6 policy
A common condominium unit-owner form covering specified unit property, belongings, liability, and loss-of-use exposures.
Home business endorsement
A policy change addressing certain business exposures at a residence; it may still leave gaps requiring commercial insurance.
Home sharing endorsement
A policy change for qualifying short-term rental activity; permitted platforms, frequency, and liability terms vary.
Household driver
A driver living in the insured's household whose information may affect eligibility, rating, or coverage requirements.
Independent insurance agent
An insurance professional who can work with multiple insurers rather than represent only one company's products.
Reference: NAIC insurance glossary
Inflation guard
A policy feature that adjusts insured values over time using a stated method to help reflect changing costs.
Inland marine insurance
Property insurance for specified mobile, in-transit, specialized, or location-flexible exposures, as defined by the coverage form.
Insurance adjuster
A person who investigates and evaluates a claim to help determine coverage and the amount payable.
Reference: NAIC insurance glossary
Insurance binder
Temporary evidence of an agreement to provide insurance while the formal policy is being issued, within the binder's terms.
Reference: Missouri insurance glossary
Insurance claim
An insurance claim is a request for payment or another policy benefit after an event you believe is covered. Reporting a claim does not establish that the loss is insured.
Insurance policy
The contract describing what the insurer agrees to cover, what it excludes, and the responsibilities of each party.
Insurance to value
The relationship between the amount of property insurance purchased and the value used by the policy's settlement requirements.
Insured
A person or organization entitled to protection under the policy's definition of who is insured.
Reference: Missouri insurance glossary
Insurer
The insurance company that assumes the covered risk and is responsible for the policy's promised payments.
Jewelry sublimit
A specific cap applying to certain jewelry losses under general personal-property coverage; scheduling may provide different protection.
Landlord insurance
Landlord insurance addresses qualifying rental-property damage, rental-income loss, and premises liability. Occupancy, policy form, tenant damage restrictions, and valuation terms should match how the property is actually rented.
Lapse
A break in coverage, often caused by nonpayment or failure to satisfy a requirement for keeping the policy active.
Legal defense costs
Expenses of defending a covered claim, including qualifying attorneys' fees; whether they reduce limits depends on the policy.
Liability insurance
Coverage for specified legal responsibilities to others, commonly including covered damages and a defense under the policy's terms.
Lienholder
A party with a legal security interest in a financed vehicle or other property.
Life insurance
A contract paying a specified benefit upon a covered insured person's death, with policy type, duration, and conditions determining the protection.
Limited fungi coverage
A restricted amount of coverage for specified mold or fungi-related costs when the policy's triggering conditions are met.
Loan or lease payoff coverage
An endorsement paying an eligible amount toward remaining vehicle debt after a covered total loss, often with a percentage cap and exclusions.
Loss assessment coverage
Coverage for certain qualifying assessments charged to unit owners after covered association losses, subject to causes, deductibles, and sublimits.
Loss of rents
A common label for covered rental-income loss after qualifying property damage; it does not cover every interruption in rent collection.
Loss of use coverage
Protection for qualifying costs or lost use after a covered event makes property unusable; the covered benefits depend on the policy.
Loss payee
A party identified to receive certain property claim payments because it has an insured financial interest in that property.
Loss runs
A record of reported claims and loss information used in underwriting and insurance review.
Loss settlement provision
The policy wording that determines how a covered property payment is calculated and what requirements must be satisfied.
Maintenance of underlying insurance
A condition requiring specified primary coverage to remain in place; a gap may leave the insured responsible for the missing layer.
Margin clause
An endorsement capping recovery for a listed property using a stated percentage of its reported value, even when a broader blanket limit exists.
Market value
What property might sell for in the marketplace; it can differ substantially from the cost to rebuild it.
Master policy deductible assessment
A charge assigning part of an association deductible to a unit owner; an HO-6 policy may apply a distinct assessment limit or restriction.
Matching coverage
An endorsement or provision addressing replacement of undamaged material to obtain a reasonably consistent appearance after a covered loss.
Medical payments to others
Limited coverage for qualifying medical expenses of others without requiring a finding of insured negligence; eligibility and exclusions still apply.
Mortgagee
A lender or other party holding a mortgage interest identified under the policy's mortgage provisions.
Motor truck cargo insurance
Coverage for qualifying loss or damage to goods transported by a motor carrier, subject to cargo, cause, and valuation restrictions.
Motorcycle insurance
Insurance for specified motorcycle liability, optional physical damage, and selected rider or passenger benefits.
Multifactor authentication
An access control requiring more than one distinct authentication factor rather than only a password.
Named insured
The person or organization specifically identified as an insured in the policy declarations.
Named perils coverage
Property coverage applying to causes of loss specifically listed in the policy, subject to exclusions and conditions.
Negligence
Failure to use the care required in a situation, potentially creating legal responsibility for resulting harm.
New car replacement
A coverage option that can provide a specified new-vehicle replacement benefit after a qualifying total loss.
Non-owned auto liability
Liability protection for the business's qualifying use of vehicles it does not own, such as employee-owned cars on company errands.
Nonrenewal
A decision not to continue a policy after its current period ends; it differs from cancellation during the term.
Occurrence
An event meeting the policy's definition, often an accident including continuous or repeated exposure to substantially similar harmful conditions.
Occurrence coverage
Coverage generally tied to when covered injury or damage occurs, even if the claim is made later, subject to policy terms.
Reference: The Hartford: claims-made versus occurrence
OEM parts coverage
An endorsement or settlement provision addressing original-equipment manufacturer parts for qualifying repairs.
Off-premises personal property
Belongings away from the residence that may remain covered, often with location-specific limits or restrictions.
Open perils coverage
Property coverage for direct physical loss unless excluded or otherwise limited; it does not mean every possible loss is covered.
Reference: NAIC insurance glossary
Ordinance or law coverage
Protection for specified added costs caused by enforcement of building rules after a covered loss; covered cost categories and limits vary.
Other structures coverage
Protection for qualifying structures separated from the dwelling, such as a detached garage or fence.
Owner exclusion election
A permitted election excluding an eligible owner from workers' compensation coverage; entity type and state rules matter.
Owner inclusion election
A qualifying owner's choice or requirement to participate in workers' compensation coverage, documented under applicable rules.
Reference: Missouri Department of Labor: workers compensation
Part Three: other states insurance
A policy provision addressing qualifying work in listed other states under stated conditions; it is not blanket nationwide workers' compensation coverage.
Partial loss
Damage affecting only part of insured property rather than requiring settlement as a total loss.
Percentage deductible
A deductible calculated using a stated percentage of a specified policy value or limit, rather than necessarily the amount of damage.
Period of restoration
The policy-defined time used to measure certain business-income or extra-expense losses after qualifying damage.
Permanent life insurance
Life coverage designed to remain in force long term when its funding and other requirements are satisfied, often including cash value.
Reference: NAIC life insurance overview
Permissive use
Use of a vehicle with the owner's permission; insured status and available limits depend on policy wording.
Personal and advertising injury
A liability category for specified offenses, such as certain defamation or advertising-related claims; it is not general bodily injury coverage.
Personal articles floater
A policy or coverage form protecting specified valuable personal items, often with broader protection than a standard home policy.
Personal injury endorsement
An endorsement that can add specified offense-based liability protection to a personal policy, such as certain libel or slander claims.
Personal property coverage
Protection for covered belongings, such as furniture, clothing, and electronics, subject to valuation rules and category limits.
Personal umbrella policy
Personal umbrella insurance provides an additional layer for eligible household liability above required primary policies. Drivers, properties, watercraft, and other exposures must fit its underwriting and coverage terms.
Personal watercraft insurance
Coverage designed for qualifying jet-propelled personal watercraft and their specified liabilities or physical damage.
Pet liability
Potential responsibility for injuries or damage caused by an animal; exclusions, underwriting restrictions, and sublimits require review.
Policy conditions
Requirements and procedures that govern coverage, such as reporting losses, cooperating with the insurer, or paying premiums.
Policy loan
An advance secured by eligible policy value, usually accruing interest and potentially reducing benefits or affecting policy sustainability.
Policy period
The span between the policy's effective and expiration dates; coverage triggers may impose additional timing requirements.
Policyholder
The person or organization that owns the insurance contract; other people may also qualify as insureds.
Pollution exclusion
A restriction on pollution-related injury, damage, or costs; its scope and exceptions vary significantly.
Premises liability
Potential legal responsibility for injuries or damage connected to the condition, ownership, maintenance, or use of a location.
Primary beneficiary
The first designated recipient of an eligible death benefit under the beneficiary arrangement.
Prior acts coverage
Coverage for eligible acts before the current policy began, bounded by any retroactive date and other exclusions.
Cyber prior acts coverage: Protection for eligible earlier acts under a cyber policy's timing and knowledge provisions; a retroactive date may apply.
Products liability
Potential legal responsibility for injury or damage caused by a product supplied by an insured business.
Products-completed operations aggregate
A separate aggregate limit commonly applying to covered products and completed-operations losses.
Professional liability insurance
Professional liability insurance, also called errors and omissions insurance or E&O insurance, addresses specified claims alleging mistakes in covered professional services. Review the services definition, claim-reporting requirements, retroactive date, and defense-cost treatment.
Errors and omissions insurance: A common name for professional liability coverage, with insured services and covered allegations defined by the particular policy.
Professional services definition
The policy's description of the work eligible for professional liability protection; an inaccurate description can leave significant gaps.
Professional services exclusion
A restriction on liability arising from specified professional work, often requiring professional liability coverage instead.
Proof of loss
A statement of the facts and amount of a claimed loss, supplied in the form and time required by the policy.
Property damage liability
Protection for covered claims alleging damage to another party's property, including qualifying loss of use.
Property of others
Property owned by another party that may receive limited protection while in an insured's custody under specified property coverage.
Reconstruction cost estimate
An estimate of what it would cost to rebuild a structure, based on its features and local construction inputs.
Recoverable depreciation
A depreciation amount initially withheld from a claim payment that may become payable after qualifying repair or replacement is documented.
Recreational vehicle insurance
Coverage designed for qualifying motorhomes or travel trailers, with options beyond ordinary auto insurance.
Renewal
Continuing insurance into a new policy period, potentially with revised prices, limits, or terms.
Rental reimbursement
Coverage for qualifying temporary transportation expenses after a covered vehicle loss, subject to daily and total limits.
Renters insurance
Renters insurance protects eligible tenants' covered belongings and specified liability and loss-of-use exposures. It generally does not insure the landlord's building or automatically cover every roommate.
Replacement cost
Replacement cost coverage values qualifying repairs or replacement using comparable new property without deducting depreciation. The policy can require completed repairs or replacement before the full amount is payable.
Reservation of rights
An insurer's notice that it is handling or defending a claim while preserving its ability to dispute coverage.
Retroactive date
The earliest date of acts eligible for specified claims-made protection, subject to all other coverage requirements.
Cyber retroactive date: The earliest eligible act date for specified cyber protection; some coverage sections may use different timing provisions.
Reference: The Hartford: claims-made versus occurrence
Roadside assistance
A service benefit for specified roadside events such as a disabled vehicle, subject to service, mileage, and occurrence limits.
Roof payment schedule
A policy schedule that determines a roof payment using factors such as age or material; the scheduled payment may be less than replacement cost.
Roof replacement cost coverage
Roof loss settlement without a depreciation deduction for qualifying repairs or replacement, subject to applicable limits, deductibles, and conditions.
Salvage
Damaged property remaining after a loss that may retain value and affect the settlement if kept by the insured.
Scheduled personal property
Specific valuable belongings individually listed for coverage, often with broader terms or different deductibles than unscheduled belongings.
Scheduled property limit
A separate limit assigned to a listed building, location, or property item, rather than a shared blanket limit.
Seepage
Water entering or escaping gradually over time; many property forms restrict repeated or continuous seepage losses.
Self-insured retention
A self-insured retention is the amount of eligible loss or expense the insured must handle before specified coverage responds. Who manages and pays defense costs can differ from a conventional deductible.
Service line coverage
Protection for qualifying underground utility lines serving the property, subject to ownership, cause-of-loss, and repair limitations.
Short-term rental insurance
Coverage designed for qualifying temporary rental use, with occupancy, platform, frequency, and service restrictions to review.
Special causes of loss form
A commercial property form covering direct physical loss unless excluded or limited, subject to its stated conditions.
Split liability limits
Separate auto liability limits for injury to one person, injury to all people in one accident, and property damage in one accident.
Spoilage coverage
Protection for qualifying perishable stock loss caused by listed conditions such as temperature change or contamination, depending on the form.
SR-22 filing
A form filed with a state to demonstrate required financial responsibility; it is not a separate type of insurance policy.
Stated amount coverage
Coverage listing an amount that may cap payment but may still permit actual-cash-value settlement; it is not necessarily agreed value.
Statement of values
An itemized report of property values used in underwriting and, in some arrangements, applying policy limit provisions.
Sublimit
A smaller limit applying to a particular type of loss within a broader coverage limit.
Subrogation
The insurer's right to pursue a responsible third party after paying a covered loss, subject to legal and policy restrictions.
Symbol 1: any auto
A business auto designation for any auto within the applicable coverage and policy terms; it is not a promise of all vehicle coverages.
Symbol 2: owned autos only
A business auto designation for autos the named insured owns, including qualifying newly acquired autos under the form.
Symbol 7: specifically described autos
A business auto designation generally limiting coverage to listed autos, with limited automatic coverage provisions to review.
Symbol 8: hired autos only
A business auto designation for qualifying autos leased, hired, rented, or borrowed, subject to excluded sources and policy definitions.
Symbol 9: non-owned autos only
A business auto designation for qualifying autos used in the business that the insured does not own, lease, hire, rent, or borrow.
Temporary total disability
Wage-replacement benefits for a qualifying period when a worker cannot perform work, as defined by the applicable law.
Tenant improvements
Alterations made to rented space, with insurable interests and responsibilities determined by the lease and policy.
Term conversion deadline
The last date or age at which the contract permits conversion to an eligible permanent policy.
Term life insurance
Term life insurance pays a death benefit for a covered death during a specified term, generally without cash value. Compare the level-premium period, conversion rights, and renewal terms as well as the initial price.
Reference: NAIC life insurance overview
Territorial limits
The geographic area in which coverage applies, including any special restrictions on travel outside that area.
Third-party cyber coverage
Protection for specified liabilities to other parties following a covered cyber or privacy event.
Reference: Travelers: cyber coverage overview
Total loss
A loss treated as complete under the applicable valuation, policy terms, and rules; it does not always mean every component is destroyed.
Umbrella insurance
Umbrella insurance provides an additional liability layer above required underlying policies and may cover specified broader exposures. Extra uninsured or underinsured motorist protection must be expressly included; it is not automatic.
Underinsured motorist coverage
Underinsured motorist coverage can protect eligible insured people when an at-fault driver's liability insurance is insufficient. The policy's trigger, available limits, offsets, and insured-person definitions determine what it pays.
Underlying insurance
The primary or lower-layer policies that an excess or umbrella policy expects to sit beneath it.
Underlying limit requirement
The minimum limits the excess or umbrella insurer requires on designated underlying policies.
Uninsured motorist coverage
Uninsured motorist coverage protects eligible insured people against qualifying losses caused by a driver without applicable liability insurance. Bodily injury and property damage protections are distinct and depend on the policy and state.
Uninsured motorist property damage
Coverage for qualifying damage to an insured vehicle caused by an uninsured driver, where available and selected.
Unit improvements and betterments
Alterations or upgrades within a condo unit that may need protection under the owner's policy, depending on governing documents and master coverage.
Universal life insurance
Permanent life insurance combining a death benefit with policy value and flexible features; funding and charges affect how long coverage lasts.
Unoccupancy
A temporary absence of people from property that may still contain normal furnishings; it is not necessarily the same as vacancy.
Utility services time element
An extension for qualifying business-income or extra-expense loss caused by interruption of specified utility services.
UTV insurance
Insurance for qualifying utility or side-by-side vehicles, with permitted uses and road-operation restrictions to review.
Vacancy
A policy-defined condition involving insufficient occupancy or use that can restrict coverage after a stated period.
Vehicle identification number
The unique vehicle identifier used to confirm the insured vehicle and its characteristics.
Waiver of subrogation
A waiver of subrogation limits an insurer's recovery rights against a specified party after a loss. The contract request and the actual policy endorsement must be reviewed together.
Waiver of subrogation endorsement for workers compensation: An endorsement restricting recovery rights against specified parties for qualifying claims, within the endorsement and applicable law.
Water backup coverage
Coverage for specified sewer, drain, or sump backup losses when included; it is different from flood coverage.
Wear and tear exclusion
A provision excluding normal deterioration; insurance is not a substitute for routine maintenance.
Whole life insurance
Whole life insurance is permanent life coverage generally offering contractually specified premiums, death benefits, and cash values when requirements are met. Any future policy dividends are separate and are not guaranteed.
Wind and hail deductible
A wind and hail deductible is the share you pay for a covered wind or hail loss. A percentage deductible may be based on the insured building limit rather than the repair bill.
Workers compensation class code
A classification identifying work operations for rating; actual duties and classification rules determine the appropriate code.
Workers compensation insurance
Workers compensation insurance, also called workers comp insurance, pays statutory benefits for covered work-related injuries or diseases. Review employers liability, state listings, worker classifications, and owner elections separately.
Workers compensation medical benefits
Payment for eligible treatment of a compensable work injury or disease, under applicable statutory requirements.
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Put the definition in context.
These explanations describe general insurance concepts. The policy forms, endorsements and applicable rules determine actual coverage. A familiar label does not mean every policy provides the same protection.
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Original explanations by Mueller Insurance Services. Entry-level references are provided where recorded; reference links support general terminology and do not establish coverage under a particular carrier policy. Updated October 21, 2026.
Social engineering fraud coverage
Social engineering insurance can cover specified losses when deception causes an eligible transfer of funds or property. It may have its own verification requirements, deductible or retention, and lower limit.
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