Insurance 101: The Ultimate Glossary of Must-Know Terms
Insurance can feel like a maze of confusing jargon. But understanding the key terms is crucial for making informed decisions about protecting yourself, your loved ones, and your assets. Let's decode the insurance lingo together!
Indian Tribes
Tribal governments recognized by the NFIP and eligible for flood insurance.
Indirect Loss
Financial loss resulting from a flood that is not caused by direct physical damage to property.
Inflation Protection
Increases your benefits over time to keep up with the rising cost of care.
Insurable Interest
The financial stake you have in the person or property being insured.
Insured
The person or entity protected by the insurance policy.
Insured Property
Property covered by an insurance policy, including properties acquired through foreclosure.
Insurer
The insurance company providing the coverage.
Inundation Map
A map showing areas likely to be flooded by a specific flood event.
Lapse
The termination of your policy due to non-payment of premiums.
Letter of Determination Review (LODR)
A FEMA review of a lender’s determination of a property’s flood zone.
Letter of Map Amendment (LOMA)
A FEMA document confirming a property is not in a high-risk flood zone.
Letter of Map Change (LOMC)
A general term for FEMA map revisions.
Letter of Map Revision (LOMR)
A document issued by FEMA to revise flood zone information for a specific property.
Letter of Map Revision Based on Fill (LOMR-F)
A FEMA map revision based on the addition of fill to a property.
Liability
Your legal responsibility for damages or injuries to others. Liability insurance can protect you from financial loss due to lawsuits.
Liability Coverage
Protects you if someone is injured on your property or if you accidentally damage someone else's property.
Life Insurance
Provides a payout to your beneficiaries upon your death, helping them cover expenses and replace lost income.
Liquidated Damages
A predetermined amount of money paid as compensation for a breach of contract.
Long-Term Care Insurance
Provides financial assistance for the cost of long-term care services.
Loss in Progress
Damage that occurred before the start of an insurance policy.
Loss of Use Coverage
Similar to ALE, but it can cover lost rental income if you rent out part of your home and it becomes uninhabitable due to a covered loss.
Loss of Use Coverage
Pays for additional living expenses if your rental unit becomes uninhabitable due to a covered loss.
Lost Luggage Insurance
Reimburses you for the cost of lost, stolen, or damaged luggage.
Low-Rise Building
A building with fewer than five units or three floors.
Lowest Adjacent Grade
The ground level closest to a building.
Don't Be Afraid to Ask!
If you come across an insurance term you don't understand, don't hesitate to ask your insurance agent or company. They are there to help you navigate the complexities of insurance. Remember, knowledge is power when it comes to protecting your financial well-being.
Pro Tip: Always read your insurance policy carefully and ask questions to ensure you have the right coverage for your specific needs and circumstances.
