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!
Lowest Floor
The lowest enclosed level of a building, excluding basements or parking areas.
Lowest Floor Elevation (LFE)
The height of a building's lowest floor above a specific reference point.
Lowest Horizontal Structural Member
The lowest part of a building's structure.
Major Disaster Declaration
A presidential declaration of a major disaster, which makes federal assistance available to affected areas.
Mandatory Purchase
A requirement for flood insurance in areas designated as high-risk flood zones.
Mangrove Stand
A group of mangrove trees providing coastal protection.
Manufactured (Mobile) Home
A transportable home placed on a permanent foundation.
Manufactured (Mobile) Home Park or Subdivision
A designated area for manufactured homes.
Manufacturing Defects
Covers claims for injuries or damage caused by defects in the design or manufacturing process of a product.
Map Revision
An update to a flood map.
Marketing Defects
Covers claims for injuries or damage caused by inadequate warnings or instructions about a product's use.
Masonry Veneer
A type of exterior wall covering that may require additional coverage due to its susceptibility to earthquake damage.
Masonry Walls
Walls made of bricks, stones, or concrete blocks.
Mechanical Equipment
Building systems for heating, cooling, ventilation, plumbing, and electrical power.
Medical Benefits
Covers medical expenses for work-related injuries or illnesses.
Medical Evacuation Insurance
Covers the cost of transporting you to a medical facility or back home if you become seriously ill or injured while traveling.
Medical Payments (MedPay) Coverage
Similar to PIP, but it typically has lower limits and may not cover lost wages. MedPay can be used in conjunction with your health insurance.
Medical Payments to Others
Covers medical expenses for people injured in your rental unit, regardless of who is at fault.
Minor Disaster
A disaster that causes less severe damage than a major disaster and does not require a presidential declaration.
Misrating
An incorrect calculation of flood insurance premium.
Mixed-Use Building
A building with both residential and commercial purposes.
Modular Building
A building constructed in sections and assembled on-site.
Moral Hazard
The risk that an insured person will intentionally cause a loss to collect insurance benefits.
Mortgage Portfolio Protection Program (MPPP)
A program helping lenders comply with flood insurance requirements.
Mudflow
A flow of mud and water over land.
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.
