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!
Multifamily Building
A residential building with multiple units.
NFIP Bureau and Statistical Agent
An organization supporting NFIP operations.
NFIP Servicing Agent
An organization handling flood insurance policies directly for FEMA.
NFIP Special Direct Facility (SDF)
A division of the NFIP Servicing Agent managing high-risk properties.
National Flood Insurance Program (NFIP)
A federal program managed by FEMA that makes flood insurance available to homeowners, renters, and business owners.
National Flood Insurance Program (NFIP)
A federal program offering flood insurance.
National Geodetic Vertical Datum (NGVD) of 1929
A former standard reference for elevation measurements.
Natural Grade
The original ground level before any construction.
Network
A group of healthcare providers who have agreed to provide services to members of a particular health insurance plan at a discounted rate.
New Construction
Buildings constructed after the effective date of a flood map.
Newly Mapped (A Property Newly Mapped into the SFHA)
A property newly identified as being in a high-risk flood zone.
No-Rise Certification
A document confirming a construction project will not increase flood levels.
Non-Primary Residence
A property that is not the main residence of the policyholder.
Non-Primary Residential Property
A non-primary residence or its contents.
Non-Residential Building
A building used for commercial or non-living purposes.
Non-Residential Property
A commercial building or its contents.
Non-elevation Building
A building with its lowest floor at or below the Base Flood Elevation (BFE).
Non-participating Community
A community that has not chosen to participate in the National Flood Insurance Program (NFIP).
North American Vertical Datum (NAVD) of 1988
The current standard reference for elevation measurements.
Nullification
The process of canceling an insurance contract from its inception.
Obstructions
Structures or objects that hinder floodwater flow below an elevated building.
Occurrence Policy
Covers claims arising from incidents that occurred during the policy period, even if the claim is made after the policy expires.
Openings
Vents in enclosed areas below elevated buildings to equalize water pressure.
Ordinances
Local laws regulating land use and development, including floodplain management.
Ordinary High Water Mark
The line on the shore established by the presence or absence of water.
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.
