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!
Other Non-Residential Building
A building with a non-residential purpose that doesn't fit other categories.
Other Residential Building
A residential building with five or more units or a mix of residential and commercial uses.
Other Structures Coverage
Covers detached structures on your property, like a garage, shed, or fence.
Otherwise Protected Areas (OPAs)
Areas protected by law for wildlife, recreation, or natural resource conservation.
Out-As-Shown Determination
A FEMA decision confirming a property is outside a high-risk flood zone based on map information.
Out-of-Network Provider
A healthcare provider who has not contracted with your insurance company. You may have to pay more for their services.
Out-of-Pocket Maximum
The most you'll have to pay for covered expenses in a year. Once you reach this limit, your insurance will cover 100% of the costs.
Own Occupation Disability Insurance
Pays benefits if you're unable to perform your own occupation.
Owner
The person or entity with ownership interest in a property.
Partial Disability Benefits
Pays a reduced benefit if you can work part-time but not full-time.
Participating Community
A community that has chosen to participate in the National Flood Insurance Program (NFIP).
Participation in the NFIP
Voluntary enrollment in the National Flood Insurance Program.
Peril
An event that can cause damage or loss, like fire, theft, or a car accident.
Permit for Floodplain Development
Required authorization for construction in flood-prone areas.
Personal Injury Protection (PIP)
Also known as "no-fault" insurance, PIP covers medical expenses for you and your passengers, regardless of who is at fault in an accident.
Personal Liability
Covers legal costs and damages if you are found liable for injuries or property damage to others.
Personal Liability Coverage
Protects you if someone is injured in your rental unit or if you accidentally damage someone else's property.
Personal Property Coverage
Covers your belongings inside your home, such as furniture, clothing, electronics, and appliances.
Personal Property Coverage
Covers damage to your belongings inside the building.
Pet Insurance
Helps cover veterinary expenses for your pet's illnesses or injuries.
Policy
Your insurance contract. This is the document that spells out exactly what's covered, what's not, and the conditions under which you'll receive a payout.
Policy
The insurance contract between the insured and the insurer.
Policy Period
The time frame your insurance policy is active.
Policy Year
The 12-month period for which a flood insurance policy is in effect.
Pollutants
Contaminated substances.
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.
