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!
Ponding Hazard
Flooding in low-lying areas.
Population
The number of people living in a specific area.
Post-FIRM Building
A building constructed after a flood map became effective.
Pre-Existing Condition
A health condition you had before you enrolled in a new health insurance plan.
Pre-FIRM Building
A building constructed before a flood map became effective.
Preauthorization
A process where you need approval from your insurance company before receiving certain medical treatments or procedures.
Preferred Risk Policy (PRP)
A lower-cost flood insurance policy for low-risk properties.
Premium
The amount you pay for your insurance coverage. Think of it like a subscription fee, usually paid monthly,quarterly, or annually.
Premium Subsidies
Financial assistance available through the Health Insurance Marketplace to help eligible individuals and families afford health insurance.
Premium Tax Credit
A subsidy that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace.
Prepaid Amount (Total)
The total payment for a new or renewed flood insurance policy.
Prepaid Premium (Total)
The total insurance premium excluding certain fees.
Presentment of Payment (Premium)
The date of payment for the flood insurance premium.
Primary Residence
The main home of the policyholder.
Primary Residential Property
A primary residence or its contents.
Primary Structure
The main building on a property, such as a house or apartment building.
Principal Residence
A home where the policyholder lives most of the year.
Principally Above Ground Building
A building with most of its value above ground.
Prior Acts Coverage
Extends coverage for incidents that occurred before the policy's effective date.
Probation
A penalty for a community not meeting NFIP requirements.
Probation Surcharge (Premium)
An additional fee for policies in a community on probation.
Product Liability Insurance
Protects businesses from claims related to injuries or damages caused by their products.
Professional Liability Insurance
Protects professionals from claims related to errors or negligence in their work.
Program Deficiency
A flaw in a community's floodplain management program.
Proof of Loss
Documentation supporting a flood insurance claim.
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.
