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!
Proper Openings - Enclosures (Applicable to Zones A, A1-A30, AE, AO, AH, AR and AR Dual)
Required vents in enclosed areas below elevated buildings.
Property Damage Liability (PDL)
Covers damage you cause to someone else's property with your vehicle (like another car, a fence, or a building).
Property Insurance
Covers damage to your business property from fire, theft, vandalism, and other perils.
Property Removed to Safety Expense
Reimbursement for moving property to safety during a flood.
Provider
A doctor, hospital, or other healthcare professional who provides medical services.
Provisional Rating
Temporary flood insurance rate before receiving an elevation certificate.
Rate Zone
A geographic area with similar flood risks and insurance rates.
Reasonably Safe from Flooding
A determination that a building site is not at significant risk of flooding.
Recreational Vehicle
A vehicle designed for temporary living, not permanent residence.
Referral
A written order from your primary care physician (PCP) to see a specialist.
Regular Program
The final phase of a community's participation in the NFIP with full insurance coverage available.
Regular Program Community
A community fully participating in the NFIP with established flood risk maps and standard insurance coverage options.
Regulatory Floodway
The area required to carry floodwaters without increasing flood levels.
Reinstatement
The process of a community rejoining the NFIP after suspension.
Renewal
The process of continuing your coverage after the policy period ends.
Rental Reimbursement Coverage
Covers the cost of a rental car while your car is being repaired after a covered accident.
Renters Insurance
Similar to homeowners insurance, but specifically for those who rent their homes or apartments. It covers your personal belongings and can provide liability protection.
Repetitive Loss
Multiple flood insurance claims for the same property.
Repetitive Loss Structure
A building with multiple flood insurance claims.
Replacement Cost Value (RCV)
- What it is: Pays to replace your damaged or destroyed items with new ones of similar kind and quality, regardless of their age or depreciation.
- Example: If your 5-year-old TV is stolen, RCV coverage would pay for a brand new TV of the same or similar model.
- Pros: Provides more comprehensive protection and allows you to fully replace your belongings.
- Cons: Higher premiums than ACV coverage.
Reserve Fund Assessment
A fee added to flood insurance premiums for a reserve fund.
Residential Building
A building designed for people to live in.
Residential Condominium Building
A building with multiple residential units owned individually.
Residential Condominium Building Association Policy (RCBAP)
A flood insurance policy for condominium associations.
Residential Property
A residential building or its contents.
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.
