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!
Retrofit
Making modifications to your home to make it more resistant to earthquake damage.
Revision to NFIP Maps
Updates to flood maps based on new information.
Risk Rating
A numerical value that reflects the flood risk of a property.
Sand Dunes
Natural structures protecting coastlines.
Scheduled Building Policy
A flood insurance policy with specific coverage amounts for buildings and contents.
Secondary Structure
A building on a property that is not the primary structure, such as a detached garage or shed.
Section 1316
A law prohibiting flood insurance for properties violating floodplain regulations.
Setback
The minimum distance a building must be from a water body.
Severe Repeat Loss
A property with multiple flood insurance claims exceeding a certain amount.
Severe Repetitive Loss Building
A building with multiple high-cost flood insurance claims.
Severe Repetitive Loss Property
A building or its contents with multiple high-cost flood insurance claims.
Sewer Systems
Systems for collecting and transporting wastewater.
Shared Care Rider
Allows you and your spouse to share a single pool of benefits.
Shear Walls
Structural walls designed to resist lateral forces.
Sheet Flow Hazard
Flooding over a wide area with shallow water depths.
Single Building
A freestanding building.
Single Family Dwelling
A home for one family.
Solid (Perimeter) Foundation Walls
Continuous walls supporting a building.
Special Flood Hazard Area (SFHA)
A high-risk flood zone where there's at least a 1% annual chance of flooding. Flood insurance is often mandatory in SFHAs if you have a federally backed mortgage.
Split Level
A building with different floor levels.
Standard Flood Insurance Policy (SFIP)
A typical flood insurance policy.
Start of Construction
The beginning of building construction.
State Requirements
Each state has different minimum insurance requirements, so make sure your policy meets or exceeds those limits.
Stock
Goods stored for sale or use.
Storage
The use of enclosed space below a building for storing items.
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.
