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!
Structural Damage
Damage to the supporting framework or foundation of a building.
Structure
A building or other constructed object.
Subdivision
A divided parcel of land for development.
Subgrade Crawlspace
A crawlspace partially below ground level.
Submit-for-Rate (SFR)
A flood insurance application requiring a custom rate calculation.
Submit-to-Rate
The process of obtaining a custom flood insurance rate.
Subrogation
The right of an insurance company to pursue reimbursement from a third party responsible for a loss paid out under the policy.
Subsidized Premium Rate
A lower flood insurance rate for certain properties.
Substantial Improvement
Any reconstruction, repair, addition, or change to a building that requires a permit or that increases the cost of the building by 50% or more of its market value.
Substantially Damaged Building
A building damaged by at least 50% of its value.
Substantially Damaged Property
A damaged building or its contents exceeding 50% of the value.
Substantially Improved Building
A building with significant renovations or additions.
Substantially Improved Property
A property with a building that has undergone significant improvements.
Surcharge (Insurance)
An additional fee on flood insurance policies.
Suspension
The temporary removal of a community from the NFIP.
Swimming Pools
Structures for swimming, subject to flood regulations in V zones.
Tentative Rates
Estimated flood insurance premiums used when complete property information is unavailable.
Term Life Insurance
Provides coverage for a specific period (e.g., 10, 20, or 30 years).
Third-Party Claim
A claim made against another person's insurance policy.
Towing and Labor Coverage
Covers the cost of towing your car to a repair shop and some minor roadside repairs.
Travel Delay Insurance
Reimburses you for additional expenses incurred due to a covered travel delay.
Travel Insurance
Covers medical emergencies, trip cancellations, lost luggage, and other unexpected events that can happen while you're traveling.
Travel Trailer
A mobile home without a permanent foundation, not covered by flood insurance unless meeting specific criteria.
Trip Cancellation/Interruption Insurance
Trip Cancellation/Interruption Insurance
Two-Four (2 – 4) Family Building
A residential building with two to four living units.
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.
