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!
Collision Coverage
Pays for damage to your own vehicle due to a collision with another vehicle or object, regardless of who is at fault. This can include repairs, replacement, or reimbursement for the actual cash value of your car.
Commercial Auto Insurance
Covers vehicles owned by a business for business use.
Community
A political entity, such as a city, town, or township, that has authority to adopt and enforce floodplain management regulations as a requirement of participating in the National Flood Insurance Program (NFIP).
Community Assistance Visit (CAV)
An on-site review by FEMA to assess a community's floodplain management practices and provide technical assistance.
Community Compliance Program
FEMA's program to assist communities in meeting NFIP floodplain management requirements.
Community Number
A unique identifier assigned to each NFIP community.
Community Rating System (CRS)
A FEMA program rewarding communities for exceeding minimum floodplain management standards.
Compensatory Storage
The practice of maintaining open space in flood-prone areas to absorb excess water.
Comprehensive Coverage
Covers damage to your vehicle from incidents other than collisions, such as:some text
- Theft: If your car is stolen, this coverage can help pay for its replacement.
- Vandalism: If your car is damaged by vandalism, comprehensive coverage can help cover the repair costs.
- Natural Disasters: If your car is damaged by a hail storm, flood, or falling tree, comprehensive can help cover the costs.
- Fire: If your car catches fire, this coverage can help pay for repairs or replacement.
- Animal Damage: If your car is damaged by an animal (like a deer hitting your car), comprehensive can help.
Conditional Letter of Map Revision (CLOMR)
FEMA's review of a proposed project's potential impact on flood risks.
Condominium
A type of property ownership where individuals own units and share common areas.
Condominium Association
An entity managing common areas in a condominium building.
Condominium Building
A building with multiple individually owned units sharing common areas.
Content Coverage
The portion of a flood insurance policy that covers damage to personal belongings within the insured building.
Contents Coverage
Pays to repair or replace your personal belongings in the event of a covered loss.
Contents Coverage (Personal Property Coverage)
Covers your belongings inside your home, like furniture, clothing, and electronics. It may have a lower coverage limit than building property coverage.
Contract Agent
An insurance agent authorized to sell NFIP policies on behalf of a Write Your Own (WYO) company.
Coordination of Benefits (COB)
A process that determines which insurance plan pays first when you have multiple policies.
Copay
A fixed amount you pay for a covered healthcare service, like a doctor visit or prescription.
Countywide Map
A flood map covering an entire county, including its cities and towns.
Coverage Limit
The maximum amount your insurance policy will pay for a covered loss.
Coverage Limits
Each type of coverage has a limit, which is the maximum amount your insurance company will pay for a covered loss.
Coverage Limits
Each type of coverage has a limit, which is the maximum amount your insurance company will pay for a covered loss.
Coverage limits
The amount of coverage you need will vary depending on the value of your home and your belongings.
Covered Structure
A building that is covered by a flood insurance policy.
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.
