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!
Crawl Space
An enclosed area under a building that is not excavated to the full depth of a basement and is usually less than 3 feet high.
Critical Facilities
Buildings that are essential for emergency response, public health and safety, or economic recovery after a flood event. Examples include hospitals, fire stations, and power plants.
Cumulative Damage Building
A building that has suffered multiple flood-related damages totaling its fair market value.
Cumulative Damage Property
A building or its contents that has experienced cumulative damage.
Cyber Liability Insurance
Covers losses due to data breaches, cyberattacks, and other technology-related risks.
Daily Benefit
The amount the policy pays per day for covered long-term care services.
Date of Construction
The date the building permit was issued, if construction started within six months of the permit date.
Datum
A reference point used to measure elevation.
Death Benefit
The amount paid to beneficiaries upon the insured's death.
Death Benefits
Provides financial support to the family of an employee who dies as a result of a work-related injury or illness.
Declarations
The first part of the contract, containing information derived from the insurance application, which provides the information for rating risk.
Deductible
The amount you agree to pay out of pocket before your insurance kicks in. A higher deductible usually means a lower premium.
Deductible
Typically a percentage of your dwelling coverage limit, rather than a fixed dollar amount.
Deductibles
You'll typically have a deductible for collision and comprehensive coverage. This is the amount you'll pay out of pocket before your insurance kicks in.
Deductibles
A deductible is the amount you have to pay out of pocket before your insurance company will start paying for a claim.
Deductibles
You'll typically have a deductible for both dwelling and personal property coverage. This is the amount you'll pay out of pocket before your insurance kicks in.
Depth Grid
A digital grid that defines geographic space as an array of equally sized square cells arranged in rows and columns. The value in each cell represents the flood depth at that location.
Described Location
The address of the insured property.
Design Defects
Covers claims for injuries or damage caused by a product's faulty design.
Development
Any human-made alteration to land, including construction or excavation.
Diagram Number
A code identifying the building type on an elevation certificate.
Direct Physical Loss by or from Flood
Loss of or damage to insured property caused directly by a flood.
Direct Premiums
Property/casualty premiums collected by the insurer from policyholders, before reinsurance premiums are deducted.
Direct Writers
Insurance companies that sell directly to the public using exclusive agents or their own employees.
Disability Benefits
Provides wage replacement for employees who are unable to work due to a work-related injury or illness.
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.
