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!
Disability Insurance
Provides income replacement if you become unable to work due to illness or injury.
Domestic Insurance Company
Term used by a state to refer to any company incorporated there.
Dwelling
A building designed for residential use, accommodating up to four families or a single-family unit within a condominium.
Dwelling Coverage
Covers the structure of your home, including the walls, roof, foundation, and built-in appliances.
Dwelling Form
A specific type of flood insurance policy covering dwellings.
Earned Premium
The portion of premium that applies to the expired part of the policy period.
Earthquake Insurance
Covers damage caused by earthquakes.
Electrical Systems
The building's electrical wiring and components.
Elevated Building
A building with the lowest floor constructed above the Base Flood Elevation (BFE) of the special flood hazard area (SFHA).
Elevation Certificate
A document certifying a property's elevation above base flood level. An elevation certificate is often required to purchase flood insurance.
Elevators
Lifts used for vertical transportation within buildings, subject to flood protection requirements.
Elimination Period
The waiting period after you become disabled before benefits begin.
Elimination Period
The waiting period after you become eligible for benefits before they begin.
Emergency Management Preparedness and Assistance Trust Fund
Funded by surcharges on certain insurance policies to fund emergency management activities.
Emergency Medical Insurance
Covers medical expenses for unexpected illnesses or injuries while traveling.
Emergency Preparedness Plan
A plan outlining actions to be taken before, during, and after a flood event to minimize loss of life and property damage.
Emergency Program
The initial phase of a community's participation in the NFIP.
Enclosure
The enclosed area below the lowest floor of an elevated building.
Encroachments
Construction or activities within a floodway that can increase flood levels.
Endorsement
A modification to your insurance policy that adds, deletes, or changes coverage. Also known as a rider.
Equivalent Flood Protection
Measures taken to provide the same level of flood protection as a flood protection system that is being removed, replaced, or modified.
Erosion
The gradual wearing away of land by water.
Errors and Omissions Coverage (E&O)
A professional liability policy covering the policyholder for negligent acts and omissions that may harm his or her clients.
Exam Fees
Some plans cover the cost of exam fees at the vet.
Excess Liability
The additional liability coverage provided by the umbrella policy beyond the limits of your primary policies.
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.
