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!
Flood Boundary and Floodway Map (FBFM)
A map that identifies areas subject to flooding and designates floodways to protect against increased flood hazards.
Flood Elevation Study
A technical study that determines flood elevations for a specific area.
Flood Hazard Area
An area susceptible to flooding.
Flood Hazard Boundary Map (FHBM)
A map identifying general flood-prone areas.
Flood Hazards of Special Concern
Unique flood risks like tsunamis, dam breaks, and mudflows.
Flood In Progress
A flood currently occurring.
Flood Insurance
Covers damage to your home or property caused by flooding.
Flood Insurance
Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents.
Flood Insurance Claims Office (FICO)
A temporary NFIP claims office established after a major flood event.
Flood Insurance Rate Map (FIRM)
A map that identifies flood-prone areas and risk levels.
Flood Insurance Study (FIS)
A technical study conducted by FEMA to determine flood risks in a community.
Flood Loss
Financial damage caused by a flood event.
Flood Map
A map showing flood-prone areas, risk levels, and flood boundaries.
Flood Proofing
Modifications made to a building to prevent floodwater from entering.
Flood Response Office (FRO)
A local office assisting with flood insurance claims after a disaster.
Flood Zone
A geographic area with a designated flood risk level, which determines the flood insurance rates.
Flood Zone Designation
The classification of a property based on its flood risk, such as A, AE, AO, AH, X, etc.
Flood-Related Erosion
Land erosion caused by unusually high water levels or severe storms.
Floodway
The channel of a river or stream that is required to carry a flood discharge of a specified magnitude.
Formulary
A list of prescription drugs covered by your health insurance plan.
Fraud
Intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid.
Freeboard
The vertical distance between the design flood water elevation and the lowest horizontal structural member of a building.
Gap Insurance
Covers the difference between what you owe on your car loan and what your car is actually worth. This is especially useful for new cars that depreciate quickly.
Garages
Structures used for vehicle storage, often attached to homes.
General Flood Area
An area that is outside of the Special Flood Hazard Area but is still subject to flooding.
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.