Understand insurance terms
Deductible, premium, liability coverage, SR-22... We explain every term in plain language so you can decide with confidence.
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Accelerated Death Benefit Rider
An add-on to a life insurance policy that lets you receive part of your death benefit early if you are diagnosed with a terminal or serious illness, to help pay medical or living costs.
Accidental Death & Dismemberment (AD&D)
Accidental Death & Dismemberment (AD&D) is a type of insurance benefit that pays if the insured dies or suffers certain severe injuries, such as the loss of a limb, sight, hearing, or speech, because of a covered accident. It usually does not cover death or injury from illness, natural causes, or events excluded by the policy.
Actual Cash Value
A way of settling a claim that pays the replacement cost of an item minus depreciation for its age and wear. It results in a lower payout than replacement cost coverage.
Additional Insured
A person or entity added to a policy so they are also protected for claims arising from the named insured’s work. Clients, landlords or general contractors often require it by contract before letting you work. It is added by endorsement and usually confirmed with a certificate of insurance.
Additional Living Expenses (ALE)
Also called loss of use, this homeowners coverage pays your extra costs to live elsewhere — hotel, meals, rent — while your home is being repaired after a covered loss.
Aggregate Limit
The maximum total amount an insurance policy will pay for all covered claims during the policy period, no matter how many separate claims occur.
Annuity
An annuity is a contract, usually sold by an insurance company, that is designed to provide a stream of income, often during retirement. It is commonly funded with a lump sum or a series of payments, and the money may grow tax-deferred until withdrawals begin, depending on the type of annuity and tax rules.
At-Fault Accident
An accident where you are found legally responsible for causing the damage or injuries. In at-fault states like Georgia, the at-fault driver’s liability insurance pays for the other party’s losses, and an at-fault accident can raise your future premium.
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Beneficiary
The person or people you name to receive the payout from your life insurance policy when you pass away. You can name more than one and update them over time.
Betterment
Betterment is the part of a repair or replacement that leaves a property in better condition than it was before the loss. In many US insurance claims, the insurer may not pay for the extra cost of this upgrade because insurance is meant to restore covered property to its pre-loss condition, not improve it.
Blanket Coverage
Blanket coverage is an insurance policy or endorsement that applies one combined limit to more than one item, location, or category of property instead of assigning a separate limit to each one. It is commonly used when a business wants flexible protection across multiple buildings, locations, or types of equipment.
Bodily Injury Liability
The part of your auto liability coverage that pays for injuries you cause to other people in an at-fault accident, including their medical bills and, in some cases, lost wages. Georgia law requires a minimum of $25,000 per person and $50,000 per accident.
Builders Risk Insurance
Builders risk insurance is a type of property insurance that helps cover buildings and structures while they are under construction, renovation, or repair. It may also cover materials, equipment, and supplies used for the project if they are damaged by a covered loss such as fire, wind, or theft.
Business Interruption Coverage
Coverage that helps replace lost income and pay ongoing expenses when a covered event (like a fire) forces your business to temporarily close.
Business Owners Policy (BOP)
A bundled policy combining general liability and commercial property, often with business interruption. It is designed for small and midsize businesses and usually costs less than buying each coverage separately. It does not include workers’ compensation or commercial auto, which are bought separately.
Business Owners Policy (BOP)
A package policy that bundles general liability and commercial property coverage — and often business interruption — into one convenient plan for small and medium businesses, usually at a lower cost than buying each separately.
Business Personal Property
Business Personal Property refers to the movable property a business owns and uses in its operations, such as furniture, equipment, inventory, and supplies. It is commonly covered under a commercial property policy when caused by a covered loss.
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Captive vs. Independent Agent
A captive agent sells policies for only one insurance company, while an independent agent works with many carriers and can compare options for you. TOP Insurance is an independent agency working with 30+ carriers.
Cash Surrender Value
Cash surrender value is the amount of money a policyholder can receive if they end a permanent life insurance policy before the insured person dies. It is the policy's accumulated value, minus any surrender charges, loans, or unpaid fees, if applicable.
Cash Value
A savings component in permanent life insurance policies that grows over time on a tax-deferred basis. You can borrow against it or withdraw from it while you are alive, though this can reduce the death benefit.
Certificate of Insurance (COI)
A one-page document proving you have active coverage, often required by clients, landlords or job sites. It shows coverage types, limits and effective dates, but it does not replace the policy itself. It is usually issued free and you can request it from your agent whenever you need one.
Certificate of Insurance (COI)
A one-page document that proves a business has active insurance coverage. Clients, landlords, and general contractors often require a COI before signing a contract or starting work.
Claim
A formal request you file with your insurer asking them to pay for a covered loss, such as an accident, theft, or damage. The insurer reviews it and pays what your policy covers, minus any deductible.
Claims Adjuster
The insurance professional who investigates a claim, inspects the damage, reviews your policy, and determines how much the insurer will pay. They are your main contact during the claim process.
COBRA
COBRA is a federal law that lets certain people keep their employer-sponsored health coverage for a limited time after they lose job-based coverage or experience another qualifying event, such as a reduction in work hours. The person usually pays the full premium and may also pay an administrative fee, so COBRA is often more expensive than coverage from an employer.
Coinsurance
The share of a covered medical cost you pay after meeting your deductible, expressed as a percentage. Your insurer pays the rest until you reach your out-of-pocket maximum.
Collision Coverage
Coverage that pays to repair or replace your own vehicle after a collision with another car or object, regardless of who was at fault, up to the vehicle’s value minus your deductible.
Commercial Auto Insurance
Coverage for vehicles used for business, such as work trucks, vans, or company cars. Personal auto policies usually exclude business use, so businesses that drive for work need a commercial auto policy.
Commercial Property Insurance
Coverage that protects the physical assets of a business — building, equipment, inventory, and furniture — against events like fire, theft, and certain storms.
Comprehensive Coverage
Coverage for damage to your vehicle that is not caused by a collision — such as theft, vandalism, fire, hail, flooding, or hitting an animal.
Contestability Period
A window (usually the first two years of a life insurance policy) during which the insurer can investigate and deny a claim if the application contained material misstatements.
Coordination of Benefits (COB)
Coordination of Benefits (COB) is the process health insurance companies use when a person is covered by more than one health plan. It helps determine which plan pays first and how much the other plan may pay, so the total payment does not exceed the actual cost of the covered service.
Copay
A fixed amount you pay for a covered health service, like a doctor visit or prescription, at the time you receive it. Your insurance covers the rest of the allowed cost.
Covered Peril
A specific cause of loss that your policy protects against, such as fire, theft, hail, or windstorm. Home policies either list covered perils by name or cover all perils except those specifically excluded.
Cyber Liability Insurance
Coverage that helps a business respond to a data breach or cyberattack, paying for things like customer notification, credit monitoring, legal fees and recovery costs.
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Death Benefit
The amount of money a life insurance company pays to your beneficiaries when you pass away. It is usually paid tax-free and can be used for funeral costs, debts, or living expenses.
Deductible
The amount you pay out of pocket on a covered claim before your insurance starts to pay. A higher deductible usually lowers your premium, and a lower deductible raises it.
Depreciation
Depreciation is the decrease in an item's value over time because of age, wear and tear, or obsolescence. In property insurance, depreciation may be used to reduce the amount paid for a covered loss, especially when a policy pays actual cash value instead of replacement cost.
Diminished Value
Diminished value is the loss in a vehicle’s market value after it has been damaged and repaired. Even if repairs are done properly, some buyers may pay less for a car with an accident history than for a similar car with no prior damage.
Directors and Officers (D&O) Insurance
Directors and Officers (D&O) Insurance helps protect company leaders, such as directors and officers, if they are accused of making decisions that caused financial harm or other losses while managing the business. It can help pay for legal defense costs, settlements, and judgments, subject to the policy terms and exclusions.
Drug Formulary
The list of prescription drugs your health plan covers, usually organized in tiers. Drugs on lower tiers cost you less; drugs not on the formulary may not be covered.
Dwelling Coverage
The part of a homeowners policy that pays to repair or rebuild the physical structure of your home — walls, roof, and built-in systems — after a covered loss like fire or a storm.
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Effective Date
The date your insurance coverage officially begins. Before this date, you are not covered even if the policy has been issued and paid for.
Employment Practices Liability (EPLI)
Coverage that protects a business against claims by employees alleging wrongful acts such as discrimination, harassment or wrongful termination. It pays legal defense and settlements.
Endorsement (Rider)
A written amendment that adds, removes or changes coverage on an existing policy. It is also called a rider. Each endorsement becomes a legal part of the policy and may raise or lower your premium depending on the coverage it adjusts.
Endorsement (Rider)
A written change added to a standard policy that adds, removes, or adjusts coverage. Endorsements let you tailor a policy to your specific needs.
Exclusion
A specific situation, person, or type of damage that a policy does not cover. Reading the exclusions helps you understand exactly what is and is not protected.
Experience Modification Rate (EMR)
A factor used in workers’ compensation that compares your business’s claim history to others in your industry. A lower EMR means fewer claims and can lower your premium; a higher EMR raises it.
Explanation of Benefits (EOB)
A statement from your health insurer showing what a medical service cost, how much the plan paid, and how much you may owe. It is not a bill — it helps you understand your claim.
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Fidelity Bond
A fidelity bond is a type of insurance that helps protect a business from financial loss caused by dishonest acts of an employee, such as theft, fraud, or forgery. It is commonly used by employers to help cover losses related to employee dishonesty, although it is called a bond, not a regular liability policy.
First-Party vs. Third-Party Claim
A first-party claim is one you file with your own insurer for your own losses. A third-party claim is one filed against another person’s insurance because they caused your loss.
Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is an employer-sponsored account that lets an employee set aside pre-tax money to pay for certain eligible health care or dependent care expenses. In many cases, the money must be used within the plan year or a short grace or carryover period, depending on the employer’s plan rules.
Flood Insurance
Separate coverage for damage caused by flooding, which standard homeowners policies exclude. It is available through the National Flood Insurance Program (NFIP) and some private insurers, and is often required in high-risk flood zones.
FR-44
A certificate used in Florida and Virginia proving higher-than-minimum liability limits, usually after a DUI. It works like an SR-22 but requires higher coverage limits. Your insurer files it with the state and you must keep it active for the period the court or state orders.
Full Coverage
A common way to describe a policy that combines liability with comprehensive and collision coverage. It is not a single legal product, but the combination protects both other people and your own vehicle.
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Gap Insurance
Optional coverage that pays the difference between what you owe on a car and its value if it is totaled. It is useful when you finance or lease a new vehicle, because its value drops faster than the loan balance. Without it, you would pay that difference out of pocket after a crash or theft.
Garagekeepers Coverage
Garagekeepers coverage is a commercial auto insurance coverage that helps pay for damage to customers’ vehicles while they are in your care, custody, or control for parking, storage, repair, or service. It may apply if a vehicle is damaged by fire, theft, vandalism, collision, or other covered causes, depending on the policy terms and the type of coverage purchased.
General Liability Insurance
Business coverage that protects against claims of bodily injury or property damage your company causes to others, plus related legal costs. Many clients and landlords require it before you can work with them.
Glass Coverage
A part of comprehensive coverage that pays to repair or replace your windshield and windows. Some policies offer full glass coverage that waives the deductible for glass-only claims.
Grace Period
A short window after a premium due date during which the policy stays active if you pay. Its length varies by insurer and policy type. If you do not pay before it ends, coverage can lapse, creating a gap that makes new insurance harder to get.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a type of life insurance that does not require a medical exam and usually does not ask health questions. It is commonly available to older adults or people who may have trouble qualifying for other coverage, but it often has lower coverage amounts, higher premiums, and a waiting period before full death benefits apply for natural causes.
Guaranteed Replacement Cost
Guaranteed replacement cost is a homeowners insurance feature that helps pay to rebuild or repair a covered dwelling even if the cost is higher than the policy limit, up to the insurer’s terms and conditions. It is designed to protect against rising construction costs after a loss, but it may only apply if certain policy requirements are met and may not be available in every state or policy.
Guaranteed Universal Life (GUL)
Guaranteed Universal Life (GUL) is a type of permanent life insurance that is designed to provide coverage for a specified period, often up to a stated age such as 90, 95, 100, or 121, as long as the required premiums are paid. It focuses more on keeping the death benefit in force than on building cash value, so it usually has less cash accumulation than other universal life policies.
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Health Savings Account (HSA)
A tax-advantaged savings account you can use to pay qualified medical expenses. It must be paired with a high-deductible health plan (HDHP), and the money you contribute is tax-deductible.
High-Deductible Health Plan (HDHP)
A High-Deductible Health Plan (HDHP) is a health insurance plan that has a higher annual deductible than many other plans, so you usually pay more out of pocket before the plan starts to pay for covered services. These plans often have lower monthly premiums and may still cover certain preventive care before you meet the deductible, subject to plan rules.
Hired and Non-Owned Auto (HNOA)
Hired and Non-Owned Auto (HNOA) is a type of business auto insurance that helps protect a company if it is sued because of an accident involving a vehicle it does not own. It can apply to vehicles the business rents, leases, or borrows for work, as well as employees’ personal vehicles used for business purposes.
Hold Harmless Agreement
A hold harmless agreement is a contract in which one party agrees not to hold another party responsible for certain losses, injuries, or claims. In insurance and risk management, it is often used to shift liability between businesses, contractors, landlords, or event organizers, but it does not replace insurance coverage.
Homeowners Insurance
A policy that protects your home’s structure and belongings against covered risks like fire, theft, and certain storms, and includes liability protection if someone is injured on your property.
Hurricane Deductible
A separate, usually higher deductible that applies only to damage caused by a named hurricane. It is often a percentage of your home’s insured value rather than a flat dollar amount, and is common in coastal states like Florida.
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Indexed Universal Life (IUL)
Indexed Universal Life (IUL) is a type of permanent life insurance that includes a death benefit and a cash value component. The cash value can earn interest based in part on the performance of a chosen market index, subject to policy rules such as caps, participation rates, and floors, so it is not directly invested in the stock market.
Inland Marine Insurance
Inland Marine Insurance is a type of property insurance that helps protect movable property, tools, equipment, and certain goods while they are being transported or used away from a fixed location. Despite the name, it usually has nothing to do with the ocean; it is commonly used for items like contractor equipment, cargo, and specialized business property.
Insurable Interest
Insurable interest means you would suffer a financial loss if the person or property insured were damaged, destroyed, or lost. In most U.S. insurance policies, you must have this interest at the time the policy is bought, and in some cases when a claim happens, to make the coverage valid.
Insurance Binder
A temporary document that proves you have insurance coverage in place before the full policy is issued. It shows the key coverage details and is legally binding until the formal policy arrives.
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Lapse in Coverage
A period when you have no active insurance policy, often because a payment was missed or a policy was canceled. A lapse can lead to higher rates later and, for auto insurance, may violate state financial-responsibility laws.
Liability Coverage
Coverage that pays for injuries and property damage you cause to other people in an accident. It does not pay for your own injuries or vehicle. Most states require minimum liability limits by law.
Life Insurance Medical Exam
A basic health check — often blood, urine and vitals — that many life insurers require to set your rate. Some smaller “no-exam” policies skip it in exchange for a higher premium or lower coverage.
Living Benefits
Living benefits are policy benefits or policy features that let a person receive part of the insurance benefit while they are still alive, rather than only after death. In life insurance, this usually means accessing some of the death benefit early if the insured has a qualifying illness or condition, depending on the policy terms.
Long-Term Care Insurance
Long-term care insurance is a type of insurance that helps pay for extended care services when a person can no longer perform everyday activities on their own because of illness, injury, or cognitive decline. It may cover care in a nursing home, assisted living facility, adult day care, or at home, depending on the policy.
Loss Assessment Coverage
Loss assessment coverage is an optional homeowners insurance protection that can help pay your share of a covered loss assessed by a homeowners association or similar group. It is commonly used when damage to shared property, such as a roof, hallway, or clubhouse, leads the association to charge members for repairs or a deductible.
Loss of Use
The part of a homeowners or renters policy that pays for extra living expenses — like a hotel and meals — when a covered loss makes your home temporarily unlivable.
Loss Run Report
A Loss Run Report is a summary from an insurance company showing a policyholder’s past claims and losses over a specific period. It usually includes dates of loss, claim status, amounts paid, and reserves, and insurers use it to help evaluate risk and underwriting.
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MCS-90 Endorsement
The MCS-90 endorsement is a federal form attached to certain motor carrier liability policies. It helps ensure that a trucking company can pay for bodily injury or property damage to the public if an accident is caused by the carrier and the policy would otherwise not cover the claim, though the insurer may later seek repayment from the insured in some cases.
Medical Payments (MedPay)
Optional coverage that pays for medical bills for you and your passengers after a car accident, no matter who was at fault. It can also cover you as a pedestrian or in someone else vehicle.
Medical Referral
A written approval from your primary care doctor allowing you to see a specialist. Many HMO plans require a referral before they will cover specialist visits.
Mortgage Life Insurance
A life insurance policy designed to pay off your remaining mortgage balance if you die, so your family can keep the home. The benefit typically decreases as you pay down the loan.
Motor Truck Cargo Insurance
Motor truck cargo insurance helps cover a trucking business’s goods in transit if they are lost or damaged because of a covered event such as collision, theft, fire, or certain weather-related damage. It is commonly used by for-hire trucking companies that transport other people’s property and is different from liability coverage, which protects against damage the trucker causes to others.
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Named Driver Exclusion
A written agreement that removes a specific person from your auto policy. If that excluded driver uses your car and has an accident, the policy will not pay for the claim.
Named Insured
The person or business specifically listed on the policy declarations as the policyholder. The named insured has the broadest rights and responsibilities under the policy, such as making changes and filing claims.
Network (In-Network)
The group of doctors, hospitals, and pharmacies that have agreed to provide services at negotiated rates for your health plan. Using in-network providers usually costs you much less than going out-of-network.
No-Fault Insurance
A system used in some states where your own auto policy pays for your injuries after an accident, no matter who caused it. Florida is a no-fault state and requires Personal Injury Protection (PIP); Georgia is an at-fault (tort) state and does not use this system.
Non-Owner Car Insurance
A liability policy for people who drive but do not own a car. It provides liability coverage when you drive borrowed or rented vehicles, and is often used to keep continuous coverage or to file an SR-22.
Non-Renewal
When an insurer chooses not to continue your policy at the end of its term. Unlike a cancellation, it takes effect at renewal, and the insurer must usually give you advance written notice.
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Open Enrollment
The yearly window when you can enroll in or change a health insurance plan without needing a special qualifying event. Outside this window you generally need a life event like marriage or job loss to enroll.
Ordinance or Law Coverage
Coverage that helps pay the extra cost of rebuilding to current building codes after a covered loss. Standard policies may only pay to rebuild as-is, not to meet updated codes.
Other Structures Coverage
Part of a homeowners policy (Coverage B) that pays for damage to structures not attached to your house, such as a detached garage, fence, shed or gazebo.
Out-of-Network Provider
A doctor, hospital or clinic that does not have a contract with your health plan. Using one usually means higher out-of-pocket costs, and some plans may not cover it at all except in emergencies.
Out-of-Pocket Maximum
The most you have to pay for covered health services in a plan year. After you reach it, your insurance pays 100% of covered costs for the rest of the year.
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Payroll Audit
A payroll audit is a review of an employer’s payroll records by an insurance company or its representative, usually after a workers’ compensation policy period ends. The purpose is to confirm the correct final premium based on actual payroll, employee classifications, and other policy details.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) is a type of auto insurance coverage that helps pay certain medical expenses and, in some states, other related costs after a car accident, no matter who caused the crash. Depending on the state and policy, it may also help cover lost wages, essential services, or funeral expenses.
Personal Liability Coverage
Part of a homeowners or renters policy (Coverage E) that protects you if someone is injured on your property or you accidentally damage someone else’s property, paying legal costs and settlements up to your limit.
Personal Property Coverage
The part of a homeowners or renters policy that pays to repair or replace your belongings — furniture, electronics, clothing — if they are stolen or damaged by a covered event.
Policy
The written contract between you and your insurance company. It spells out what is covered, what is excluded, your limits, your deductible, and the premium you agree to pay.
Policy Lapse
A policy lapse happens when an insurance policy ends because the premium was not paid by the due date and any grace period expired, if one applies. Once a policy lapses, coverage usually stops until the policy is reinstated or a new policy is issued.
Policy Limit
The maximum amount your insurance will pay for a covered claim. Costs above the limit are your responsibility, which is why choosing adequate limits matters.
Premium
The amount you pay to keep your insurance policy active, usually monthly, every six months, or annually. Miss payments and your coverage can be canceled.
Premium Tax Credit
A government subsidy that lowers your monthly health insurance premium if you buy a plan through the Marketplace and your income falls within qualifying limits.
Premium Tax Credit (ACA Subsidy)
Government help that lowers your monthly Marketplace premium based on income and household size. It is called the premium tax credit and can be applied in advance each month or claimed at tax time. It is worth checking each year whether you qualify, since a change in income can affect the amount.
Prior Authorization
Approval you must get from your health plan before certain treatments, tests, or medications are covered. Without it, the plan may deny payment.
Product Liability
Coverage that protects a business if a product it makes or sells causes injury or property damage to a customer. It pays legal defense and settlements.
Professional Liability (E&O)
Coverage for financial harm caused by mistakes, negligence or bad advice in your professional services. Also known as Errors & Omissions (E&O), it protects consultants, agents, accountants and other professionals. It covers your legal defense and settlements even when the claim is groundless.
Professional Liability (E&O)
Also called Errors and Omissions insurance, it protects businesses and professionals against claims that their advice or services caused a client financial loss. It covers legal defense and settlements that general liability does not.
Property Damage Liability
The part of your auto liability coverage that pays for damage you cause to someone else property, such as their car, fence, or building. Georgia requires a minimum of $25,000 per accident.
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Rental Reimbursement
Optional coverage that pays for a rental car while your vehicle is being repaired after a covered claim, up to a daily and total limit you choose.
Renters Insurance
Coverage for people who rent their home. It protects your personal belongings, provides liability coverage if someone is injured in your unit, and can pay for temporary housing after a covered loss. It does not cover the building itself, which is the landlord responsibility.
Replacement Cost
A way of settling a claim that pays what it costs to buy a new item of similar kind and quality today, without subtracting for age or wear. It usually costs more than actual cash value coverage.
Return of Premium Rider
A return of premium rider is an optional add-on to some life insurance policies that pays back some or all of the premiums you paid if you outlive the policy term or meet the rider’s conditions. It usually does not return interest, and the refund may be limited to specific premium amounts or reduced by fees, loans, or other policy provisions.
Roadside Assistance
An optional coverage that helps you when your car breaks down: towing, flat-tire changes, jump-starts, lockout service and fuel delivery.
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Salvage Title
A legal designation given to a vehicle that an insurer declared a total loss. A salvage-title car is harder to insure and finance, and often only qualifies for liability coverage.
Scheduled Personal Property
Scheduled personal property is an insurance coverage option that adds specific protection for valuable items listed individually on a policy, such as jewelry, fine art, collectibles, cameras, or musical instruments. These items are usually scheduled by description and value, and the coverage may offer broader protection than the personal property coverage in a standard homeowners policy.
Special Enrollment Period (SEP)
A time outside Open Enrollment when you can buy a Marketplace plan after a qualifying life event such as losing coverage, marriage, moving or having a baby. It usually lasts 60 days from the event. Outside that window you would have to wait for the next Open Enrollment.
SR-22
Not an insurance policy, but a certificate your insurer files with the state to prove you carry at least the minimum required liability coverage. It is often required after serious violations like a DUI or driving without insurance.
Stop-Loss Insurance
Stop-loss insurance is coverage that protects a self-funded health plan from very large or unexpected claims. The plan sponsor pays claims up to a set limit, and the stop-loss policy may reimburse costs above that limit, helping reduce financial risk.
Sublimit
A sublimit is a smaller limit within a larger insurance policy limit that applies to a specific type of loss, coverage, or item. If a sublimit applies, the insurer will pay only up to that lower amount for that part of the claim, even if the overall policy limit is higher.
Subrogation
The process where your insurance company, after paying your claim, seeks reimbursement from the person or company that actually caused the loss. If successful, you may get your deductible back.
Surety Bond
A three-party agreement where a surety company guarantees that your business will fulfill an obligation or contract. Many contractors and licensed trades are required to carry one. It is a guarantee, not insurance for your own losses.
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Term Life Insurance
Life insurance that covers you for a set period — often 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive the death benefit. It has no cash value and is usually the most affordable type of life insurance.
Total Loss
When the cost to repair your vehicle is more than its actual cash value (or a percentage set by the insurer), the insurance company “totals” it and pays you its value instead of repairing it.
U
Umbrella Insurance
Extra liability coverage that kicks in after the limits of your auto or home policy are used up. It also covers some claims your base policies may exclude, protecting your savings and assets from large lawsuits.
Underinsured Motorist Coverage
Coverage that protects you when an at-fault driver has some liability insurance, but not enough to pay for all of your injuries or vehicle damage. It helps cover the gap up to your own limits.
Underwriting
The process an insurer uses to review your risk and decide whether to offer coverage and at what price. For life and health insurance it may include reviewing your health history, age, and lifestyle.
Uninsured Motorist Coverage
Uninsured/underinsured motorist coverage pays for your injuries (and sometimes damage) when the at-fault driver has no insurance or not enough to cover your losses.
Universal Life Insurance
A type of permanent life insurance with flexible premiums and a cash-value account that can grow over time. You can often adjust the payment and death benefit within limits.
Usage-Based Insurance (Telematics)
Usage-Based Insurance (Telematics) is an auto insurance program that uses driving data from a device or mobile app to help determine how a vehicle is used and, in some cases, how much a policyholder pays. The data may include mileage, time of day, speed, braking, and acceleration, depending on the insurer and program.
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Variable Universal Life (VUL)
Variable universal life (VUL) is a type of permanent life insurance that combines a death benefit with a cash value component. The policyholder can choose among investment options for the cash value, and both the policy value and the insurance coverage can change over time based on premiums paid, fees, investment performance, and policy performance.
Vicarious Liability
Vicarious liability is a legal responsibility that can be assigned to one person or organization for the actions of another person, even if the first party did not directly cause the harm. In insurance, this can matter when an employer, vehicle owner, or other party may be held liable for someone else’s negligence under certain legal relationships or circumstances.
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Waiting Period
A waiting period is the amount of time that must pass after a policy starts or after coverage is added before certain benefits become available. In some insurance policies, claims for specific services or conditions are not covered until this period ends.
Waiver of Premium Rider
A waiver of premium rider is an optional feature on some life or disability insurance policies that lets the insured stop paying premiums if they become seriously disabled or otherwise meet the policy’s qualifying condition. While the waiver is in effect, the policy usually stays active as long as the policy terms are met.
Waiver of Subrogation
A policy provision, often required by contract, in which your insurer gives up its right to recover money from a specific other party after paying a claim. It is common in commercial and construction contracts.
Water Backup Coverage
An optional endorsement that covers damage when water backs up through sewers or drains, or when a sump pump fails. Standard homeowners policies usually exclude this.
Whole Life Insurance
Permanent life insurance that lasts your entire life as long as premiums are paid. It combines a death benefit with a cash value that grows over time and can be borrowed against.
Workers' Comp Class Code
A Workers' Comp class code is a number assigned to a job or business activity to help an insurer group similar types of work for workers' compensation pricing. The code reflects the level of risk associated with the job duties, so an office worker and a roofer would usually be placed in different class codes.
Workers’ Compensation
Coverage that pays medical bills and lost wages for employees who are injured or become ill because of their job. In Georgia, most employers with three or more workers are required by law to carry it.
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