Insurance Terms and Definitions

A Useful list of Insurance Terms and Definitions

The following list of insurance terms & definitions is to help consumers purchasing auto and other types of insurance, select coverage and understand the terms and conditions of the policy.

A
Actual Cash Value

Learn the definition and calculation of Actual Cash Value (ACV) in insurance, a term used to determine the value of an asset at the time of loss or damage.

Additional Coverages in Insurance

Discover what additional coverages are ine insurance and how they can provide extra protection for your property or liability.

Additional Insured Terminology

Understand the role of an additional insured in insurance policies, who can be added to a policy as an extra protected party.

Admitted Insurer Terminology

Learn about admitted insurers in insurance, companies that are licensed and authorized to sell policies in a specific state.

Aggregate Limit

Find out what an aggregate limit is in insurance and how it pertains to the maximum amount an insurer will pay for all claims whitin a specific time period.

Agreed Value Method

Learn about the Agreed Value method in insurance, a way to determine the value of a property before a less occurs.

B
Basic Named Perils

A binder is a temporary insurance contract that provides coverage until a formal policy is issued. Learn more about binders.

Binder in Insurance

A binder is a temporary insurance contract that provides coverage until a formal policy is issued. Learn more about binders.

Bonus Depreciation

Bonus depreciation is a tax incentive that allows real state investors to depreciate the cost of certain qualified property investments more quickly than they would be able to otherwise.

Broad Named Perils

Broad named perils coverage is a type of insurance policy that covers a wide range of risks and hazards. Learn more about broad named perils.

Broad Theft Coverage Endorsement

A broad theft coverage endorsement is an add-on to an insurance policy that expands the coverage to include more types of theft. Learn more about broad theft coverage endorsements.

C
Cash on Cash Return (CoC)

It measures the annual rate of return that an investor receives on the actual cash investment made in a property, expressed as a percentage.

Casualty Insurance

Casualty insurance is a broad category of insurance that covers losses from accidents, injuries, and other unexpected events. Learn more about casualty insurance.

Coinsurance Clause in Insurance

Learn about the coinsurance clause, which is a requirement in a property insurance policy that the insured maintain insurance on the property.

Coinsurance Penalty in Insurance

Understand the concept of coinsurance penalty, which is a penalty that an insurance company may impose on an insured for not maintaining insurace on a property.