contact us1-800-SHELTER

Glossary


Additional Living Expenses Coverage

A coverage that will reimburse you for the reasonable increase in cost of living away from home, if your home becomes uninhabitable because of a covered loss.

Adjuster

An employee or independent contractor of the insurance company who investigates and settles claims on behalf of the insurance company.

Beneficiary

The person or persons who receive the payment of the insurance proceeds after the death of the insured.

Claim

A report of a loss to an insurance company.

Claimant

The person or group filing or reporting an insurance claim.

Collision Coverage

Helps fix or replace your vehicle due to an accident, whether you were at fault or not.

Comparable Value

The worth of the vehicle or part immediately before the accident. We base that determination on our knowledge of reasonable prices in the geographic area where you reside.

Comprehensive Coverage

Comprehensive coverage will help you pay to repair or replace your vehicle for most causes not covered by collision coverage. Examples include fire, flood, theft, hail damage, and falling objects.

Deductible

The part of the covered loss that the insured is obligated to pay. For example, let's say you have a $100 deductible in your policy, and you suffer a covered loss that costs $500 to repair. You are obligated to pay $100 and we will cover the remaining $400. If you have a higher deductible, you will usually have a lower premium, and vice versa.

Depreciation

A decrease in value of property over time. Property's value decreases over time from wear and tear or it can become obsolete. For example, if you paid $500 for a new television five years ago, its current market value may only be $125.

Direct Loss

A loss that is a direct consequence of a given peril. For instance, a refrigerator damaged by a power surge during a lightning storm is a direct loss, while food that spoils in the refrigerator because it is without power is an indirect loss.

Dwelling Coverage

Dwelling coverage applies to your private residence and any building structures that are attached to it. It also covers outdoor equipment permanently attached to your home and used to service your residence and its premises.

Endorsement

A form that alters the terms of a pre-printed policy and becomes part of the insurance contract.

Exclusion

A provision of an insurance policy that refers to hazards, circumstances, or property not covered by the policy.

Garaging Location

The place where you usually park your car. This is most often where you park your car when it is not in use, generally your primary residence.

Insured

Any person who is eligible for coverage through the insurance contract.

Lapse

Termination of a policy at the end of its contract term, often resulting from the failure to pay required renewal premium.

Liability — Bodily Injury Coverage

Pays for the injuries or the death of people involved in an accident for which the insured is legally liable. It does not cover bodily injury to the insured. Bodily injury liability coverage may also pay for legal costs in the event that you are sued.

Liability Coverage

Covers events where you are held legally responsible for bodily injury or property damage to others.

Liability — Property Damage Coverage

Pays for the cost of repairs or replacement to another person's property caused by an accident for which the insured is legally liable. It does not cover property not owned by you or a member of your household.

Limits

The highest amount that will be paid for a particular coverage for each covered loss, minus any applicable deductible. The limit is selected by you depending on your needs.

Loss Payee

A person or group that holds a financial interest in the insured auto or property and will be included in a loss payment or settlement.

Medical Payments Coverage

Helps pay reasonable medical and dental bills incurred in a covered loss, including funeral expenses.

Named Perils

Specific causes of loss named in and covered by a policy. If a loss occurs that is not listed on the policy, it is not covered.

Partial Loss

A loss that does not completely destroy or render the insured property useless or exhaust the applied insurance.

Policy

The contract between an insured and the insurance company that dictates the terms of coverage.

Premises

Premises are land and buildings, which together are considered as a property.

Premium

The amount you pay for an insurance policy.

Renewal

Continuance of coverage beyond the original term of the policy.

Restoration Cost

The amount of money it costs to restore the form and function of the damaged part of covered property. There are limitations and restrictions so you will have to consult your policy for details.

Rider

An attachment to the policy that provides additional benefits or coverage.

Surrender Value

The amount the policyholder will receive if he or she decides to exit the policy before maturity.

Total Loss

The complete destruction of the insured property, or damage so extensive that repair costs exceed the value of the property.

Underwriting

The process of evaluating risks for insurance and determining for what amount and on what terms the insurer will accept the risks.

Vehicle Identification Number (VIN)

A series of 17 numbers and letters that is used to identify the year, make, and model of a vehicle. It can usually be found on your vehicle registration, your title, or on the driver's side of the dashboard of your car.

Back to Top