Renters Insurance Glossary
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The monetary value needed to replace an item at the time of loss, subject to depreciation.
The person who calculates premium rates, risks, etc. for the pricing of insurance policies.
Coverage that provides reimbursement to the insured for costs incurred from hotel or motel stays, food, and other related costs during a time the insured’s residence becomes unlivable.
A property’s modified cost after an official has determined the value based on property renovations and/or depreciation.
A representative from the insurance company that evaluates the property along with insurance liability costs.
The maximum amount of money an insurance company will pay during a policy agreement.
A company representative that sells insurance policies.
A policy that covers the insured from most property damage caused by peril, except those specifically listed in the insurance agreement.
A person or company applying for an insurance policy.
The process where a property’s value and/or degree of damage is calculated, usually determined by an independent party.
A risk that requires liability obtained from the state due to it being too high to be accepted by the insurance market.
The legal tie to an insurance policy.
Being legally tied to an agreed upon policy.
A person that represents the insured when negotiating business from an insurance company.
Acronym for the Comprehensive Loss Underwriting Exchange: a database by LexisNexis® containing insurance claims history which allows insurance companies to access information regarding their consumers.
A notice that informs the insurance company of a disagreement between the filer against the insurance company.
A notice that informs the insured that their policy is subject to cancellation unless they renew their policy by a specific date.
An insurance provider.
Coverage for victim injuries (not including the insured), covered by liability insurance.
A request for payment to be granted according to the insured’s signed policy.
A person, aside from the insured, that makes a claim for payment due to a loss.
A person that determines the cause of a loss, whether the loss is covered by the insurance policy, the value of the loss, and how much of the loss is payable by the insurance policy.
A notice that informs the insurance company of a dispute between the filer against the insurance company.
The expectations, rights, and duties of the insured and the insurance company under the policy.
A legal agreement between two consenting parties.
A summary of your auto insurance coverage, the insurance provider’s information, the start and end dates of the coverage, and the coverages provided within the contract.
The payment threshold that the insured is responsible for before any payment is made from the insurance coverage.
A bill or policy that is overdue in payment or renewal.
A decrease in property value due to wear and tear or becoming obsolete.
A check that requires approval from the insurance company before being cleared at the bank.
An insurance policy that operates like a renters insurance policy to cover personal property and structural damage to a home, but does not provide liability coverage.
Coverage that is provided throughout the insurance policy period.
Coverage for loss of possessions and home damages incurred by an earthquake.
The age of a property based on an appraiser’s evaluation of the property’s condition and maintenance.
The start date of an insurance policy.
An amendment made to an insurance contract in order to alter the original terms.
A document that allows a third party to hold funds (to be used for purchasing property) until the agreed arrangements have been met.
The end date of an insurance policy.
An event, peril, or circumstance that is not covered in your insurance policy.
The FAIR Plan’s acronym stands for Fair Access to Insurance Requirements and is set in place by state to allow individuals to receive minimum insurance requirements when turned down by insurance companies due to their property being “high-risk.”
An employee of the insurance company that contacts insurance agents and brokers within a specific territory.
The cancellation of an insurance policy before the insurer has assumed liability, resulting in the insured getting his/her premium refunded since they were never covered under the policy.
Optional coverage for possessions that get moved. These are usually high-value items that may or may not be fully covered under standard renters insurance.
Coverage for loss of possessions and home damages caused by a flood.
A deliberate misrepresentation for gain.
A period in time (usually one month) in which a policy with an overdue balance remains in effect.
A renters insurance policy that is sold through a special group insurance trust or employment-based group wherein members are included in a master policy. The individuals involved receive certificates of coverage from the master group insurance plan.
An act, item, or occurrence that increases the chance of a loss.
A record of personal possessions for renters insurance purposes to ensure that policyholders purchased enough coverage and to swiftly process claims. This can include receipts, photographs, or video recordings of the belongings.
A benefit that automatically adjusts insurance limits to account for increases in costs to rebuild or repair a property.
A fee charged when making monthly installment payments of an insurance premium rather than paying the full term up front.
One or more payments made by the insured until the entire insurance premium is fully paid.
The insured’s concern for financial (or other) gain from keeping a damaged object or property. Also can apply to the life of a victim involved in the incident.
Coverage by contract wherein one party agrees to replace or reimburse another for loss under the terms of the agreement.
The company that provides the insurance policy and coverage.
The portion of an insurance policy that spells out what perils or hazards are covered by the insurance company.
Vindication of a complaint filed against an insurance company.
Coverage that covers the costs for damages to a residence and/or costs for medical bills due to an injury that occurred in the residence. Actual coverage will vary by provider.
A period of time when an insurance policy’s coverage was not in effect.
Coverage that protects the insured from financial loss from liability claims by transferring the financial burden to the insurance company.
The collection of information to determine the cause of an accident.
Coverage that pays the insured’s cost for food, housing and related daily needs after an incident of the home occurs.
Record of past insurance claims filed by the insured.
The method that insurance companies use to succeed in covering current losses out of a current premium.
The current value of your home/property, including the price of your land.
An insurance policy that covers multiple locations and/or properties.
An insurance policy that covers multiple locations and/or properties.
The manner used to determine the cost of an insurance policy using predetermined rates, usually from a manual.
All property damage related losses that are covered in your insurance policy.
A number issued by the National Association of Insurance Commissioners (NAIC) for each individual underwriting company.
A renowned U.S. non-profit organization dedicated to fight insurance fraud and other insurance-related crimes.
Failure to take reasonable care to protect others from potential harm.
An insurance policy that covers medical expenses, funeral expenses, loss of income, and other coverage regardless of who is at fault in an accident (only available in certain states).
A notification that states that insurance coverage will no longer continue after the agreement’s expiration date.
A loss that happens during a specific place and time or over a period of time.
Some renters insurance policies may exclude costs of repair or replacement of damaged property that requires upgraded materials according to current building codes. Standard policies might only cover the cost of repair/replacement according to the cost of the original grade materials, requiring the insured to pay the difference unless they have purchased additional coverage.
An insurance policy that contains multiple coverages that are available separately. Renters insurance is considered a package policy in most cases since standard plans include property, liability, and theft coverages.
The cause of a loss such as a collision, fire, or natural disaster.
Separate belongings that are not part of the structure of a residence, such as clothing and furniture.
Insurance that covers to replace belongings that have been damaged or destroyed within the rented residence.
Coverage that protects the insured from financial loss from liability claims by transferring the financial burden to the insurance company.
The insurance agreement and the expected coverage.
The maximum amount an insurance company will pay for a loss covered by the insurance policy.
Placing an insurance policy back into active status after a lapse in coverage.
An independent contractor that works for the insured to make sure he/she receives fair coverage for damages.
The amount of money charged by an insurance company to provide coverage.
A bill that provides the price and date due to continue insurance coverage.
The insurance policy that will respond first in the event that a loss is covered by more than one policy.
Cancelling a policy before its expiration and returning an amount of the premium to the policyholder proportional to the uncovered days of the policy. Also known as pro rata cancellation or short-rate cancellation.
Partial or full destruction of a residential or commercial property.
Coverage that pays for the property damage caused by the insured and any legal defense costs if the insured is sued.
The event that started the unintended events that led up to the loss.
The statement of an offer of an insurance premium that will be charged for the requested coverage.
The basic rating units used by insurers to calculate your final premium.
The determination of the cost of a premium based on risk characteristics and calculation of the chance of a loss.
Non-standard property coverage due to high risks related to the property.
The information that is transferred from one state to another.
When a policy is back in force without lapse after a cancellation or expiration.
A legally binding contract signed by a claimant or third party that dismisses the insurer of any liability or further liability of a specific claim.
An offer to continue insurance coverage beyond the policy’s expiration date.
When a policy is renewed past the expiration date, after a period without coverage.
A form of property insurance that protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, fire, or sewer backup damage, and pays for lost or damaged possessions. Renters insurance also protects the renter from liability if someone is injured on their property.
Insurance that reimburses the cost for the insured’s possessions that were lost or destroyed in the insured’s home.
A specific kind of renters insurance that insures for actual replacement cost rather than based on the calculation of the depreciated cash value or market value. Generally a costlier policy than the standard renters insurance agreement.
A policy that has been canceled and cannot be reinstated.
When the renters insurance provider voids a policy all the way back to the effective start date and returns all paid premiums back to the policyholder, as if no coverage existed at all.
A partial or full refund of a paid premium due to cancellation, rate reduction, or similar reasons.
The chance of loss to the insured that’s related to the insurance policy.
Valuables covered by a rider or additional purchased coverage on a standard homeowners insurance policy.
A specified amount that is less than the maximum limits on a renters insurance policy that applies to certain types of property or coverages, usually named on your policy.
An additional charge to a premium used to offset an increase of exposure that usually isn’t factored within normal rates.
The period of time wherein the insurance policy is issued and active.
The geographic location(s) used to determine insurance ratings.
An individual who accepts (or denies) insurance application and determines premium cost upon acceptance.
A policy that has been canceled and cannot be reinstated.
The amount of premium charged for a policy that has already become effective.