Also known as “Part D” and “Loss of Use” of your homeowner policy, this includes coverage that will pay for any out-of-pocket expenses you incur as a result of a covered claim. This is a coverage that you do not want to overlook if you own a home, condo, or investment property. This coverage can often go unnoticed, and it’s one you should think about. If a property loss occurs to your home and you must relocate during reconstruction, there should be enough coverage here to cover your out-of-pocket expenses for up to two years.

Forms, coverages and rates are filed and approved by the state, and therefore are insured by the state's guaranteed fund. If the insurer becomes insolvent, the state will pay the carrier’s claims on its behalf. As a consumer, you are not left without coverage if a catastrophe occurs. Policies will typically automatically renew each year.

Provides the broadest (best) coverage. Unless it’s specifically excluded, there is coverage. Also referred to as “open peril” coverage. You will want to look for “HO-5” on your homeowner policy which stands for homeowner-5. The high-net-worth market carriers automatically include open peril coverage.

This is the termination of the policy before the end of the policy term. This can be initiated by the insurance company or by the policy holder.

When a total loss occurs, the value home insurance policy offers the ability to take a cash settlement at full replacement cost if you choose not to rebuild the home. Without a high value home insurance policy, your insurance carrier may require you to rebuild. If a cash settlement happens to be offered, it would most likely be offered at a “depreciated” rate.

Insurance that protects you if injuries or damages to property occur to someone else. It is a form of risk financing to protect the assets imposed by claims made against you by a third party. It’s broad in nature and it’s also known as Liability Insurance. Examples include: An auto accident you are found at fault for and the other party has been injured; your dog bites someone; or you have a large house party and someone slips and falls.

Proof that you have an active insurance policy in place. This will show some information such as policy holder information and policy limits.

The ability to choose your own defense counsel (attorney representation) if a loss occurs. Not all insurance carriers provide this option.

A formal request to your insurance carrier to pay for something that has happened.

After a claim is made, an insurance company will assign an adjuster to represent you. They are responsible for investigating, processing and settling any claims made by or against you.

Insurance for a business. Types of commercial insurance include Business Owner Policy (BOP) or Commercial Package Policy (CPP).

Also known as a “Dec page.” It’s the first 2-3 pages of your insurance policy and includes information like effective dates, coverage and coverage limits, policy holder, carrier details, as well as added endorsements and some limitations. Consider it your insurance blueprint or coverage summary.

The amount you, the insured, is responsible for if a loss occurs. Generally, a higher deductible will reduce the cost of an insurance policy.

Frequently overlooked, how your carrier handles attorney fees and other expenses incurred while processing a claim made against you can make a big difference in your available coverage. Some insurance carriers will consider these fees "inside" your policy limit, meaning if you have a $10M limit and your defense costs are $2M, you're covered for $8M. Others consider them to be "outside", so they'll cover the full $10M regardless of how much is incurred in legal fees and other expenses.

Defense costs outside policy limits are recommended.

If your property (the thing being insured) has gone down in value over time, this may be taken into consideration should a payment be made, greatly reducing your payout.

Often an unpleasant surprise, including "guaranteed replacement cost" on your policy will help avoid this.

Provides coverage for the member and their family for private staff in the event of a wrongful employment act.

In the high-net-worth community, EPL coverage is needed for employed staff that work amongst family, homes, and offices.

Examples include: Nanny, Caretaker, Personal Assistant, Chef, Gardner, Captain, or Crew.

An amendment or special consideration made to a policy. This change can be used to add, delete, exclude, or alter coverage and can be made mid-term or included at renewal. A list of endorsements are typically included on the declaration page.

The part of an insurance policy that excludes coverage. There is no coverage. Exclusions can be found in the fine print of your insurance policy.

A condition or situation that presents a possibility of a loss.

Personal Umbrella or Excess insurance that is offered and managed by an affiliated group or employer. Participants benefit as the umbrella product, coverage and claims are elite, and can cost up to 50% less than purchasing independently. Organizations and affiliated groups benefit since it’s a coverage offered and administered by them. And, it’s a cost-effective benefit to their employees.

The cost to repair or replace is guaranteed after a covered loss even if the cost exceeds the policy limits. It’s the highest-level coverage and the best way to insure your home against any loss to your property. With this coverage, you can have peace of mind that it’s covered. All of it, the whole house.

A segment of the personal lines market space. Also referred to as “high-value home insurance” and “private client.” Insurance companies in this space become a market and provide solutions for properties that are insured at $750K or higher. Carriers in this space automatically include superior coverage, coverage limits, service, and white glove claim experiences as part of their offerings. Carriers include: Chubb, Pure, AIG, Cincinnati, Vault, and Berkley One.

Finished Living Area Square Footage includes all heated/cooled above ground finished living areas including any attic or half story. Additionally, this calculation includes any below ground heated/cooled finished basement or walk-out living area square footage that is finished to the same or higher level as the above ground primary living areas and looks like a continuation of the above ground finished living areas.

Additions or alterations made by a property owner or renter. If you have made an improvement, you will want to insure that upgrade.

An independent business that sells insurance. They represent multiple insurance carriers and offer a variety of insurance choices.

An endorsement added to a homeowner or property policy that automatically adds a percentage to the coverage over time. The coverage is designed to account for the year-over-year increase in the cost of labor and materials. The percentage applied is stated in the endorsement and can range.

Insurance that protects you if injuries or damage to property occur to someone else. It’s broad in nature and it’s also known as Casualty Insurance. It is a form of risk financing to protect the assets imposed by claims made against you by a third party. Examples include: An auto accident you are found at fault for and the other party has been injured; your dog bites someone; or you have a party at your house, and someone slips and falls.

An insurance policy that insures your life. The insurer promises to pay a sum of money outlined in the policy upon the death, or in some circumstances, due to critical or terminal illness. There are four main types of life insurance: Term, whole, universal, and variable.

The maximum amount of coverage the company will pay in the event of a covered loss. The limits of liability are shown on the declaration page.

Your prior claims history or driving record history. Claims frequency and severity will be considered as part of the underwriting process. While each carrier is different, a window of up to 3-6 years is typically looked at. If you have a loss, have you taken measures to mitigate future losses from happening? There are things you can do to help.

Also known as “Part D” of your homeowner policy, it includes coverage that will pay for any out-of-pocket expenses you incur as a result of a covered claim. This coverage can often go unnoticed and is one you will want to stop and think about. If a property loss occurs to your home and you must relocate during reconstruction, there should be enough coverage here to cover your out-of-pocket expenses for up to two years. Do not overlook this coverage if you own a home, condo, or investment property. Additional living expenses are included in the Loss of Use calculation.

Also known as an LPR. If you want to break up with your insurance carrier for whatever reason, a lost policy release must be signed by the named insured and submitted to your insurance carrier to formally cancel an active insurance policy. If you are wondering, do they really need to know? They do and ghosting is not an option.

The individual or individual(s) listed on the declaration page. They can be considered the “owner” of the insurance policy. Those listed are entitled to 100% of the benefits and coverages provided by a policy. If you own it, you will want to be listed. There are two types: First Named Insured and Second Named Insured.

Forms, coverages, and rates are not approved or guaranteed by the state. If you are placed with a non-admitted insurer and the carrier goes out of business, you are left on the hook and will need to pay out-of-pocket. Policies do not automatically renew each year, and fees are outside the policy premium. An example of non-admitted markets: Lloyds of London.

Insurance that is designed to protect directors or officers of nonprofit corporations. These individuals can be held personally liable if a lawsuit or wrongful act has been committed.

This optional endorsement provides additional coverage for liability arising out of any claim for any breach of duty, negligence, error, misstatement, or misleading statement, omission or act by the insured in his or her capacity as a director or officer of a not-for-profit organization. Coverage will cover the defense, settlements, and judgements.

If you serve on a nonprofit board of any kind, pay attention to this.

A notification received to let you know that your insurance coverage for a particular policy will not continue after the expiration date. Reasons can vary. You need to work with your insurance agent to find an alternative insurance market so coverage doesn’t lapse.

It’s covered unless it’s specifically excluded. Also referred to as “all risk” coverage and provides the broadest (and best) coverage.

Cause of loss. Examples may include collision, fire, or theft.

Insurance that is designed to cover individuals against a covered loss that results from loss of property, injury or sadly death. Types of personal lines products include homeowner, investment properties, auto, collections, watercraft, flood, and life insurance.

Also known as “Coverage C” on your homeowner policy. It’s your “stuff.” Take your place, turn it upside down, and shake it. If it falls out, it’s considered your personal property and should be included in the personal property limit. This coverage is subject to the policy deductible.

The amount of money charged by an insurance company to provide insurance coverage.

Reinsurance is insurance for insurance companies.

It’s a “transaction in which one party, the ‘reinsurer,’ in consideration of a premium paid to it, agrees to indemnify another party, the ‘reinsured,’ for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued. “

Reinsurance is a contract of indemnity between a reinsured and an insurer. In this contract the insurance company, (i.e. the cedent) transfers risk to the reinsurance company which assumes all or part of one or more insurance policies by the cedent.

Reinsurance may be used by insurers for many reasons, including:

-Expanding capacity

-Stabilizing underwriting results

-Financing

-Catastrophe protection

-Withdrawing from a line/class of business

-Spreading of risk and

-Expertise

The offer to continue an insurance contract beyond the expiration date. This should be automatic, just as long as you pay the bill.

A chance of a loss happening.

Fees added by your insurance carrier to your bill if set up on an installment plan. If you can, pay in full to save money.

Social inflation is a term that describes how claims costs are increasing above general economic inflation. The “social” aspect of the term represents shifting societal and cultural attitudes about who is responsible for absorbing risk (the insurer or the plaintiff). The varying demographic makeup of jury pools, an increasing public distrust of large corporations and high net worth individuals, and the influences of social media and legal marketing can all influence jury verdicts and awards. Nuclear verdicts, generally defined as jury verdicts exceeding $10 million in punitive and compensatory awards, are one of the largest contributors to social inflation.

Examples include:

-Increase in the number of jury award settlements. These are cases that make the news. Example: Jury awards $100M for injury/pain and suffering.

-Legal proceedings that take longer than reasonably expected.

-Rollback in tort reform that overturn statutory limits and non-economic damages.

When your insurance company goes after and recovers what is owed by an at-fault party on your behalf.

It doesn’t cover your property. It covers claims in excess of regular homeowner, automobile, and watercraft liability. It protects your assets, current and future wages, and other investments. It’s a separate policy that provides additional coverage and defense. Policy limits start at $1M. Everyone should have one.

Someone who has less liability coverage than is necessary to reimburse for damages due to a given accident. You can protect yourself and any household members with your own coverage. Consider increasing your underinsured auto limits to the maximum available and carrying an Umbrella or Excess policy with this coverage. You and your household members will be thankful you did.

Umbrella + excess optional coverage you should strongly consider. It provides excess coverage to uninsured and underinsured motorist bodily injury losses. It protects you and any household member.

Extra coverage that is added to your umbrella and excess policy.

This provides coverage for the insured's non-auto related bodily injury when the bodily injury is due to the negligence of another person who either has no personal liability insurance or not enough personal liability insurance to fully compensate the insured.

Similar to uninsured motorist coverage, it protects you and any household members for non-auto related accidents.

An individual who personally decides not to carry insurance protection. You can protect yourself from this with your own coverage. Consider increasing your uninsured limits to the maximum available and carrying an Umbrella or Excess policy with this coverage. You and your household members will be thankful you did.

A special classification of personal property you own (itemized or broken out by item) or blanketed (grouped together). Examples include jewelry, fine art, wine and spirits, and antiques. If it’s sentimental and valuable, schedule it. Your deductible does not apply.