General
Policy Limit
What is a policy limit in insurance?A policy limit is the maximum dollar amount your insurance company will pay for a covered…
Glossary
Insurance terms, in plain language.
This is the one place on the site where insurance vocabulary is allowed to show up by name.
Last reviewed: June 2026. Updated regularly as new terms are added.
P
General
Policy Period
What is a policy period in insurance?The policy period is the specific window of time during which your insurance policy is a…
General
Premium
A premium is the price paid for insurance coverage: what the insurance company charges in exchange for the financial protecti…
General
Pro Rata Cancellation
Pro rata cancellation is a method of calculating the refund when an insurance policy is cancelled before the end of its term.…
Auto
Property Damage Liability
Property damage liability coverage pays for damage you cause to another person's property while operating a vehicle. This inc…
Q
General
Quote
What is an insurance quote?An insurance quote is a preliminary price offer from a carrier based on the information you provid…
R
General
Reinstatement
Reinstatement is the process of putting a cancelled or lapsed insurance policy back in force, restoring the original coverage…
General
Reinsurance
What is reinsurance?Reinsurance is insurance that insurance companies purchase for themselves. Just as an individual buys ins…
General
Renewal
What is a policy renewal in insurance?A renewal is the automatic continuation of your insurance policy for another term, typi…
General
Replacement Cost (RCV)
What is replacement cost in insurance?Replacement cost is a claims payment standard that gives you enough money to buy or reb…
General
Retroactive Date and Tail Coverage
Retroactive date and tail coverage are two concepts that only arise on claims-made insurance policies, primarily professional…
Auto
Ride-Share and Livery Exclusion
What is a ride-share exclusion in auto insurance?A ride-share exclusion is a clause in a standard personal auto insurance pol…
S
Home
Service Line Coverage
Service line coverage is an endorsement on a homeowners policy that pays for physical damage to the underground utility lines…
Auto
SR-22
What is an SR-22 in Georgia auto insurance?An SR-22 is a certificate of financial responsibility filed by your auto insurance…
General
Standard Market
The standard market refers to the mainstream segment of the insurance industry -- large, well-capitalized carriers that compe…
Auto
Stated Amount
A stated amount is a coverage option where you and the insurer agree on a fixed dollar figure for a vehicle or collectible at…
General
Sub-limit
A sub-limit is a specific dollar cap on a particular category of loss within a broader policy, setting a lower ceiling on cla…
General
Subrogation
What does subrogation mean in insurance?Subrogation is the legal right that allows your insurance company to step into your s…
Commercial
Surplus Lines Insurance
What is surplus lines insurance?Surplus lines insurance is coverage sold by carriers that are not licensed (admitted) in your…
T
Auto
Telematics
What is telematics in auto insurance?Telematics is the technology an auto insurer uses to price your policy based on how you…
General
Total Loss
What does total loss mean in insurance?A total loss is the point at which an insurer determines it is not economically feasib…
U
General
Umbrella Insurance
What is umbrella insurance?Umbrella insurance is personal excess liability coverage that extends above your auto and homeowne…
Auto
Underinsured Motorist (UIM)
What does underinsured motorist coverage mean in insurance?Underinsured motorist coverage (UIM) steps in when a driver who ca…
General
Underwriting
Underwriting is the process an insurance company uses to evaluate a risk, decide whether to offer coverage, and set the price…
Auto
Uninsured Motorist (UM)
Uninsured motorist coverage (UM) protects you when you are injured in an accident caused by a driver who has no auto insuranc…
W
What Are Rideshare Coverage Periods?
What Are Rideshare Coverage Periods? Rideshare coverage periods are a framework used by Uber, Lyft, and most state transporta…
What Is a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)?
What Is a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)? A collision damage waiver (CDW) and loss damage waiver (…
What is a DP-3 Dwelling Fire Policy?
What is a DP-3 Dwelling Fire Policy? A DP-3 dwelling fire policy (ISO DP 00 03) is the most comprehensive of three dwelling f…
What Is a Non-Owner Auto Policy?
What Is a Non-Owner Auto Policy? A non-owner auto policy is a personal auto liability policy for people who do not own a vehi…
What is a Sharing Economy Endorsement?
What is a Sharing Economy Endorsement? A sharing economy endorsement is an add-on to a standard homeowners insurance policy t…
What Is a Transportation Network Company (TNC)?
What Is a Transportation Network Company (TNC)? A transportation network company, commonly abbreviated TNC, is a platform tha…
What is Airbnb Host Liability Insurance?
What is Airbnb Host Liability Insurance? Airbnb Host Liability Insurance is actual insurance providing up to $1 million per s…
What is AirCover for Guests?
What is AirCover for Guests? AirCover for Guests is Airbnb's guest protection program, covering booking failures, listing mis…
What is AirCover for Hosts?
What is AirCover for Hosts? AirCover for Hosts is Airbnb's host protection program, launched in 2022. It bundles two legally…
What Is Contingent Collision and Comprehensive Coverage for Rideshare Drivers?
What Is Contingent Collision and Comprehensive Coverage for Rideshare Drivers? Contingent collision and comprehensive coverag…
What is Loss of Rental Income Coverage?
What is Loss of Rental Income Coverage? Loss of rental income coverage reimburses a property owner for rental income lost whi…
What Is Loss of Use in a Rental Car Accident?
Loss of use in a rental car context is the charge that a rental company imposes on the at-fault party for every day the…
What Is Occupational Accident Coverage for Gig Workers?
Occupational accident coverage is a type of policy that pays benefits to an independent contractor who is injured while perfo…
What Is Permissive Use in Auto Insurance?
Permissive use is the legal principle that allows a vehicle owner's auto insurance to extend coverage to someone who borrows…
What Is Supplemental Liability Insurance (SLI) from a Rental Car Company?
What Is Supplemental Liability Insurance (SLI) from a Rental Car Company? Supplemental liability insurance, abbreviated SLI,…
What is the Business Pursuits Exclusion in Homeowners Insurance?
What is the Business Pursuits Exclusion in Homeowners Insurance? The business pursuits exclusion is a provision in a standard…
What is the Difference Between Actual Cash Value and Replacement Cost?
Actual cash value (ACV) is what a damaged item is worth at the time of loss, after subtracting depreciation for age and condi…
What Is the Graves Amendment?
What Is the Graves Amendment? The Graves Amendment is a federal law - 49 U.S.C. § 30106, enacted August 10, 2005 as part of…
What is the ISO HO-3 Form?
What is the ISO HO-3 Form? The ISO HO-3 form (ISO HO 00 03 10 00) is the standard homeowners insurance policy published by…
What Is the Livery Exclusion in Auto Insurance?
What Is the Livery Exclusion in Auto Insurance? The livery exclusion is a provision in a personal auto policy that removes co…
What Is the Regular Use Exclusion in Auto Insurance?
What Is the Regular Use Exclusion in Auto Insurance? The regular use exclusion limits coverage under a personal auto policy w…
What is VRBO Liability Insurance?
What is VRBO Liability Insurance? VRBO's Liability Insurance Program provides $1 million per occurrence for third-party bodil…
Home
Wind and Hail Deductible
A wind and hail deductible is a separate, typically higher deductible that applies specifically to losses caused by windstorm…
Business
Workers Compensation and Experience Mod
Workers compensation is the mandatory insurance system that pays medical costs and a portion of lost wages to employees injur…