Insurance terms that connect to something, not a glossary that ends at the definition.

Actual cash value, often shortened to ACV, is a method of valuing a covered loss that pays the replacement cost of the damaged item minus depreciation for its age, wear, and condition at the time of the loss. ACV is common in property coverage and is also commonly used to value totaled vehicles. Replacement cost coverage is widely used for homes and personal property, while standard auto policies generally do not promise to replace an older vehicle with a new equivalent unless special coverage applies. ACV generally pays less than replacement cost because it accounts for value the item had already lost before the loss.

A nonrenewal is an insurer's decision not to continue a policy when its term ends. Unlike a cancellation, which ends coverage mid-term, a nonrenewal takes effect at expiration. State laws set required notice periods and, in many states, require the insurer to give a reason.

Renewal is the process by which an insurance policy continues for another term, usually six or twelve months, after its current term expires. Renewal typically involves the insurer reviewing updated risk information, such as claims filed during the prior term, changes to the insured property, or broader rate changes, and issuing new terms that may include a different premium, adjusted coverage limits, or new exclusions. Policyholders generally have the option to accept the renewal terms, shop for a different insurer, or let the policy lapse.

Replacement cost value, often shortened to RCV, is a method of valuing a covered loss based on what it would cost to repair or replace the damaged property with a similar new item, without subtracting depreciation for age or wear. It generally results in a higher payout than actual cash value for anything that isn't brand new, and it typically costs more in premium since the insurer is agreeing to pay a larger amount for the same underlying loss.

Subrogation is the legal process by which an insurer, after paying a policyholder's claim, seeks to recover that payment from the party actually responsible for the loss, or from that party's insurer. Subrogation lets the insurer reimburse the policyholder quickly without waiting to determine fault, and then pursue reimbursement separately behind the scenes. If the insurer successfully recovers funds, the policyholder may also get back some or all of their deductible, depending on the outcome and the insurer's process.

An aggregate limit is the most a policy will pay in total for all covered claims during the policy period, regardless of how many claims there are. The NAIC glossary defines it as "the maximum dollar amount or total amount of coverage payable for a single loss, or multiple losses, during a policy period, or on a single project." It's common on business liability policies, alongside a per-occurrence limit that caps any single claim.

Agreed value is a method of valuing property in which the insured and the insurer agree in advance on the amount to be paid for a covered loss. In commercial property insurance, an agreed value option typically suspends the coinsurance clause for a set period, as long as the agreed amount is carried.

A business owners policy, commonly called a BOP, bundles general liability insurance and commercial property insurance into a single package policy designed for small and midsize businesses, and it typically includes business income (business interruption) coverage as well. It's typically priced and issued more efficiently than buying each coverage separately, and many insurers offer optional add-ons, such as equipment breakdown or cyber liability, that can be layered onto the base package. BOPs are generally available to lower-risk businesses like retail shops, offices, and small restaurants, while higher-risk or specialized operations often need coverage built individually instead.

Business personal property is the part of a commercial property policy that covers the movable things a business owns and uses, such as furniture, fixtures, machinery, equipment that isn't permanently installed, and inventory. It is separate from coverage for the building.

In commercial property insurance, coinsurance is a clause that reduces a claim payment when the property is insured for less than a required percentage of its value. The insurer pays in proportion to the amount of insurance carried divided by the amount required. It differs from coinsurance in health insurance, which is a cost-sharing percentage.

Commercial auto insurance, also called business vehicle or fleet insurance, covers vehicles owned and used by a business, including liability for injuries and damage the business's drivers cause. Personal auto policies typically exclude driving for business purposes, so business vehicles generally need commercial coverage.

Cyber insurance covers a business's costs and liability from cyber incidents such as data breaches and ransomware. First-party coverage pays the business's own costs, such as notification, legal fees, extortion payments and business interruption; third-party coverage pays for lawsuits and related costs from customers and others affected.

Debris removal coverage pays to remove debris left by a covered loss, such as the remains of a fire-damaged building, so repairs can begin. Property policies typically include it, often with a limit tied to the loss or an added amount.

Equipment breakdown coverage, historically called boiler and machinery insurance, pays for sudden mechanical or electrical breakdown of equipment such as boilers, refrigeration and HVAC systems, and electrical machines, which standard property policies often exclude.

Errors and omissions insurance, often shortened to E&O, is a form of professional liability coverage that protects a business or individual professional against claims that a mistake, oversight, or failure to perform professional services caused a client financial harm. Unlike general liability, which addresses physical injury or property damage, E&O specifically addresses financial losses tied to the quality or outcome of professional advice, services, or work product. It's commonly carried by consultants, accountants, real estate agents, insurance agents, and technology service providers, and is usually written as a claims-made policy.

Hired and non-owned auto coverage (HNOA) is business liability coverage for accidents involving vehicles the business doesn't own, such as employees' personal cars driven for work and cars the business rents. It generally pays for injuries and damage to others, not damage to the vehicle itself.

Inland marine insurance covers property that moves or is away from a fixed location, such as equipment taken to job sites, goods in transit over land, and property temporarily stored with others. Despite the name, it has nothing to do with the sea; it's the usual coverage for mobile business property.

An occurrence policy covers claims for events that happened during the policy period, even if the claim or lawsuit is filed after the policy has ended. It's the counterpart to a claims-made policy, which generally must be in force both when the event happened and when the claim is made.

Utility services coverage, often added by endorsement, extends property and business income coverage to losses caused by an interruption of utility service, such as electricity, gas or water, that originates away from the insured premises. Without it, many commercial property policies limit or exclude off-premises power failure.

Workers' compensation insurance covers medical expenses and a portion of lost wages for employees who are injured or become ill as a direct result of their job, regardless of who was at fault for the injury. In exchange for this coverage, employees generally give up the right to sue their employer directly over most workplace injuries, a legal trade-off often called the "compensation bargain." Requirements vary substantially by state, employer type, industry, and number of employees. Most states require many employers to provide coverage, but exemptions and thresholds differ, and Texas does not require most private employers to carry it.

An appraisal clause is a policy provision for settling disagreements about the amount of a covered loss. Each side hires an appraiser, the appraisers choose an umpire, and the umpire decides any difference. Appraisal resolves how much, not whether the policy covers the loss.

The duty to mitigate is a policyholder's obligation after a loss to take reasonable steps to protect property from further damage, such as temporary repairs. Policies typically include it among the duties after loss, and damage caused by failing to mitigate may not be covered.

A proof of loss is a formal statement a policyholder gives the insurer setting out the amount being claimed, usually signed and sworn to, with documents that support it. Policies set when one is required and by when. Under the National Flood Insurance Program, for example, FEMA describes it as "the policyholder's statement of the amount of money being requested, signed and sworn to by the policyholder."

A public adjuster is a licensed professional who represents the policyholder, not the insurance company, in negotiating and settling an insurance claim. Public adjusters typically inspect the damage, prepare or review the claim documentation, and negotiate directly with the insurer's own adjuster on the policyholder's behalf, usually in exchange for a percentage of the final claim settlement. This differs from the insurer's staff or independent adjuster, who works for and is paid by the insurance company, even though that adjuster is generally expected to evaluate the claim fairly.

Recoverable depreciation is the amount an insurer holds back from a replacement cost claim at first, and pays later once the damaged property has been repaired or replaced. The first payment is generally the repair cost minus depreciation and the deductible; the held-back depreciation is paid after the policyholder shows the work is done, usually within a time limit the policy sets.

A statute of limitations is a state law that sets a maximum time limit for filing a lawsuit or, in some contexts, a claim, after an incident occurs. Once that time limit passes, a court will generally refuse to hear the case regardless of its merits. In insurance, statutes of limitations can affect both a policyholder's ability to sue their own insurer over a denied or underpaid claim, and an injured party's ability to bring a claim against someone else whose liability insurance might otherwise respond. Time limits vary significantly by state and by the type of claim involved.

A beneficiary is the person or entity named in a life insurance policy to receive the death benefit when the insured person dies. A policy can name primary beneficiaries, who are paid first, and contingent beneficiaries, who are paid if no primary beneficiary can be found. If no beneficiary is named or found, the death benefit is paid to the insured's estate.

Cash value is the savings component of some permanent life insurance policies, such as whole life. Part of each premium goes into an account that grows over time at a fixed or variable rate. The policyholder may be able to borrow against it, withdraw from it, or receive it, less loans and fees, if they surrender the policy.

A children's term rider is an add-on to a parent's life insurance policy that provides term life coverage on the policyholder's children, usually for a small additional premium covering all eligible children. Insurers commonly require a child to be at least 14 days old, and coverage typically lasts until the child reaches an age such as 21 or 25.

The contestability period is the time, usually the first two years of a life insurance policy, during which the insurer can review the application and challenge or deny a claim if it finds material misstatements. After it ends, the insurer generally can't contest the policy's validity, except for nonpayment of premiums.

Decreasing term life insurance is term life coverage whose death benefit shrinks over the policy term, usually in one-year steps, while the premium typically stays the same. It is often matched to a debt that is paid down over time, such as a mortgage. Level term, by contrast, keeps the same death benefit for the whole term.

A free look period is a short window after a new life insurance policy or annuity is delivered during which the buyer can cancel it for any reason and get a full refund of premiums paid. The length is set by state law; in Texas it is at least 10 to 20 days, depending on the policy.

A grace period is a set time after a premium's due date during which you can still pay and keep the policy in force without interruption. For life insurance it is commonly 31 days. If the premium isn't paid by the end of the grace period, the policy can lapse.

Reinstatement is the process of restoring a life insurance policy that lapsed for nonpayment. It generally requires paying the overdue premiums with interest, and the insurer may ask for evidence that the insured is still insurable. Many insurers allow reinstatement within a set period, often up to five years.

Term life conversion, or convertibility, is a feature of many term life policies that lets the policyholder exchange the term policy for a permanent life policy without a new medical exam or health questions. Converting raises the premium, and insurers usually allow conversion only for a limited time, such as until age 65 or the end of a conversion period.

Term life insurance pays a death benefit if the insured person dies during a set period, such as 10, 20 or 30 years. Premiums generally stay level for the term and rise if the policy is renewed at the end of it. It has no cash value, which is why it typically costs less than permanent life insurance.

Universal life insurance is a type of permanent life insurance with a cash value account that generally earns a money market rate of interest. Once enough cash value has built up, the policyholder may be able to change the premium payments, and may be able to increase the death benefit after passing a medical exam.

Variable life insurance is a type of permanent life insurance that combines a death benefit with a cash value the policyholder can invest in options such as stocks, bonds and money market funds. The cash value, and in many policies the death benefit, rises or falls with how those investments perform. Variable universal life adds universal life's adjustable premiums.

Whole life insurance is a form of permanent life insurance that provides coverage for the insured person's lifetime as long as premiums are paid. It combines a death benefit with a savings element, called cash value, and in traditional whole life both the premium and the death benefit are typically designed to stay level for the life of the policy.

In disability insurance, the benefit period is the maximum length of time the policy will pay monthly benefits for a covered disability, such as two years, five years, to age 65 or for life. A longer benefit period costs more, while a shorter one lowers premiums but leaves the policyholder exposed if a disability lasts longer than the benefit period.

Disability insurance replaces a set portion of a person's income, up to a cap, if illness or injury keeps them from working. It comes in two main types: short-term disability, with benefits that start quickly and last for a limited time, and long-term disability, with benefits that start after a longer waiting period and can last years. It may be available through an employer or bought individually.

The elimination period is the number of days a person must be disabled before a disability insurance policy starts paying benefits. It works like a deductible measured in time: no benefits are paid for disability during the elimination period. Longer elimination periods generally mean lower premiums, and shorter ones higher premiums.

Long-term disability insurance replaces part of a worker's income, commonly about 60%, when an illness or injury keeps them from working for an extended time. Benefits generally begin after a longer elimination period, often when short-term benefits run out, and can last for years, to a set age such as 65, or for life, depending on the policy.

A non-cancelable disability insurance policy stays in force as long as premiums are paid, and the insurer can't change the benefits or the premium. A guaranteed renewable policy also can't be canceled while premiums are paid and keeps the same benefits, but the insurer may raise the premium for an entire class of policyholders.

Own-occupation disability insurance pays benefits if the insured can't perform the customary duties of their own occupation, even if they could work in a different job. Any-occupation coverage pays only if the insured can't perform any job suitable for their education and experience. Some policies use own-occupation for an initial period, such as two or three years, and then switch to any-occupation.

A residual disability benefit pays a partial disability benefit when an illness or injury reduces a person's income but doesn't stop them working altogether, such as when they return part-time. It's based on the loss of income. Some policies include it as a standard feature; others add it by rider, and some pay it without requiring an initial period of total disability.

Short-term disability insurance replaces part of a worker's income for a limited period when illness, injury or recovery, such as after surgery or childbirth, keeps them from working. Benefits generally start after a short waiting period and last from a few weeks to several months. It's often provided through employers, and a few states run their own temporary disability programs.

Social Security Disability Insurance (SSDI) is a federal program that pays monthly benefits to people with a disability or blindness that affects their ability to work for a year or more, or is expected to result in death, and who have enough work history. Benefits are based on past earnings, and recipients become eligible for Medicare after two years of entitlement.

A benefit schedule is a list in some pet insurance policies that sets the maximum amount the insurer pays for specific treatments or services, regardless of what the veterinarian charges. Other policies cap payments at usual-and-customary fees, based on prevailing veterinary charges. Either way, the payout can be less than the actual bill.

In pet insurance, a hereditary disorder is an abnormality genetically passed from parent to offspring that may cause illness or disease, such as hip dysplasia in some breeds. A congenital anomaly or disorder is a condition present from birth, whether inherited or caused by the environment. Policies may cover, limit or exclude them.

In pet insurance, an orthopedic condition is one affecting the bones, skeletal muscle, cartilage, tendons, ligaments or joints, including elbow and hip dysplasia, intervertebral disc degeneration, patellar luxation and cranial cruciate ligament rupture, but not cancers or metabolic, hematopoietic or autoimmune diseases. Policies often set a separate waiting period for orthopedic conditions not caused by an accident.

Pet insurance is an insurance policy that helps pay veterinary expenses for a covered pet's accidents, illnesses or both, including medical advice, diagnosis, treatment and prescribed drugs, depending on the policy. Most policies reimburse the policyholder after the vet is paid, subject to a deductible, a reimbursement percentage or benefit schedule, limits and exclusions such as pre-existing conditions.

In pet insurance, a pre-existing condition is a condition for which, before the policy took effect or during a waiting period, a veterinarian gave medical advice, the pet received treatment, or verifiable sources show the pet had signs or symptoms directly related to the claimed condition. Pet insurers commonly exclude such conditions, with disclosure.

The reimbursement rate is the percentage of a covered veterinary bill a pet insurer pays back, such as 70%, 80% or 90%, after the deductible and up to the policy's limits. The policyholder pays the remaining percentage, which works like coinsurance. Some policies instead pay from a benefit schedule or usual-and-customary charges.

A veterinary discount plan is a membership service, not an insurance policy, in which a member pays a fee and receives reduced rates on pet services, procedures, prescriptions and products from a group of participating veterinarians. It doesn't pay claims, and Triple-I notes that, unlike pet insurance, such plans aren't regulated by insurance law.

A pet wellness program is a subscription or reimbursement-based program, separate from an insurance policy, that provides goods and services to promote a pet's general health, such as exams, vaccinations and preventive medication. In states with the NAIC model law, its cost and terms must be separate from pet insurance, and buying one can't be required to buy insurance.

A binder is a temporary insurance agreement that provides coverage until the insurer writes or delivers the full policy. It is commonly used when coverage needs to start right away, such as at a home closing or when buying a car, and it lasts for a specified period.

A CLUE report, from the Comprehensive Loss Underwriting Exchange, is a record of insurance claims tied to a person or property, which many insurers check when deciding whether to offer a policy and what to charge. Consumers can request their own report once a year at no cost.

A coverage limit is the maximum amount an insurer will pay out under a specific part of a policy, whether for a single claim, a policy period, or the lifetime of the policy, depending on how the policy is structured. Limits can apply to an entire policy or separately to specific coverage types within it, such as a distinct limit for liability and a different one for medical payments. Once a covered loss exceeds the applicable limit, the policyholder is generally responsible for the remaining amount.

The declarations page is the summary page of an insurance policy, usually the first page. It lists who and what is insured, the policy period, each coverage with its limit, the deductibles, the premium, and the forms and endorsements that make up the policy. It summarizes the policy; the full policy wording, including its definitions, conditions and exclusions, decides how a claim is handled.

A deductible is the amount a policyholder must pay out of pocket toward a covered loss before the insurer pays the remaining amount, up to the policy's coverage limit. Deductibles can be a flat dollar amount, like $500 or $1,000, or a percentage of the insured value, common on some homeowners policies for certain perils. Choosing a higher deductible generally lowers the premium, since the policyholder is absorbing more of the small-to-moderate losses themselves.

An endorsement is a written change to an insurance policy that adds, removes or adjusts coverage. The NAIC's glossary defines it as "an amendment or rider to a policy adjusting the coverages and taking precedence over the general contract." Endorsements are attached to the policy and listed by form number on the declarations page, and they can broaden coverage, narrow it, or change a limit or deductible.

An exclusion is a specific situation, cause of loss, or type of property that a policy explicitly states it will not cover, even if the loss otherwise resembles something the policy generally protects against. Exclusions are written into the policy document itself and are one of the main reasons a claim can be denied even when the policyholder believed they were covered. Common categories include flood, earthquake, normal wear and tear, intentional acts, and business activities conducted from a personal policy.

Medical payments coverage pays medical bills after an accident, without needing to prove fault, up to a small limit. On an auto policy it generally pays medical bills for you and your passengers. On a homeowners policy it generally pays medical bills for guests hurt on your property, and some injuries your household causes elsewhere.

The named insured is the person or entity specifically identified on a policy's declarations page as the party the insurer has agreed to cover. Being the named insured typically carries broader rights under the policy than being an "additional insured" or a household member covered incidentally, including the right to make changes to the policy, receive official notices, and, on many policies, file claims directly. A policy can have more than one named insured, such as spouses jointly named on a homeowners policy.

A peril is a cause of loss, such as fire, theft or wind. A named perils policy covers only the causes of loss it lists. An open perils policy, also called all-risk, covers any cause of loss the policy doesn't specifically exclude. The difference decides who has to point to the policy wording: under named perils, the loss has to match a listed peril; under open perils, it's covered unless an exclusion applies.

A premium is the amount a policyholder pays an insurer, usually monthly, quarterly, or annually, to keep a policy active. It is set by the insurer based on assessed risk factors specific to the person or property being insured, and it is one of two central prices in any policy, the other being the deductible owed if a claim is filed. Premiums can stay fixed for a policy term and then be recalculated at renewal based on updated risk information, claims history, and broader pricing trends across the insurer's book of business.

A sublimit is a smaller cap inside a coverage's overall limit that applies to a particular type of property or loss. On homeowners and renters policies, sublimits, often called special limits, commonly apply to jewelry, art, cash and similar items. The sublimit is the most the policy pays for that category, even when the overall limit has plenty of room left.

Underwriting is the process an insurer uses to evaluate the risk of insuring a person, property, or business, and to decide whether to offer coverage and at what price. Underwriters review factors relevant to the type of insurance, such as driving history, a home's age and condition, claims history, credit history where state law allows it, health history for life insurance, or business operations, and use that information to set premiums, apply exclusions, or in some cases decline coverage entirely. Underwriting can happen when a policy is first issued and again at renewal.

A waiting period is the time between buying a policy, or a coverage, and when it starts to apply. Flood insurance through the National Flood Insurance Program generally has a 30-day waiting period, with exceptions, so it can't be bought at the last minute before a storm.

Bodily injury refers to physical harm, sickness, or death suffered by another person as a result of an accident or incident for which a policyholder may be held legally responsible. In liability insurance, bodily injury coverage typically pays for the injured party's medical expenses, lost income, pain and suffering, and related legal costs, up to the policy's stated limit. Auto policies commonly express this as a bodily injury liability limit, often shown as two numbers, such as $100,000 per person and $300,000 per accident.

A claims-made policy provides coverage for claims that are both first made against the policyholder and reported to the insurer while the policy is active, regardless of when the underlying incident actually occurred, as long as that incident happened on or after the policy's retroactive date. This differs from an occurrence policy, which covers an incident based on when it happened rather than when the claim was filed. Claims-made policies are common in professional liability and errors and omissions coverage, where problems often surface well after the work was done.

General liability insurance covers claims that a business's operations, products, or premises caused bodily injury, property damage, or certain types of advertising or personal injury to a third party. It typically pays for the injured party's medical bills or property repair costs, as well as the business's legal defense costs, up to the policy's limits, even if the claim is ultimately found to be without merit. It's often the foundational liability coverage for a small business, frequently bundled with property coverage into a business owners policy.

Umbrella insurance is a separate policy that provides additional liability coverage above the limits of an underlying policy, such as auto, homeowners, or a business's general liability policy, once that underlying limit is exhausted. It typically also covers some liability claims not covered by the underlying policies at all, within its own terms. Umbrella policies are usually sold in increments, often starting around $1 million, and are relatively inexpensive relative to the amount of added protection they provide.

Cancel for any reason (CFAR) is an optional add-on to trip cancellation coverage that lets a traveler cancel for a reason not listed in the policy and recover a percentage of prepaid, nonrefundable costs. It costs more than standard coverage, usually must be bought within a set time after booking, requires insuring all prepaid costs, and requires canceling before a deadline.

A cancellation waiver is a fee-based product sold by a cruise line, tour operator or travel company that lets a traveler cancel and receive some refund or credit under the seller's terms. It isn't insurance, so it isn't regulated by state insurance departments, and if the seller has financial trouble, the traveler may not be able to collect.

Medical evacuation coverage, part of emergency medical assistance in travel insurance, reimburses the cost of emergency transportation to an adequate medical facility in the region, and in some cases transportation home, when a traveler is seriously ill or injured. Some policies also cover repatriation of remains if a traveler dies.

A pre-existing condition waiver is a provision in some travel insurance policies that removes the policy's exclusion for pre-existing medical conditions, if the traveler meets its conditions, commonly buying the policy within a set period after making the first trip deposit and insuring the full nonrefundable trip cost.

Trip cancellation insurance reimburses prepaid, nonrefundable travel expenses, such as airfare, hotels and tours, when the traveler can't take the trip for a reason listed in the policy. Covered reasons commonly include serious illness, injury or death of the traveler or a family member, severe weather, carrier or tour operator problems, and some legal obligations.

Trip interruption coverage reimburses unused, prepaid nonrefundable travel costs, and often extra costs to return home, when a trip is cut short for a reason listed in the policy, such as the traveler's or a family member's illness or death, severe weather or a tour operator's default.

COBRA continuation coverage, under the federal Consolidated Omnibus Budget Reconciliation Act, lets workers and their families keep group health benefits for a limited time after events like job loss, reduced hours, death or divorce. It generally applies to employers with 20 or more employees, and the person may have to pay the entire premium, up to 102% of the plan's cost.

In health insurance, coinsurance is the percentage of the allowed cost of a covered service that the member pays, such as 20%, generally after meeting the deductible. The plan pays the remaining percentage. Coinsurance applies until the member reaches the plan's out-of-pocket maximum, after which the plan generally pays 100% of covered in-network costs for the rest of the plan year.

A copayment, or copay, is a fixed dollar amount a health plan member pays for a covered service, such as $20 for a doctor visit, with the plan paying the rest of the allowed amount. Depending on the plan, copays may apply before or after the deductible is met, and they can differ by type of service, such as office visits, specialists, lab tests and prescriptions.

Essential health benefits are 10 categories of services that all Marketplace health plans must cover: outpatient care, emergency services, hospitalization, pregnancy and newborn care, mental health and substance use disorder services, prescription drugs, rehabilitative and habilitative services, lab services, preventive and wellness care and chronic disease management, and pediatric services including children's dental and vision.

A health savings account (HSA) is a tax-advantaged savings account used to pay for qualified medical expenses. Contributions can generally be made only by people enrolled in an HSA-eligible high deductible health plan (HDHP). Funds can pay deductibles, copayments, coinsurance and other qualified expenses, generally not premiums, and the account's interest or other earnings aren't taxable.

A health maintenance organization (HMO) is a type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO. It generally won't cover out-of-network care except in an emergency, and it may require members to live or work in its service area. Many HMOs require a primary care doctor's referral to see a specialist.

The Open Enrollment Period is the yearly window when people can enroll in, renew or change a health insurance plan without a qualifying life event. On the federal Health Insurance Marketplace it runs from November 1 to January 15, with December 15 the last day to enroll for coverage starting January 1. Employer plans set their own open enrollment periods.

The out-of-pocket maximum, or out-of-pocket limit, is the most a health plan member has to pay for covered, in-network services in a plan year. Deductibles, copayments and coinsurance count toward it; once it is reached, the plan pays 100% of the costs of covered in-network benefits for the rest of the plan year. Premiums, non-covered services and out-of-network care generally don't count toward it.

A preferred provider organization (PPO) is a type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers. Members pay less when they use in-network providers, and can use providers outside the network for an additional cost. PPOs generally don't require referrals to see specialists.

Prior authorization, also called preauthorization or precertification, is approval from a health plan that may be required before a member gets a service or fills a prescription, in order for it to be covered. Plans commonly require it for certain surgeries, imaging, specialty drugs and hospital stays. Without it, the plan may refuse to pay even for a service it would otherwise cover.

A provider network is the group of facilities, providers and suppliers a health insurer or plan has contracted with to provide health care services. In-network providers have agreed to the plan's negotiated rates. Care from out-of-network providers may cost the member more or, in some plan types, may not be covered except in an emergency.

A Special Enrollment Period is a time outside the yearly Open Enrollment Period when a person can enroll in or change health insurance because of a qualifying life event, such as losing other coverage, moving, getting married, or having or adopting a child. For most events on the Marketplace, the window is 60 days.

The Summary of Benefits and Coverage (SBC) is a short, plain-language document that insurers and job-based health plans must provide, in a standard format, describing a plan's costs and coverage. It comes with a Uniform Glossary and includes coverage examples showing what the plan would pay in two common situations: diabetes care and childbirth.

Collision coverage is the part of an auto policy that pays to repair or replace your own car after it hits another vehicle or an object, or overturns, generally regardless of who was at fault, less your deductible. It's optional under state law, though lenders and lessors usually require it on a financed or leased car.

A combined single limit (CSL) is one total liability limit per accident that applies to bodily injury and property damage together, instead of separate split limits. Several states accept a CSL in place of their split minimums, such as $125,000 in Maine or $75,000 in Rhode Island.

Comprehensive coverage is an optional part of an auto policy that pays for damage to a policyholder's own vehicle from causes other than a collision with another vehicle or object. Common covered events include theft, vandalism, fire, falling objects, hail and other weather damage, and hitting an animal. It's typically subject to its own deductible, separate from collision coverage. Collision and comprehensive generally aren't required by state law, but a lender or lessor may contractually require them while a vehicle is financed or leased.

A financial responsibility law requires drivers to be able to pay for damage or injuries they cause in a car accident, up to set minimum amounts. Most states meet this through compulsory liability insurance; some allow alternatives such as bonds or deposits, and New Hampshire does not require insurance but requires proof of ability to pay.

"Full coverage" is an informal term, not a type of auto policy. It usually means a policy with the liability coverage a state requires plus collision and comprehensive coverage, which pay for damage to the policyholder's own car. Lenders and lessors commonly require collision and comprehensive on financed or leased cars. What it includes beyond that varies by insurer and state.

Gap insurance covers the difference, or "gap," between what a vehicle is actually worth at the time of a total loss and what the owner still owes on their auto loan or lease. Because vehicles typically depreciate faster than most loan or lease balances shrink in the early years, a total loss can leave the owner owing more than their standard auto policy's actual cash value payout, and gap insurance is designed specifically to cover that remaining balance.

No-fault auto insurance is a system in which each driver's own policy pays for their injuries after a crash, regardless of who caused it, usually through personal injury protection (PIP). Lawsuits against the at-fault driver are restricted unless the injury meets a threshold set by state law.

Non-owner car insurance is a liability policy for someone who doesn't own a car but drives borrowed or rented cars. It pays for injuries and damage the driver causes to other people, generally after the car owner's insurance, and it doesn't pay for the driver's own injuries or for damage to the car being driven.

Personal injury protection, or PIP, is auto coverage that pays medical bills for you and your passengers after an accident, and also some non- medical losses such as lost wages, generally regardless of fault. Whether it's required, offered by default or optional depends on the state.

Property damage liability is the part of an auto policy that pays for damage you cause to other people's property, such as their car, a fence or a building, when you're at fault, up to the property damage limit. It's the third number in a split limit such as 30/60/25 and is required in most states.

Rental reimbursement coverage is an optional auto coverage that pays for a rental car, up to daily and total limits, while your car is being repaired after a covered loss or after it's stolen. Some policies also pay for taxis or ride-hailing instead.

An SR-22 is a certificate that an auto insurer files with a state to prove a driver carries the required liability insurance. States typically require one after certain violations, such as driving uninsured or some serious offenses, for a set period. It is not a type of insurance itself.

Stacking is a way of combining uninsured motorist limits across more than one insured vehicle, so the amount available for one claim is multiplied by the number of vehicles or added together across policies. Whether it's allowed depends on state law and policy wording.

Towing and labor coverage is an optional auto coverage that pays to tow a car that can't be driven and for roadside labor such as changing a flat tire or jump-starting a battery, up to a small dollar limit per occurrence.

Uninsured motorist coverage pays for a policyholder's injuries, and in some states property damage, when they're hit by a driver who has no liability insurance at all. A closely related coverage, underinsured motorist coverage, applies when the at-fault driver has some insurance but not enough to cover the full cost of the damage. Many states require or default to offering this coverage, since a meaningful share of drivers on the road carry no insurance despite legal requirements to do so.

Dwelling coverage is the part of a homeowners or landlord insurance policy that pays to repair or rebuild the physical structure of the home itself, including its walls, roof, and attached structures like a garage, after a covered loss such as fire, wind, or falling objects. It's typically set as a specific dollar limit chosen when the policy is written, ideally based on estimated rebuilding cost rather than the home's market value, since those two figures can differ significantly.

Earthquake insurance is coverage, sold as a separate policy or an endorsement, for damage caused by earthquakes, which standard homeowners and renters policies don't cover. It typically has a percentage deductible, much higher than a typical homeowners deductible: the Insurance Information Institute puts it at 5% to 15% of the policy limit, and the NAIC at 2% to 20% of the insured value, depending on location.

Extended replacement cost is homeowners coverage that pays a set percentage above the dwelling limit, such as 20% or more depending on the insurer, if rebuilding costs more than the limit. It's designed for unexpected cost increases, such as after a widespread disaster when materials and labor are scarce.

Guaranteed replacement cost is homeowners coverage, offered by some insurers, that pays whatever it costs to rebuild the home as it was before a covered loss, even if that exceeds the dwelling limit. It generally doesn't cover building code upgrades, and may not be available for older homes.

An inflation guard is a homeowners policy provision or endorsement that automatically raises the dwelling limit, typically at each renewal or annually, to keep pace with rising construction costs. It helps prevent underinsurance but may not match sharp local cost increases.

Insurance to value means insuring a home for a high enough share of its replacement cost, often at least 80%, as many insurers require. A policy that falls short of the required share can pay less on a claim, depending on its terms, even when the damage is partial.

Loss of use coverage, sometimes called additional living expenses coverage, pays for the extra cost of living elsewhere while your home is being repaired or rebuilt after a covered loss makes it temporarily uninhabitable. It typically covers costs like a hotel or short-term rental, extra restaurant meals or food storage costs, and other verified expenses beyond your normal cost of living, usually up to a limit or for a set period of time defined in the policy.

Mold coverage refers to how a homeowners policy treats mold damage and removal. Policies commonly exclude mold removal except when the mold results from a covered loss, such as a sudden burst pipe, and some limit even that. Additional mold coverage may be available as an endorsement.

A mortgagee clause is a provision in a property policy that names the lender (the mortgagee) and protects its interest in the property. Because of it, claim payments for damage to the home are typically made out to both the homeowner and the lender, and the lender is generally notified if the policy is cancelled.

Ordinance or law coverage pays the extra cost of repairing or rebuilding a damaged home to meet building codes or other laws in force at the time of the repair, when those requirements are stricter than when the home was built. It's generally added by endorsement or included with a limited amount, depending on the policy.

Other structures coverage is the part of a homeowners policy that pays to repair structures on the property that aren't attached to the house, such as detached garages, sheds and fences, after a covered loss. Its limit is often about 10% of the dwelling limit and is shared by all such structures.

Personal liability coverage is the part of a homeowners or renters policy that pays when you're legally responsible for injuring someone or damaging their property, including medical bills, lost wages and court costs, up to its limit. It generally applies to accidents at home and many elsewhere, but not to business activities or car accidents.

Personal property coverage is the part of a homeowners or renters policy that pays when your belongings, such as furniture, clothing and electronics, are stolen, damaged or destroyed by a covered cause. On homeowners policies its limit is often a percentage of the dwelling limit, and special limits apply to some categories.

Scheduled personal property is coverage for specific, listed valuables, such as jewelry, art or instruments, added to a homeowners or renters policy by endorsement or bought as a floater, each insured for its appraised value. It generally removes the policy's special limits for those items and often covers losses a standard policy doesn't, such as mysterious disappearance.

Sinkhole coverage pays for structural damage caused by sinkhole activity. In Florida, all property insurers must cover catastrophic ground cover collapse, a narrowly defined event, and must offer broader sinkhole loss coverage for an additional premium. Outside Florida, sinkhole damage is generally excluded as earth movement unless added.

Water backup coverage is an optional endorsement added to a homeowners, condo, or renters policy that pays for damage caused by water or sewage backing up through a drain, sewer line, or a failed sump pump, rather than entering the home from an outside flood source. It fills a gap left by both standard homeowners policies, which typically exclude this type of damage, and separate flood insurance, which generally covers rising water from outside the home rather than backup from interior plumbing systems.

Flood insurance is a separate policy that covers damage from flooding, which most homeowners policies exclude. In the United States it's available through the National Flood Insurance Program, run by FEMA, and from private insurers. NFIP building coverage goes up to $250,000 and contents coverage up to $100,000.

Increased Cost of Compliance is a coverage within National Flood Insurance Program policies that helps pay to bring a flood-damaged building into compliance with the community's floodplain management rules, such as by elevating it, up to $30,000, when the community determines the building is substantially or repetitively damaged.

A special flood hazard area (SFHA) is a high-risk flood area on FEMA's flood maps, labeled with zones beginning with A or V. In communities participating in the National Flood Insurance Program, flood insurance is required for properties in an SFHA with government-backed mortgages.

Landlord insurance is a property policy for a home rented to tenants, generally covering the structure, the landlord's property left on site, liability, and often lost rental income after a covered loss. It doesn't cover the tenant's belongings. It's sometimes called a dwelling fire policy, and typically costs more than a homeowners policy.

Medicare Advantage, sometimes called Part C, is an alternative to Original Medicare in which beneficiaries get Medicare benefits through a private health plan approved by Medicare. These bundled plans include Part A, Part B and usually Part D, may require using the plan's network and prior authorization, usually have a yearly out-of-pocket limit, and often offer extra benefits such as vision, hearing and dental.

The Medicare Initial Enrollment Period is the first chance to sign up for Medicare Part A and Part B. It lasts 7 months, starting 3 months before the month a person turns 65 and ending 3 months after it. Missing it can mean waiting to enroll and paying a monthly late enrollment penalty for Part B for as long as the person has Part B coverage.

The Medicare Open Enrollment Period runs from October 15 to December 7 each year. During it, people with Medicare can join, drop or switch Medicare Advantage plans and Part D drug plans, and switch between Original Medicare and Medicare Advantage, with changes taking effect January 1. It's separate from the Medicare Advantage Open Enrollment Period, January 1 to March 31.

Medicare Part A is hospital insurance. It helps cover inpatient care in hospitals, skilled nursing facility care, hospice care and home health care. Most people pay no Part A premium because they or a spouse paid Medicare taxes long enough while working, generally at least 10 years. A deductible applies for each benefit period.

Medicare Part B is medical insurance. It helps cover doctors' and other providers' services, outpatient care, durable medical equipment and many preventive services. In 2026 the standard premium is $202.90 a month, or higher depending on income, with a $283 yearly deductible, after which the beneficiary usually pays 20% of the Medicare-approved amount.

Medicare Part D is Medicare's prescription drug coverage. It helps pay for brand-name and generic drugs and is offered by insurance companies and other private companies approved by Medicare, either as a stand-alone drug plan alongside Original Medicare or built into many Medicare Advantage plans. It's optional, but joining late without other creditable drug coverage can mean a late enrollment penalty.

Medicare Supplement Insurance (Medigap) is private insurance sold to people with Original Medicare, Part A and Part B, to help pay their share of out-of-pocket costs such as copayments, coinsurance and deductibles. Under federal law, a person gets a one-time, 6-month Medigap Open Enrollment Period starting the first month they have Part B and are 65 or older, during which insurers can't use medical underwriting to deny coverage.

Original Medicare is the traditional, government-run way to get Medicare, made up of Part A (hospital insurance) and Part B (medical insurance). Beneficiaries can use any doctor or hospital that accepts Medicare, can add a separate Part D drug plan, and can buy supplemental coverage such as Medigap. It has no yearly out-of-pocket limit on its own.

A State Health Insurance Assistance Program (SHIP) is a free, state-based program that offers one-on-one, unbiased counseling to people with Medicare and their families. Trained counselors and volunteers help people compare Medicare options, understand costs and apply for programs such as Extra Help and Medicare Savings Programs. SHIPs don't sell insurance.

Off-premises coverage is the part of a renters or homeowners policy that extends personal property coverage to belongings while they are away from the insured residence, such as in a car, a hotel room, a storage unit or luggage, against the same perils the policy lists for belongings at home. Some policies limit the amount paid for property kept elsewhere.

Renters insurance is a policy for tenants that generally covers three things: the renter's belongings, the renter's liability for injuring others or damaging their property, and additional living expenses if a covered loss makes the rental unlivable. A landlord's policy covers the building, not the tenant's belongings.