Insurance glossary

First notice of loss (FNOL) is your initial report to the insurer after an incident. Prompt FNOL preserves evidence, starts mitigation duties, and avoids late-report denials. Get a claim number in writing. Related: /claims/guides/auto-accident-claim-guide-2026; /claims/guides/home-water-damage-claim-guide. Editor-reviewed mid-July 2026.

Liability limits cap what your insurer pays for bodily injury or property damage you cause to others. State minimums are often below the assets many households need to protect. Compare umbrella or higher limits before binding. Related: /guides/auto-um-uim-coverage-deep-guide-2026; hub /insurance/auto. Editor-reviewed mid-July 2026.

Premium is the price you pay for insurance coverage over the policy term. Rates change with risk factors, claims history, credit where allowed, and coverage selections—not just loyalty. Re-shop annually. Related: /guides/auto-insurance-buying-guide-2026; /guides/renters-insurance-buying-guide-2026. Editor-reviewed mid-July 2026.

Subrogation is when your insurer pursues the at-fault party or their insurer to recover payments made to you. You may need to cooperate; settlements can affect uninsured motorist claims. Related: /claims/guides/auto-accident-claim-guide-2026; hub /insurance/auto. Editor-reviewed mid-July 2026.

Uninsured/underinsured motorist (UM/UIM) coverage helps pay your injuries or damages when the at-fault driver has little or no insurance. Rules vary by state for stacking and offset. Related: /guides/auto-stacked-unstacked-um-uim-buying-guide; /claims/guides/auto-uninsured-motorist-claim-guide. Editor-reviewed mid-July 2026.

The contestability period (often two years on life policies) lets insurers review application accuracy after a death claim. Material misstatements can delay or reduce payment. Beneficiary disputes are separate from contestability. Related: /claims/guides/life-contestability-period-claim-guide-2026; /claims/guides/life-probate-beneficiary-delay-claim-guide. Editor-reviewed mid-July 2026.

Actual cash value (ACV) is replacement cost minus depreciation for age and wear. On home and auto claims, ACV settlements can be materially lower than replacement-cost payouts for older roofs, furniture, or vehicles. Compare policy wording before renewal. Related: /guides/home-replacement-cost-vs-acv-deep-guide-2026; hub /insurance/home. Editor-reviewed mid-July 2026.

A deductible is the amount you pay out of pocket before insurance responds to a covered loss. Higher deductibles usually lower premium but increase your cost at claim time. Auto and home policies may use flat dollar or percentage deductibles for wind or hail. Related: /guides/auto-high-vs-low-deductible-guide-2026; /guides/home-wind-hail-deductible-buying-guide. Editor-reviewed mid-July 2026.

Extended replacement cost adds a percentage buffer above dwelling limits when rebuild costs spike after disasters. It helps avoid underinsurance but still requires accurate initial limits. Related: /guides/home-replacement-cost-vs-acv-deep-guide-2026; /guides/home-ordinance-law-code-upgrade-buying-guide. Editor-reviewed mid-July 2026.

A hail or wind deductible may be a percentage of dwelling value rather than a flat dollar amount, especially in hail-prone states. It can produce surprise out-of-pocket costs after storms. Related: /guides/home-wind-hail-deductible-buying-guide; /claims/guides/home-hail-damage-claim-guide-2026. Editor-reviewed mid-July 2026.

Recoverable depreciation lets you claim the withheld depreciation after completing repairs and submitting proof. Non-recoverable schedules pay ACV only. Document invoices carefully. Related: /guides/home-replacement-cost-vs-acv-deep-guide-2026; /claims/guides/home-claim-guide-2026. Editor-reviewed mid-July 2026.

Replacement cost coverage pays to repair or replace damaged property with similar materials at current prices, without deducting depreciation in many home policies. Verify whether recoverable depreciation applies and what documentation is required at claim time. Related: /guides/home-replacement-cost-vs-acv-deep-guide-2026; /claims/guides/home-claim-guide-2026. Editor-reviewed mid-July 2026.

A bilateral exclusion in pet insurance denies cruciate coverage on the second knee if the first was treated before enrollment or during waiting periods. Read bilateral language carefully on accident vs illness plans. Related: /guides/pet-pre-existing-waiting-period-deep-guide-2026; /claims/guides/pet-surgery-claim-guide-2026. Editor-reviewed mid-July 2026.

A pre-existing condition is an illness or injury with signs before enrollment or during a waiting period. Pet and some health policies may exclude or limit related claims. Gather vet or medical records before filing. Related: /guides/pet-pre-existing-waiting-period-deep-guide-2026; /claims/guides/pet-chronic-condition-claim-guide-2026. Editor-reviewed mid-July 2026.

Waiting periods delay coverage for accidents, illnesses, cruciate tears, or dental benefits after a pet policy starts. ER visits during waiting periods are often denied. Confirm effective dates on declarations. Related: /guides/pet-pre-existing-waiting-period-deep-guide-2026; /claims/guides/pet-emergency-after-hours-vet-claim-guide. Editor-reviewed mid-July 2026.

Medicare Supplement Plan G covers most Part A and B cost-sharing after you meet the annual Part B deductible. It does not include the Part B deductible or drug coverage. Compare Plan N and IRMAA impacts before enrolling. Related: /guides/medicare-medigap-plan-letters-deep-guide-2026; /guides/medicare-irmaa-income-surcharge-buying-guide. Editor-reviewed mid-July 2026.

Loss of use (additional living expense) coverage reimburses extra housing and meal costs when your home or rental is uninhabitable after a covered loss. Keep receipts and confirm landlord repairs timelines. Related: /claims/guides/renters-fire-smoke-claim-guide; /claims/guides/renters-claim-guide-2026. Editor-reviewed mid-July 2026.

Scheduled personal property endorsements cover jewelry, bikes, or instruments above standard sub-limits with agreed values or appraisals. Unscheduled theft may cap at $1,500 for electronics. Related: /guides/home-scheduled-personal-property-buying-guide; hub /insurance/home. Editor-reviewed mid-July 2026.

Sub-limits cap payouts for specific categories such as jewelry, cash, water backup, or mold regardless of total personal property limits. Review declarations for each sub-limit before a loss. Related: /guides/renters-theft-claim-evidence-deep-guide-2026; /claims/guides/renters-theft-claim-guide. Editor-reviewed mid-July 2026.