Insurance glossary

A liability framework that reduces recovery when the injured party shares fault. UM/UIM carriers may reserve rights citing comparative negligence even when police reports assign fault. Related: /claims/cases/7; /claims/guides/auto-uninsured-motorist-claim-guide.

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; /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; /guides/renters-insurance-buying-guide. Editor-reviewed mid-July 2026.

A carrier letter stating it is investigating a claim under a coverage reservation—meaning payment does not admit full policy coverage. Respond in writing and continue documenting. Related: /claims/guides/auto-claim-denial-appeal-guide; /claims/denials. Editor-reviewed August 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; hub /insurance/auto. Editor-reviewed mid-July 2026.

An additional request for payment after the initial estimate—common when hidden damage appears during repairs. Submit photos and revised line items promptly. Related: /claims/guides/auto-collision-supplement-claim-guide; /claims/guides/home-fire-smoke-supplement-claim-guide. Editor-reviewed August 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.

Carrier language preserving coverage defenses while investigating. Responding in writing protects your record. Related: /glossary/reservation-of-rights; /claims/guides/auto-claim-denial-appeal-guide.

A formal medical summary from the treating doctor used in life, accelerated benefit, and disability claims. Wording must match policy trigger language. Related: /claims/cases/16; /claims/guides/life-accelerated-death-benefit-claim-guide.

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; /claims/guides/life-probate-beneficiary-delay-claim-guide. Editor-reviewed mid-July 2026.

Secondary payee if the primary beneficiary cannot collect. Conflicts cause probate delays. Related: /claims/cases/17; /guides/life-beneficiary-claim-deep-guide-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.

Initial payment for property at depreciated value with recoverable depreciation released after repairs. Missing completion docs cause holdbacks to expire. Related: /claims/cases/8; /glossary/recoverable-depreciation.

A policy provision allowing each party to hire an appraiser to resolve amount disputes without litigation. Invoked when carrier and policyholder cannot agree on value. Related: /claims/guides/home-hail-damage-claim-guide; /claims/denials. Editor-reviewed August 2026.

Licensed professional statement on whether damage was sudden or gradual. Critical in water and sewer claims. Related: /claims/cases/2; /claims/guides/home-water-damage-moisture-claim-guide.

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; /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 cap on mold or fungi remediation even when the underlying water event is covered. Related: /claims/cases/14; /claims/guides/renters-mold-damage-claim-guide.

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. Editor-reviewed mid-July 2026.

Contractor document releasing property liens after payment—often required before depreciation release. Related: /claims/cases/8; /claims/guides/home-hail-damage-claim-guide.

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. Editor-reviewed mid-July 2026.

Separate illness waiting period for knee ligament conditions on many pet policies. Related: /claims/cases/22; /claims/guides/pet-surgery-claim-guide.

The window before enrollment when insurers review records for pre-existing conditions. Gaps in records trigger denials. Related: /claims/cases/5; /guides/pet-pre-existing-waiting-period-deep-guide-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. 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.

Rules determining which insurer pays first when a member has Medicare plus supplement or employer coverage. Crossover errors delay SNF coinsurance. Related: /claims/cases/19; /claims/guides/medicare-skilled-nursing-coinsurance-claim-guide.

Request for Part D coverage of a drug not on the plan list. Requires physician justification. Related: /guides/medicare-part-d-formulary-guide.

Third-party clinical review of denied prior authorizations or treatments. Available in many states for health plans. Related: /claims/guides/medicare-prior-auth-denial-appeal-guide.

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.

Federal protections against certain out-of-network surprise bills for emergency and facility-based care. Related: /claims/cases/20; /claims/guides/medicare-out-of-network-claim-guide.

Damage or injury caused by a peril your policy covers, subject to exclusions and limits. Denials often argue an event is not a covered loss—compare adjuster language to policy definitions. Related: /claims/denials; /methodology#claims-content-examples. Editor-reviewed August 2026.

Carrier adjustment of personal property claims using database pricing without in-person inspection. Weak inventories get reduced. Related: /claims/cases/6; /claims/guides/renters-theft-claim-guide.

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. Editor-reviewed mid-July 2026.

Coverage for additional living expenses when a rented unit is uninhabitable. Requires habitability documentation. Related: /claims/cases/24; /claims/guides/renters-fire-smoke-claim-guide.

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.