Browsing for apartment insurance rates will introduce you to a whole new world of terminology. The number of unfamiliar terms can be daunting at first. It’s difficult to select the right policy when you’re unsure of its verbiage. Insurers have their own lexicon that may seem like arbitrary jargon, but every shopper and policyholder should know at least a few critical terms and vocabulary. Otherwise, you may end up choosing a plan that is a poor fit for your needs simply because you didn’t understand the terminology. Familiarizing yourself with the most important renters insurance terms only takes a few minutes, and you will be glad you did.
Rather than wasting your time trying to look up property insurance terms on search engines, you can consult our convenient and easy-to-understand glossary. We’ve listed a definition of the most commonly used and most important terms in the industry. You can quickly scan through our glossary to look up the word or words you don’t know and then return to what you were doing in no time. We’ve structured our definitions to provide sufficient information to facilitate understanding without going overboard with industry jargon. Consult our glossary now to brush up on the terms every policyholder should know.
Benefit Period - The time period for which payments for benefits of an insurance policy are available.
Binder - A temporary contract that provides proof of coverage until the insured receives a permanent plan from the company. A binder is contingent on the payment of a premium.
Churning - A fraudulent practice by untrustworthy agents to repeatedly persuade their customers to replace existing policies with new ones; agent may gain financial benefit from writing new policies, or because they’ve switched companies.
Claim - A request for reimbursement due to damages on an insured property.
Conditions - The part of a policy that lays out in writing your obligations and those of your insurer.
Declarations Page - The first page of your policy to contain information such as the legal name of your insurance company, the plan number, your coverages, the amounts of your coverages, and your deductibles.
Deductible - The out-of-pocket amount you must pay for each claim or accident before the company begins to pay.
Exclusions - The limits or conditions listed that are not financially covered in a renters insurance policy.
Lapse - This is a plan that is no longer in effect due to unpaid premiums.
Negligence - The failure to exercise a generally acceptable level of care and caution that results in injury or damage.
No-Fault Insurance - A form of insurance where coverage is afforded regardless of who caused the damage.
Policy Owner - The person or persons who own an insurance policy.
Reasonable & Customary Fees - Those things and services that are considered appropriate, by industry standards, in order to repair or replace a dwelling.
Rescission - When the company voids your plan back to the beginning. It is as if there were never any coverage at all. The company returns any money you paid.
Reinstatement - The resumption of coverage under a policy that has lapsed because of nonpayment of the premium after the grace period. (See “Lapsed”)
Rider - A provision attached to a policy outlining restrictions or limitations on what is covered.
Waiver- An amendment to a plan that excludes coverage for certain conditions. Similar to a rider.