Florida Insurance Glossary – Home, Auto & Life
This glossary explains common insurance terms used in Florida property, auto, and life insurance. Each definition is written in plain language to help you better understand your coverage.
A
Actual Cash Value (ACV): The value of property at the time of loss, minus depreciation.
Additional Insured: A person or entity added to your policy for liability protection.
All Perils Deductible: The standard deductible applied to most non-hurricane claims.
Assignment of Benefits (AOB): A contract allowing a contractor to take over your claim rights. Often discouraged in Florida.
B
Bodily Injury (BI): Auto coverage that pays for injuries you cause to others.
Broker: A licensed agent who shops multiple carriers for you.
C
Catastrophic Ground Collapse: Severe sinkhole activity that makes a home uninhabitable.
Citizens Property Insurance: Florida’s state-backed insurer of last resort.
Claim: A request submitted to your insurer for payment after a covered loss.
Collision Coverage: Pays for damage to your vehicle from a crash.
Comprehensive Coverage: Pays for non-collision losses like theft, hail, or vandalism.
Coverage A–F: The six major sections of a homeowners policy.
D
Deductible: The amount you pay out of pocket before insurance pays the rest.
Depreciation: Reduction in value due to age or wear.
E
Effective Date: The date your insurance coverage begins.
Exclusion: A loss or situation not covered by your policy.
F
Flood Insurance: A separate policy covering rising water.
FR‑44: A Florida-required auto filing for certain DUI offenses.
G
Garaging Address: Where your vehicle is primarily kept.
H
Hurricane Deductible: A separate deductible applied only to hurricane wind losses.
I
Inspection (4‑Point): A Florida-specific inspection reviewing roof, plumbing, electrical, and HVAC.
L
Liability Coverage: Protection if you cause injury or property damage.
Loss Assessment: Condo coverage for special assessments.
Life Insurance (Term): Coverage for a set number of years.
Life Insurance (Whole): Permanent coverage with cash value.
M
Medical Payments (Auto): Pays for minor injuries.
Mortgagee: Your mortgage lender listed on the policy.
P
PIP: Required Florida auto coverage for medical bills.
Premium: The amount you pay for your policy.
R
Replacement Cost (RCV): Pays to repair or replace without depreciation.
Rider: An optional add‑on modifying coverage.
Roof Age: A major underwriting factor in Florida.
S
Sinkhole Coverage: Optional coverage for non‑catastrophic sinkhole activity.
SR‑22: A certificate proving minimum auto insurance.
T
Term Life Insurance: Coverage for a set number of years.
U
Umbrella Policy: Extra liability coverage.
Uninsured Motorist (UM): Protects you if hit by an uninsured driver.
W
Wind Mitigation: A Florida inspection that can reduce premiums.
Related Florida Insurance Pages
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