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.

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