Home Insurance Terms (Florida Glossary)

🛡️ Actual Cash Value (ACV)

A method of valuing covered damaged property that generally reflects replacement cost less applicable depreciation. The amount payable also depends on policy terms, limits, and deductibles.

🏠 Additional Living Expenses (ALE)

Coverage for eligible increased living expenses, such as temporary lodging and additional meal costs, when a covered loss makes your home unfit to live in. Limits, time restrictions, and conditions apply.

🌀 All Perils / Open Perils

Open-perils coverage generally covers direct physical loss unless a cause of loss is excluded or otherwise limited by the policy. It does not mean every type of damage is covered; the coverage form and the property involved matter.

🔧 Appraisal

A policy-based process that may help resolve disputes about the amount of a covered loss. It generally does not decide whether a cause of loss is covered. Availability and procedures depend on the policy and applicable law.

📄 Binder

A temporary insurance agreement or evidence of coverage issued by an authorized insurer or representative, subject to its terms. A quote or application alone is not a binder.

🔥 Coverage A (Dwelling)

Coverage for the insured dwelling and generally attached structures, subject to the policy’s terms. The Coverage A limit is not a guaranteed claim payment or necessarily the home’s market value.

📦 Coverage B (Other Structures)

Coverage for qualifying structures separated from the dwelling, such as detached garages or sheds. Certain fences and other structures may be subject to special limits or exclusions.

🛋️ Coverage C (Personal Property)

Coverage for eligible belongings such as furniture, clothing, and electronics. Covered causes of loss, valuation, location restrictions, and special limits for certain items vary by policy.

🚧 Coverage D (Loss of Use)

Coverage that may pay qualifying additional living expenses, and in some policies fair rental value, when a covered loss triggers the policy’s loss-of-use provisions. Limits and conditions apply.

🧱 Coverage E (Personal Liability)

Coverage that may help with defense costs and covered damages when an insured is legally liable for bodily injury or property damage to others. It is not limited to incidents occurring on your property, and exclusions apply.

🩹 Coverage F (Medical Payments to Others)

Coverage for certain minor medical expenses of eligible people injured in circumstances described by the policy, generally without requiring a determination of legal liability. It does not ordinarily cover the insured or regular household residents.

💧 Deductible

The portion of a covered loss applied before the insurer calculates its payment, subject to policy provisions. Florida homeowners policies may have separate deductibles for hurricanes or other specified causes of loss.

🌬️ Hurricane Deductible

A deductible that applies to covered hurricane losses when the policy’s hurricane-deductible provisions and applicable Florida rules are triggered. It is commonly expressed as a percentage of the insured dwelling limit, and special calendar-year rules can apply.

📉 Depreciation

A reduction in an item’s value based on factors such as age, condition, and useful life. How depreciation is calculated and whether it may be recovered depend on the coverage and claim settlement terms.

🧾 Endorsement

A document that adds, removes, or changes policy terms or coverage. An endorsement can expand coverage, restrict it, or change conditions or deductibles.

🏠 Exclusion

A policy provision identifying losses, property, or circumstances not covered. For example, standard homeowners policies generally exclude flood damage from rising surface water and storm surge; separate flood coverage may be available.

📊 Insurance Score

A term sometimes used for a score derived from insurance-related or credit-related data. Its use and permitted factors depend on the insurance product and state law. Florida restricts the use of credit information in personal insurance; do not assume a credit-based score is used to price every Florida homeowners policy.

🛠️ Loss Assessment

Coverage that may help pay an insured owner’s share of certain assessments charged by a condominium or homeowners association because of a covered loss or covered liability event. Eligibility, sublimits, deductibles, and exclusions vary significantly.

📍 Loss History Report (CLUE)

A consumer loss-history report, such as a CLUE report, containing certain insurance claims information associated with an individual or property. The information an insurer may consider, and how it may use that information, are subject to applicable rules and underwriting guidelines.

🧾 Policy Declarations Page (Dec Page)

A summary of key policy information, often including the named insured, insured location, policy period, coverage limits, deductibles, and premium. The declarations page should be read with the complete policy and endorsements.

🏗️ Replacement Cost Value (RCV)

A valuation method generally based on the cost to repair or replace covered damaged property with comparable materials or items, without a deduction for depreciation. Actual claim payments may depend on repair or replacement requirements, policy limits, deductibles, exclusions, and other settlement conditions.

🌧️ Water Backup Coverage

Optional coverage, when offered, for certain water or sewage backup losses through sewers or drains, or overflow or discharge from a sump system. It is not a substitute for flood insurance, and specific exclusions, limits, and deductibles apply.

🌀 Wind Mitigation

Documented construction features that can help a home resist wind damage, such as roof-to-wall connections, roof-deck attachment, roof geometry, and qualifying opening protection. Eligible features may earn wind-mitigation credits under an insurer’s filed rating rules; savings are not automatic or guaranteed.