Actual cash value (ACV)
The replacement cost of an item minus depreciation for age and wear. An older roof or older furniture can be worth much less on an ACV basis than it costs to replace, leaving a gap for the policyholder to cover.
See the guide →Additional insured
A person or entity added to a policy, usually by endorsement, so it receives certain protection. Common examples are a family trust or LLC, or a marina that requires it in its contract. Their coverage is usually narrower than the named insured's.
Adjuster
The person who investigates a claim, inspects the damage and estimates the payment on behalf of the insurer. They may be an insurer employee or an independent adjuster hired by the insurer. Their role is to evaluate the claim under the policy terms.
Agreed value
A value the insurer and policyholder set in advance. In a covered total loss, the policy pays that amount without deducting depreciation. It is common for art, scheduled jewelry, classic cars, boats and aircraft.
See the guide →Appraisal clause
A policy procedure for resolving disagreements about the amount of a loss. Each side picks an appraiser and the two select an umpire; a decision by any two is typically binding on the amount, but usually not on whether coverage exists.
Appraisal (valuation of an item)
A written valuation of an item by a qualified appraiser, with a description, photos and a value for insurance purposes. Insurers use it to set the scheduled value. Because prices change, it is worth updating periodically. It differs from the appraisal clause.
See the guide →Beneficiary
The person or entity that receives the payout of a life policy or certain accounts when the owner dies. It is worth reviewing after marriages, divorces, births or changes in estate planning, and coordinating with your attorney.
Blanket coverage
A single limit covering a category of items without listing each piece, often with a per-item maximum. It is useful for collections with many moderately valued pieces; high-value pieces are usually scheduled individually.
See the guide →Bodily injury liability (BI)
Pays for injuries you cause to other people in a crash, plus your legal defense. Florida does not require it for private passenger cars, but without it the driver's and owner's assets are exposed, and many umbrella policies require it as an underlying limit.
See the guide →Breakage coverage
Covers accidental damage to fragile pieces, such as glass, ceramics, porcelain or sculpture. Many policies exclude or limit it unless it is specifically added. It is especially relevant for art that is moved, loaned or exhibited.
See the guide →Builder's risk insurance
A policy that protects a project in progress and its materials. Florida DFS explains that it is a named peril policy, that wind should be covered subject to the contract and that rain is not a named peril.
See the guide →Business email compromise (BEC)
Fraud in which a criminal poses as someone trusted, such as an attorney, a title company or a relative, to redirect a payment. It is common at real estate closings, through fake wiring instructions.
See the guide →Catastrophic ground cover collapse
Required coverage in Florida for an abrupt ground collapse with a visible depression, structural damage and a government order to vacate. Mere settling or cracking does not qualify. Broader sinkhole coverage must be offered but is optional, for an additional premium.
See the guide →Claim
A formal request for payment made to the insurer after a loss. In Florida, the law requires notice of a property claim within one year of the date of loss (18 months for a supplemental claim), although policies typically ask for prompt notice.
Claims-made policy
A policy that responds to claims made while it is in force, not to events that happened during that period. It is common in D&O, so review prior acts coverage and extended reporting periods.
See the guide →Collision and comprehensive
Collision pays for damage to your vehicle from a crash. Comprehensive covers non-crash damage, such as theft, fire, falling trees or flood. Hurricane damage to a car is typically claimed here, not under the homeowners policy.
See the guide →Confidentiality condition
A clause common in K&R policies that requires keeping the existence of the coverage, its terms and its limits confidential. Disclosing it can affect coverage, depending on each contract.
See the guide →Coverage A (dwelling)
The part of a homeowners policy covering the house structure and what is attached to it. Its limit should reflect rebuilding cost, not market price, and it is the base used to calculate a percentage hurricane deductible.
See the guide →Coverage limit
The maximum amount the insurer will pay for a covered loss. It can apply per occurrence, per person or as an annual total (aggregate). If a loss exceeds the limit, the difference is normally the policyholder's responsibility.
Credit freeze
A restriction you request from the credit bureaus so no one can open new credit in your name. According to the FTC, it is free, does not affect your score and can be lifted temporarily when you need to apply for credit.
See the guide →Crisis response consultant
A specialist who advises the family during a kidnapping or extortion: communication, coordination with the authorities and protection of other family members. In a K&R policy, access to this team can be the most valuable component.
See the guide →Cyber extortion
A threat to damage, lock or publish a person's data or accounts unless they pay. It includes ransomware and threats to release private information or images. Many policies require notifying the insurer before paying.
See the guide →Dangerous instrumentality doctrine
A Florida legal doctrine under which a vehicle owner can be held liable for the negligence of anyone driving it with permission. That is why who borrows the cars, and whose name they are titled in, matters a great deal.
See the guide →Declarations page
The summary at the front of a policy showing who is insured, what property is covered, the policy period, limits, deductibles and endorsements. It is the first document worth reviewing every year and keeping somewhere easy to find.
Deductible
The portion of a covered loss you pay before the insurer pays the rest. It can be a fixed dollar amount or a percentage of the insured limit. A higher deductible typically lowers the premium but increases what you absorb on each claim.
Director indemnification
An organization's commitment, usually in its bylaws, to cover its directors' expenses and losses from claims arising from their service. It depends on the organization's ability to pay, which is why D&O insurance complements it.
See the guide →Disqualified person
A tax term for people connected to a private foundation, such as substantial contributors, managers and certain family members, whose transactions with the foundation are restricted. Your tax advisor can confirm who qualifies in your case.
See the guide →D&O (directors and officers liability)
Protects board members and officers against claims over management decisions. It is relevant for people who serve on family foundations, nonprofits or family office entities. Many personal policies exclude or limit it.
See the guide →D&O Sides A, B and C
Parts of a directors and officers policy. According to III, Side A protects individuals when the organization cannot indemnify them, Side B reimburses the organization when it does, and Side C covers the entity in certain securities claims.
See the guide →Duty to mitigate
The obligation, found in many policies, to take reasonable steps after a loss to prevent further damage, such as tarping a roof or extracting water. Keep receipts and photos: those costs are often part of the claim if the loss is covered.
See the guide →Elevation certificate
A document prepared by a licensed surveyor, engineer or architect recording a building's elevation and features relative to flood risk. It can be used in pricing a flood policy and for complying with local floodplain rules.
See the guide →Endorsement
A document that changes the base policy by adding, broadening, limiting or removing coverage. Endorsements are part of the contract and are listed on the declarations page. Reading them matters because they can significantly change what the base policy says.
EPLI (employment practices liability)
Covers employee claims of discrimination, harassment, wrongful termination or retaliation. Families with household staff, such as nannies, drivers or house managers, can face these claims; some personal policies allow adding this coverage.
See the guide →Excess flood policy
A private policy that pays above the limits of a primary flood policy, often an NFIP policy. It can help close the gap on high-value homes. Its terms, waiting periods and coverages vary by insurer.
See the guide →Exclusion
A clause that removes coverage for certain causes, property or situations. For example, standard homeowners policies exclude flood, including storm surge. Some exclusions can be addressed with an endorsement or a separate policy.
Express kidnapping
A short abduction to force a person to withdraw money from ATMs or accounts. Some K&R policies include it; confirm that it is expressly named in yours.
See the guide →Extended or guaranteed replacement cost
Extended replacement cost adds a cushion above the dwelling limit that varies by policy (III). Guaranteed replacement cost pays to rebuild even above the limit. Both help protect against unexpected cost spikes after a catastrophe.
See the guide →Flood zone
The risk designation assigned on FEMA flood maps. High-risk zones (beginning with A or V) make up the Special Flood Hazard Area. Even so, almost one-third of NFIP claims from 2014 to 2024 came from outside those areas.
See the guide →Four-point inspection
An inspection reviewing four home systems: roof, electrical, plumbing, and heating and air conditioning. In Florida, many insurers typically request it for older homes before issuing or renewing a policy.
See the guide →Franchise (vs. deductible)
In many Spanish-speaking countries, franquicia simply means deductible. Technically, a franchise is a threshold: once a loss exceeds it, the insurer pays the entire loss. U.S. personal policies generally use deductibles, not franchises, so the Spanish word can cause confusion.
Home-based business activity
Commercial use of a home. The NAIC warns that a property rented out frequently may be treated as a home-based business, and that homeowners policies usually exclude or limit that coverage.
See the guide →Host liability
The liability of someone who hosts guests. In Florida, serving alcohol to an adult of lawful drinking age generally creates no liability for what they do afterward, except when willfully and unlawfully serving someone under 21 or knowingly serving someone habitually addicted to alcohol.
See the guide →Hull (aviation)
Coverage for physical damage to the aircraft. It is often offered in different forms, for example only on the ground not in motion, or also while taxiing and in flight. It is often written on an agreed value basis, which is worth updating to the market.
See the guide →Hull (marine)
Coverage for physical damage to the boat, its engines and equipment. It can pay on an agreed value or actual cash value basis. Named storm damage often carries a special deductible and conditions tied to the hurricane plan.
See the guide →Hurricane deductible
A separate deductible for hurricane damage, usually a percentage of the dwelling (Coverage A) limit. In Florida, insurers must offer $500, 2%, 5% and 10% options, with variations for higher-value homes, and it applies once per calendar year.
See the guide →Hurricane plan (boat)
A written plan many marine policies require: where and how the boat is secured before a storm, who moves it and when. Some policies share the cost of hauling it out. Not following the plan can affect a claim.
See the guide →Increased Cost of Compliance (ICC)
An NFIP coverage that can pay up to $30,000 to bring a home into compliance with new or updated floodplain standards, such as elevating it. It generally applies in high-risk areas when the property is declared substantially or repeatedly damaged by flood.
See the guide →Kidnap and ransom insurance (K&R)
Coverage for the costs of responding to a kidnapping, extortion, illegal detention or other coercive events. According to III, policies for individuals usually pay the cost of handling the incident but do not reimburse the ransom, unlike corporate policies.
See the guide →Landlord policy
A policy for a home that is rented out. According to the NAIC, it can cover the home, other structures, contents, lost rental income from damage, legal fees and liability claims.
See the guide →Liability
The legal obligation to pay for injuries or damage you cause to others through negligence. Liability coverage typically pays legal defense and damages up to the policy limit. It is part of homeowners, auto and boat policies.
See the guide →Lien release
A document in which a contractor, subcontractor or supplier confirms payment and waives a lien claim on the property for that amount. Asking for one before each payment helps avoid paying twice.
See the guide →Loss assessment coverage
Coverage that pays the owner's share of an assessment the association charges for a covered loss. In Florida, the law requires at least $2,000 on unit owner policies, with a deductible of no more than $250.
See the guide →Loss of rents
Coverage that replaces rental income lost while a property damaged by a covered peril is being repaired. The NAIC lists lost rental income among the coverages a landlord policy can include; a homeowners policy may exclude or limit a home used as a rental business.
See the guide →Loss of use (additional living expenses)
Pays reasonable extra costs, such as a hotel or temporary rental, when a covered loss makes the home unlivable. It usually has a dollar or time limit. After a hurricane, repairs can take months, so this limit is worth reviewing.
See the guide →Master policy
A condominium association's property policy. In Florida it must cover the condominium property as originally installed, and it excludes personal property and the finishes inside each unit.
See the guide →Milestone inspection
A structural inspection Florida law requires for condominium or cooperative buildings three habitable stories or higher, starting at 30 years of age and every 10 years after that. The local authority may require it at 25 years in some cases.
See the guide →Mysterious disappearance
The loss of an item with no known explanation, such as a ring that simply cannot be found. Standard homeowners policies typically cover theft but often not a disappearance without evidence of theft. Many scheduled valuables policies do include it.
See the guide →Named insured
The person or entity listed by name on the declarations page. They generally hold the most rights and duties under the policy. If a property is owned by an LLC or a trust, it is worth confirming that the correct owner is named.
Named perils
A form of coverage that responds only to the events the policy lists. Anything not on the list is not covered, unlike open perils coverage, which covers everything except what is excluded.
See the guide →Navigation limits
The geographic area where the policy covers the boat, for example Florida coastal waters and the Bahamas. Operating outside those limits without an endorsement can leave the boat uncovered. Some policies also set dates for certain areas during hurricane season.
See the guide →Negligent entrustment
A claim against someone who lends a car, boat or other dangerous item to a person they knew or should have known was unfit to use it, for example due to inexperience or drinking. It can apply even when the owner is not present.
See the guide →NFIP (National Flood Insurance Program)
The federal program managed by FEMA that provides flood insurance. For residential homes, it covers up to $250,000 for the building and up to $100,000 for contents. For higher-value homes, those limits can fall short.
See the guide →No-fault system
Florida's system in which your own PIP pays initial injury costs regardless of who caused the crash. Suing the at-fault driver for pain and suffering is allowed only when a legal threshold is met: permanent injury, significant and permanent scarring or disfigurement, significant and permanent loss of an important bodily function, or death.
See the guide →Notice of commencement
A document Florida's lien law requires to be recorded and posted on the site before the first inspection. It expires 1 year after recording unless the notice states a different date, and paying after it expires can make the owner pay twice.
See the guide →Ordinance or law coverage
Pays the extra cost of rebuilding to current building codes. In Florida, insurers must offer it at 25% or 50% of the dwelling limit, and the policy includes the 25% option unless the policyholder rejects it in writing.
See the guide →Owner-builder
An owner who pulls the permit and acts as their own contractor. The disclosure Florida law requires warns that the owner may be liable for injuries to unlicensed workers and that the homeowners policy may not cover them.
See the guide →Pair and set clause
Defines how a loss is paid when one piece of a pair or set is lost or damaged, such as one earring or one chair from a set. Many policies pay the loss in value of the set; some allow paying for the full set and taking the rest.
See the guide →Per-seat sublimit
A per-passenger limit inside aviation liability coverage. With a per-seat sublimit, the policy pays at most that amount for each injured passenger, even when the overall limit is higher. Policies without a per-passenger sublimit are known as smooth limit policies.
See the guide →Personal cyber insurance
Coverage for a household against digital risks such as online extortion, fraud, identity theft or data restoration. It can be sold as a separate policy or as an endorsement, and its coverages and exclusions vary widely between policies.
See the guide →Personal property (Coverage C)
Covers the contents of the home: furniture, clothing, electronics and other belongings. It often includes sublimits for jewelry, art, silver or cash, and may pay on an actual cash value or replacement cost basis depending on the policy.
See the guide →Pilot warranty (pilot clause)
The policy condition defining who may fly the aircraft: required certificates, ratings, flight hours and training. If someone who does not meet the clause is flying, coverage may not apply, even for a hired pilot.
See the guide →PIP (Personal Injury Protection)
Required Florida coverage with a $10,000 minimum. Regardless of who caused the crash, it pays 80% of reasonable medical expenses and 60% of lost income, plus a $5,000 death benefit. Without an emergency medical condition, medical reimbursement is limited to $2,500.
See the guide →Premium
The price paid for a policy for its policy period. It depends on factors such as the insured value, location, construction, claims history, chosen deductibles and available credits, such as wind mitigation discounts in Florida.
Property damage liability (PDL)
Pays for damage your vehicle causes to other people's property, such as another car, a fence or a pole. Florida requires a $10,000 minimum, an amount that can fall short of the cost to repair modern vehicles.
See the guide →Protection and indemnity (P&I)
The liability coverage in a marine policy. It responds to injuries to other people, including guests aboard, and damage to other boats, docks or property. Some policies cover pollution or crew separately.
See the guide →Public adjuster
A professional licensed by the Florida Department of Financial Services (DFS) who represents the policyholder, not the insurer, and is paid a percentage of the claim payment. Florida law caps fees: for example, 10% on claims from a declared-emergency event made during the year after the declaration, and 20% in general.
Reinsurance
Insurance that insurers themselves buy to transfer part of their risk, especially catastrophe risk such as hurricanes. Its cost and availability influence how much business Florida insurers can write and the premiums they charge.
Replacement cost
A settlement method that pays to repair or replace property with materials of like kind and quality, without deducting depreciation. Many policies first pay actual cash value and pay the rest once you complete the repair or replacement.
See the guide →Residence employee
The term many homeowners policies use for staff who work on the property, such as nannies or gardeners. Some policies extend certain coverages to them, with conditions and limits. It is worth reading how the policy defines the term and what it includes.
See the guide →Scheduled valuables policy
A policy or endorsement in which each piece (jewelry, artwork, watch, instrument) is listed with a description and value, usually supported by an appraisal. It often offers broader terms than the homeowners policy, such as coverage for loss or disappearance.
See the guide →Self-dealing
According to the IRS, certain transactions between a private foundation and disqualified persons, such as sales, leases, loans or payments. It can trigger excise taxes on the disqualified person and on a manager who knowingly participates.
See the guide →Social engineering
Deception that manipulates a person into handing over money, passwords or information, instead of attacking a system. It often relies on urgency, authority or trust, by email, text message or phone call.
See the guide →Special assessment
An extraordinary charge the association levies on owners, on top of regular dues, to pay for a repair, an insurance deductible or a reserve shortfall.
See the guide →State Department travel advisory
A rating of each destination on four levels: 1, exercise normal precautions; 2, exercise increased caution; 3, reconsider travel; 4, do not travel. The letter K flags a risk of kidnapping or hostage taking.
See the guide →Storm surge
The abnormal rise of seawater pushed ashore by a storm. For insurance purposes it counts as flood: standard homeowners policies exclude it, and it is covered under a flood policy.
See the guide →Structural integrity reserve study (SIRS)
A study condominium associations must complete at least every 10 years for buildings three habitable stories or higher. It covers items such as roof, structure, plumbing, electrical systems and waterproofing, and sets reserves that, with limited exceptions, can no longer be waived.
See the guide →Sublimit
A smaller limit inside a policy for a certain type of property or cause of loss. For example, a standard homeowners policy often has a low limit for jewelry theft, according to the Insurance Information Institute.
See the guide →Subrogation
The insurer's right, after paying you, to recover that money from the third party who caused the loss. Some contracts include a waiver of subrogation, and signing one without telling your insurer can affect coverage.
Term life insurance
Life insurance that pays beneficiaries if the insured dies during a fixed period, such as 10, 20 or 30 years. According to LIMRA (2024), 72% of Hispanics overestimate its cost. Unlike permanent insurance, it builds no cash value.
Tourist development tax
A local tax on rentals of accommodations for six months or less, levied by many Florida counties in addition to state sales tax. The rate and how it is paid depend on the county.
See the guide →Umbrella policy
An additional liability policy that pays above homeowners, auto and boat limits, and can cover risks those policies leave out, such as libel or slander. It requires minimum underlying limits, and most exclude aviation liability.
See the guide →Underinsurance
When the insured limit is lower than the real cost to rebuild or replace. U.S. residential reconstruction costs rose 25.9% from March 2020 to May 2023 (Verisk).
See the guide →Underlying limits
The minimum liability limits the umbrella insurer requires on primary home, auto or boat policies. If a primary policy carries a lower limit, the difference is normally the policyholder's responsibility before the umbrella responds.
See the guide →Uninsured/underinsured motorist (UM/UIM)
Pays for your injuries when the at-fault driver has no insurance or not enough. About 1 in 5 Florida drivers was uninsured in 2023. Florida law allows rejecting it in writing or choosing stacked or non-stacked versions.
See the guide →Unit owner policy (HO-6)
The policy of a condominium unit owner. It covers what the law leaves to the owner, such as floors, cabinets, appliances and personal property, plus liability and, depending on the policy, additional living expenses.
See the guide →Vacancy clause
A condition in many homeowners policies that limits or excludes coverage if the property is unoccupied for typically 30 to 60 consecutive days, according to III. It matters during long renovations and in seasonal homes.
See the guide →Vacation rental
In Florida, a condominium unit or a home with up to four units that operates as transient public lodging. DBPR requires a license if it is rented in full more than three times a year for periods of less than 30 consecutive days, or advertised as regularly rented.
See the guide →Virtual kidnapping
Extortion in which no one was taken: someone claims to hold a loved one and demands immediate payment, sometimes with altered photos. The FBI recommends trying to reach that person before paying and having a family code word.
See the guide →Waiting period
The time between buying a policy and the start of coverage. NFIP policies generally have a 30-day wait, with exceptions such as a purchase tied to a mortgage loan. Private flood waits vary, often about two weeks.
See the guide →Wind mitigation inspection
An inspection documenting wind-resistant features, such as roof deck attachment, roof-to-wall connections and opening protection. Florida law requires rates to reflect these features through discounts or credits. The official form (OIR-B1-1802) is valid up to five years if no material changes are made.
See the guide →Workers' compensation
Pays medical costs and lost wages for work injuries. In Florida, domestic servants in private homes are excluded from the definition of employment, but the employer may voluntarily elect coverage. Without it, an injury can become a claim against the family.
See the guide →Wreck removal
Covers the cost of removing a sunken or wrecked boat when authorities require it. It can be very expensive after a storm. Depending on the policy, it is paid within the hull limit, within liability or as a separate limit.
See the guide →No term matches. Try another word or search in Spanish.