Insurance 101: The Ultimate Glossary of Must-Know Terms
Insurance can feel like a maze of confusing jargon. But understanding the key terms is crucial for making informed decisions about protecting yourself, your loved ones, and your assets. Let's decode the insurance lingo together!
Arson
The deliberate setting of a fire.
Assigned Risk Plans
Facilities through which drivers can obtain auto insurance if they are unable to buy it in the regular or voluntary market.
Assigned Risk Plans
Facilities through which drivers can obtain auto insurance if they are unable to buy it in the regular or voluntary market.
Association
The governing body of a condominium building.
Auto Insurance
Protects you financially from accidents, theft, and other vehicle-related damage.
Average Annual Loss (AAL)
The expected long-term loss from flood damage, calculated by multiplying the probability of a flood event by the average amount of damage caused by such an event.
BCEG Class
Building Code Effectiveness Grading, a Florida statute designed to evaluate a community's building code and the enforcement of that code.
Base Flood
A flood with a 1% chance of occurring in any given year.
Base Flood Elevation (BFE)
The height above a specific datum, typically sea level, at which floodwaters are expected to reach during a 100-year flood.
Base Flood Elevation Certificate
A document verifying a property's elevation in relation to the BFE.
Basement
An area of a building that is partially or completely below ground level.
Beneficiary
The person or entity you designate to receive the benefits from your insurance policy (like death benefits from life insurance).
Benefit Period
The length of time you can receive disability benefits.
Benefit Period
The length of time the policy will pay benefits.
Biennial Report
A document submitted every two years by NFIP participating communities detailing their floodplain management progress and needs.
Binder
A temporary agreement providing coverage until a formal insurance policy is issued.
Binder or Certificate of Insurance
A temporary proof of insurance coverage, not recognized by NFIP, except for renewal policies.
Blanket Insurance
A single insurance policy covering multiple properties, not allowed under NFIP.
Blended Rate
A combination of premium rates used in some areas to reflect varying flood risks within a single flood zone.
Bodily Injury Liability (BIL)
Covers medical expenses and other damages if you injure someone else in an accident.
Breakaway Wall
A non-structural wall designed to collapse without damaging the building's structure.
Building
A structure with a roof and walls, built for occupancy or storage.
Building Property Coverage
Covers damage to the structure of your building, including its foundation.
Building Property Coverage
Covers the physical structure of your home, including its foundation, electrical and plumbing systems, central air conditioning, furnaces, and permanent carpeting.
Building in the Course of Construction
A partially completed, enclosed building attached to a fixed location.
Don't Be Afraid to Ask!
If you come across an insurance term you don't understand, don't hesitate to ask your insurance agent or company. They are there to help you navigate the complexities of insurance. Remember, knowledge is power when it comes to protecting your financial well-being.
Pro Tip: Always read your insurance policy carefully and ask questions to ensure you have the right coverage for your specific needs and circumstances.
