Insurance industry terminology can be a little daunting. That’s why we've defined some commonly used terms to help you navigate your way through the technical jargon.

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Basic premium
The premium charged for the standard coverages in your homeowners policy (Coverage A-D).
Blanket limit
One limit of insurance that applies to multiple insured items.
Bodily injury
Covers physical injury to other people when you are at fault. This coverage does not pay for your own injuries.


A request to the insurance company to receive payment for damage or injury covered under the policy.
Claim Adjuster
An insurance company employee or contractor who reviews the damage and injuries for a claim and authorizes payments.
Pays repair costs for your vehicle when it is damaged by another vehicle or object.
Comprehensive (non-collision)
Pays repair costs for your vehicle when it is damaged by something other than another vehicle, such as theft, vandalism, hail, or animal hits.
The amount and type of insurance carried.


Lists the basic information about your policy, including coverages, deductibles, and coverage limits.
The amount you agree to pay for repairs before Acuity starts covering additional costs.
Dwelling amount
The current home coverage amount should reflect what it would cost to rebuild your home, which is not the fair market value in most cases.


Special provisions added to a policy that add, remove or otherwise alter coverage. Endorsements can be used to tailor coverage to your specific needs.


First party benefits
Provides a variety of medical benefits for you and your passengers after an accident.


Guaranteed replacement
Allows you to rebuild your home after a loss, even if the cost is more than your home insurance amount.


Independent Agent
Knowledgeable insurance professional who represents multiple insurance companies to recommend and service each customer’s insurance needs.


Protects your assets when you are at fault in an accident that results in physical injury to other people and/or damage to their property.
The amount of insurance carried.
Limits each occurrence/accident
The maximum amount that will be paid for all claims resulting from a single accident.
Limits each person
The maximum amount that will be paid for injuries to a single person per occurrence.
Damage or injury that may be covered under your policy.
Loss of Business Income
If you experience a vehicle or equipment breakdown, Acuity's Loss of Business Income coverage will reimburse your business income while repairs are being completed.
Loss of Use
If a loss has occurred to your home and you are not able to live in it, loss of use coverage will reimburse for living expenses while repairs are being completed.


Medical payments
Pays medical and funeral expenses for you, a family member, or a passenger in your vehicle if they are injured or killed in an accident. It will also pay for medical expenses if you get hit by a vehicle while walking or riding a bike.
The lender in a mortgage, typically a bank.


Other structures
Provides coverage for structures on your property that are not attached to your house. For example, a small garden shed, detached garage, or other structure.


The cause of damage or injury such as fire, vandalism or an animal.
Personal Injury Aggregate Limit of Liability
Maximum annual amount of insurance coverage to protect you from lawsuits over issues like defamation, libel, false arrest, etc.
Personal Injury Protection (PIP)
Pays for your medical expenses, work loss, funeral expenses, and survivor benefits after an accident.
Personal property
The personal belongings you own in your home, such as your couch, TV, laptop, and clothes.
Policy period
The period of time insurance protection is granted.
The price of insurance protection.
Property damage
Covers physical damage to another person’s property when you are at fault. This coverage does not pay for your own damages.


Additional layer of liability insurance that provides coverage beyond the insured's home, auto, or other insurance limits.
Underinsured Motorists
If you or your vehicle are hit by someone who does not have enough insurance, underinsured motorists coverage will cover the difference between your bills and the other driver's insurance.
Uninsured Motorists – Bodily Injury
If you or your vehicle are hit by someone who does not have insurance, uninsured motorists coverage will pay for injury-related medical expenses to you or anyone in your vehicle.
Uninsured Motorists – Property Damage
If you are in an accident with a driver who does not have insurance, uninsured motorists-property damage will pay for the damage done to your car that you are legally entitled to recover.