Insurance Glossary

Generally detached structures, such as a garage or tool shed, sharing property with the insured dwelling.

A single insurance policy that combines several coverage's previously sold separately. Examples include homeowners insurance and commercial multiple peril insurance.

The cause of a possible loss; for example, fire, theft, or windstorm.

A written contract for insurance between an insurance company and policyholder stating details of coverage.

The amount of money remaining after an insurer’s liabilities are subtracted from its assets. It acts as a financial cushion above and beyond reserves, protecting policyholders against an unexpected or catastrophic situation.

The particular location of the property or a portion of it as designated in an insurance policy.

The amount of money an insurance company charges for insurance coverage. (See DIRECT PREMIUMS; EARNED PREMIUM)

A state tax on premiums paid by its residents and businesses and collected by insurers.