Every term on your policy, in plain English.

Actual cash value (ACV)

Replacement cost minus depreciation. A ten-year-old roof settled at ACV pays what a ten-year-old roof was worth, not what a new one costs. Cheaper premium, bigger check from your own pocket at claim time.

Additional insured

A person or business added to your policy’s liability coverage. Landlords and general contractors commonly need it before you can rent a space or start a job.

Adjuster

The carrier’s representative who investigates a claim, estimates the loss, and recommends a settlement. Independent adjusters work for the carrier too; a public adjuster is the one you would hire yourself.

Aggregate limit

The most a policy will pay across all claims in a policy period, as opposed to the per-occurrence limit for any single claim.

Appraisal clause

A dispute-resolution process written into most property policies. If you and the carrier disagree on the amount of a loss, each side hires an appraiser and the two select an umpire.

Binder

Temporary proof that coverage is in force before the full policy is issued. It is real coverage, not a promise of it.

Bodily injury liability

The part of a liability policy that pays for injuries you cause to other people. In Oregon auto policies it is the first two numbers in a limit like 25/50/20.

Broad form

A middle tier of property coverage, listing more covered perils than a basic form but fewer than an open-perils (special form) policy.

Claim

A formal request to your carrier for payment under the terms of your policy.

Coinsurance

A property-policy clause requiring you to insure to a set percentage of replacement value, commonly 80%. Insure for less and your claim payment is reduced proportionally, even for a partial loss.

Collision coverage

Pays to repair your own vehicle after a collision, regardless of who was at fault. Separate from comprehensive.

Comprehensive coverage

Pays for damage to your vehicle from things that are not collisions: theft, vandalism, fire, hail, falling branches, and the gravel-chip windshield that Oregon drivers know well.

Declarations page

The summary page at the front of your policy listing who is insured, what is covered, the limits, the deductibles, and the premium. If you only ever read one page, read this one.

Deductible

What you pay out of pocket before coverage responds. A $1,000 deductible on a $4,000 loss means the carrier pays $3,000. Raising it lowers your premium and raises your exposure.

Depreciation

The loss in value of property over time from age and wear. Central to the difference between actual cash value and replacement cost.

Dwelling coverage (Coverage A)

The part of a homeowners policy that pays to repair or rebuild the structure itself. It should track the cost to rebuild, which is not the same as market value or your mortgage balance.

Earthquake endorsement

An add-on that covers earthquake damage, which standard Oregon homeowners policies exclude outright. Typically carries a percentage deductible rather than a flat dollar amount.

Endorsement

An amendment attached to a policy that adds, removes, or changes coverage. Also called a rider.

Exclusion

Something the policy specifically does not cover. Reading the exclusions is how you find out what you actually bought.

Full coverage

Not a real coverage type. It is a colloquialism, usually meaning liability plus comprehensive and collision. Ask what the limits actually are.

General liability

Commercial coverage for third-party bodily injury and property damage arising from your business operations, premises, or completed work.

Grace period

The window after a missed premium payment during which the policy stays in force. Length varies by state and line of coverage.

Hazard

A condition that increases the chance or size of a loss, a wood-shake roof in a wildfire zone, an unfenced pool, a delivery van driven daily in traffic.

Indemnity

The principle that insurance restores you to the financial position you were in before the loss, rather than leaving you better off.

Lapse

A gap in coverage. Lapses raise your future rates and can force you into higher-cost carriers, which is why we would rather you call us than simply stop paying.

Liability limit

The maximum a policy pays for a covered liability claim. Written as split limits (25/50/20) or a combined single limit.

Loss assessment

Condo coverage for your share of a master-policy loss the association charges back to unit owners. Often underbought and often painful.

Loss of use

Pays for extra costs like a hotel, meals, and storage when a covered loss makes your home unlivable.

Medical payments (MedPay)

Small-limit, no-fault coverage for medical bills after an accident, for you and your passengers on auto policies or for guests injured at your home.

Named insured

The person or entity listed on the declarations page as the policyholder. Coverage for others depends on how the policy defines “insured”.

Named perils

A policy that covers only the causes of loss it explicitly lists. The opposite of open perils.

Non-renewal

The carrier declining to continue the policy at the end of its term. Different from cancellation mid-term and usually needs advance notice.

Occurrence

An accident or continuous exposure that results in a loss. Liability limits are often stated per occurrence and in aggregate.

Open perils (special form)

A property policy that covers all causes of loss except those specifically excluded. Broader than named perils and generally what you want.

Other structures (Coverage B)

Detached structures on your property: a garage, shed, fence, or that backyard studio. Usually a percentage of your dwelling limit.

Personal injury protection (PIP)

Oregon-required auto coverage that pays medical expenses and some wage loss for you and your passengers regardless of fault.

Personal property (Coverage C)

Your belongings. Usually a percentage of the dwelling limit on a homeowners policy, and the main coverage on a renters policy.

Premium

What you pay for the policy. Rates are set by the carrier and filed with the state; the same carrier should not quote you differently through two agents.

Replacement cost

Pays what it costs to replace damaged property with new property of like kind and quality, without deducting for depreciation. Costs more up front and is almost always worth it.

Rider

See endorsement. Same thing, different word, depending on the carrier.

Scheduled personal property

Specific high-value items, a ring, a camera rig, a musical instrument. Listed individually with their own limit, usually with no deductible and broader coverage than the blanket personal property limit.

SR-22

Not insurance. A certificate your carrier files with the state proving you carry required liability coverage, generally after a serious violation or a lapse.

Subrogation

Your carrier’s right to recover what it paid you from the party actually at fault. When it works, you often get your deductible back.

Surety bond

A three-party guarantee that you will perform an obligation. Not insurance for you. It protects the party requiring the bond, and you repay the surety if it pays out.

Umbrella policy

Excess liability coverage sitting above the limits of your auto and home policies, typically in million-dollar increments and usually far cheaper than people expect.

Underinsured motorist (UIM)

Covers you when the at-fault driver has some liability coverage, but not enough to cover your injuries.

Uninsured motorist (UM)

Covers you when the at-fault driver has no liability coverage at all, or cannot be identified in a hit-and-run.

Underwriting

The carrier’s process of deciding whether to insure a risk and at what price. It is why two identical-looking houses can get very different quotes.

Waiver of subrogation

A contract term giving up your carrier’s right to recover from another party. Commonly demanded in commercial leases and construction contracts; tell us before you sign one.

Workers’ compensation

Coverage for employee injury and illness arising from work. Required for most employers in both Oregon and Washington, with the rules differing meaningfully between the two states.

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