Glossary of frequently used insurance terms
ACV (Actual Cash Value)
A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation.
Additional Living Expenses
Extra charges covered by homeowners policies over and above the policyholder’s customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.
A survey to determine a property’s insurable value, or the amount of a loss.
Temporary authorization of coverage issued prior to the actual insurance policy.
Bodily Injury Liability Coverage
Portion of an auto insurance policy that covers injuries the policyholder causes to someone else.
Portion of an auto insurance policy that covers the damage to the policyholder’s car from a collision.
Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car or object (including damage from fire, explosions, earthquakes, floods and riots, and theft).
Part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums and supplemental information. Referred to as the “dec page.”
The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid.
The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.
Funds that a lender collects to pay monthly premiums in mortgage and homeowners insurance, and sometimes to pay property taxes.
A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.
A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions. Sometimes called a rider.
Coverage protecting property against losses caused by a fire or lightning that is usually included in homeowners or commercial multiple peril policies.
An automobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. Mainly used for leased cars.
Insurance scores are confidential rankings based on credit information. This includes whether the consumer has made timely payments on loans, the number of open credit card accounts and whether a bankruptcy filing has been made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial assets. It does not include information about income or race.
Loss of Use
A provision in homeowners and renters insurance policies that reimburses policyholders for any extra living expenses due to having to live elsewhere while their home is being restored following a disaster.
Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.
A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Medical Payments Insurance
A coverage in which the insurer agrees to reimburse the insured and others up to a certain limit for medical or funeral expenses as a result of bodily injury or death by accident. Payments are without regard to fault.
Named Perils Policy
Only provides coverage for losses specifically listed on an insurance policy.
Open Peril Policy
An Open Peril Policy provides coverage from all perils except those that are specifically excluded.
A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the open peril policy in contrast to an all-risk policy or open peril policy, which covers all causes of loss except those specifically excluded.
Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property. Property/casualty insurance, which includes auto, homeowners and commercial insurance, is one segment of the insurance industry. The other sector is life/health. Outside the United States, property/casualty insurance is referred to as nonlife or general insurance.
Personal Belongings Coverage
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters.
Personal Injury Protection (PIP)
Portion of an auto insurance policy that covers the treatment of injuries to the driver and passengers of the policyholder’s car.
A written contract for insurance between an insurance company and policyholder stating details of coverage.
The price of an insurance policy, typically charged annually or semiannually.
Property Damage Liability
Coverage for damage the policyholder causes to someone else’s property.
Insurance that pays the dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited to the maximum dollar amount shown on the declarations page of the policy.
A list of individual items or groups of items that are covered under one policy or a listing of specific benefits, charges, credits, assets or other defined items.
Sewer Back Up Coverage
An optional part of homeowners insurance that covers damage from sewage backing up into the home.
The condition of an automobile or other property when damage is so extensive that repair costs would exceed the value of the vehicle or property.
Uninsured Motorist Coverage
Portion of an auto insurance policy that protects a policyholder from uninsured and hit-and-run drivers.
Examining, accepting, or rejecting insurance risks and classifying the ones that are accepted, in order to charge appropriate premiums for them.
Source: Insurance Information Institute
Goosehead is the very definition of
great customer service.
Angel was awesome and so helpful! She quoted out exactly what I was interested in, paid attention to my particular requests, and informed me of another added coverage I could get for literally CENTS extra a month. WOW is all I’ve got to say!!!!!
McKenna C ., Denton, TX
She was very personable and sincere. In today’s age of poor customer service she was definitely a bright spot, and speaking to someone who speaks clearly and well is a bonus. Overall, the agency has insured my cars and homes better than with past agencies, and at fair pricing.
Debra A ., Canadian Lakes, MI
Matthew! Very good listener, patient with me, knowledgeable, easy to understand, and eager to help. He was great. Thank you!
Denise J ., Hudson Falls, NY
The agent went above and beyond to help me and answer all my questions; by far out of all the calls I've had this had been the best experience. I even think I might be moving to Dallas due to him even selling me on the city. I loved our conversation and he kept me up to date with everything.
Pablo B ., Middle River, MD
I called in to get a copy of my Homeowner’s Policy, because my home was damaged and I wanted to understand my coverages. I spoke with Arthur today and he took the time to go over and explained my Coverages A-F. He has been by far the most concerned and helpful person, which made me feel like a valued insured.
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I have been a Goosehead client for years and there's a reason why - unparalleled service. Josie was most certainly not an exception to that. Thank you for your time and help yesterday, Josie! Much appreciated.
Adibfar P ., Austin, TX
Olivia was so professional. She took her time and worked hard on every detail. We have recommended Gooshead to many of our friends and family. Lots of trust with this wonderful company.
Deborah A ., Highland Village, TX
Kate provided excellent customer service. She had a wonderful attitude, completed the follow through for my question and ensured that I was happy with the result.
Brenda K ., Hartselle, AL
We were driving 5 hours to purchase a brand new vehicle sight unseen. We needed car insurance in place before we drove the car off the lot. Ms. Bacon took the time to explain all the details and when we were disconnected which occurred a few times due to our travel through rural Texas, Ms. Bacon promptly called us back. She went above and beyond.
Jeffrey B ., Lubbock, TX
Dylan was very knowledgeable and provided excellent customer service. Being a new customer I find his help a positive experience and feel we are in good hands.
Charles O ., Ocala, FL
Excellent attention to my insurance needs and focus on getting me the best value.
James L ., Boerne, TX
Mack was very personable and helpful! It was a pleasure having him help with our needs. Usually it’s not fun or enjoyable to contact your insurance agent or it’s a hassle, however, Mack was awesome! I hope next time I have issues he answers my call.
Shanda P ., Cottonwood, CA
Spencer was very kind, energetic, and knowledgeable. He took the time to explain all of my options and was patient with all my many, many questions. He made my re-shop quick and easy and just an all around positive experience! A+ customer service experience and is definitely my main reason for recommending this company to friends and family.
Christopher D ., Haslet, TX
Dylan gave yet another display of thoroughness from a Goosehead Agent. I am so happy I was referred to you all, and I look forward to working with you in the future. He made an update to my policy for me and also took the extra time to discover another added benefit to my policy that was no additional cost to me. He could have made the change and been done with it, but he gave full time and attention to my policy and making it as good as possible. Goosehead has quickly earned my full confidence and trust.
Betteanne B ., Greeley, CO
She was extremely helpful with all of my questions and very clear in what would be covered and what would not be. Added a car to my policy and actually saved money AND upped my PIP at the same time.
Aaron H ., Austin, TX