Insurance Glossary

An insured's share of a loss assessment for property damage or liability, which is charged by a corporation or association of property owners. Homeowners policies provide some coverage for loss assessments charged against the insured as owner or tenant of a residence.

Percentage of each premium dollar an insurer spends on claims.

The company’s best estimate of what it will pay for claims, which is periodically readjusted. They represent a liability on the insurer’s balance sheet.

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.

A lender or creditor, typically a bank, who holds the mortgage, and lends money secured by the value of the mortgaged property.

States where insurance companies can set new rates without prior approval, although the state’s commissioner can disallow them if they are not reasonable and adequate or are discriminatory.

The protection of windows and glass doors from flying debris is one of the most basic and effective means of reducing losses in a windstorm. Class A (Hurricane Impact) – All exterior wall and roof openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant glazing that meet the requirements of one of the following: SSTD12; ASTM E 1886 and ASTM E 1996(Missile Level C – 9 lb); Miami-Dade PA 201, 202, and 203; or Florida Building Code TAS 201, 202 and 203. 1 to 4 unit buildings only - Class B (Basic Impact) - All exterior wall and roof openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant glazing that meet the requirements of ASTM E 1886 and ASTM E 1996 (Missile Level B – 4.5 lb). Class C (Ordinary Non-Impact) – All glazed openings (windows, skylights, sliding glass doors, doors with windows, etc) must by protected with shutter devices or wood structural panels that have the following characteristics. Corrugated storm panels made of Steel, Aluminum, or Polycarbonated in which individual panels are no wider than 14” and have a nominal profile of 2” of greater. Roll-Up shutters with aluminum slats. Accordion shutters with aluminum slats. Colonial or Bahama shutters with all the following features: Heavy gauge metal frames Extruded aluminum slats that are anchored to both sides of froma, or solid metal backing plate in place behind slats Structural hinges Mechanism to lock shutters closed during a storm Wood Structural Panels – (One of two story buildings) Plywood or OSB (oriented strand board) with a minimum thickness of 7/16 inches and maximum panel span of 8 feet. Panels must be pre-cut to cover the glazed openings with attachment hardware provided. For locations with design wind speed greater than 130 mph, attachments shall be designed to resist component and cladding loads of the FBC. For locations where design wind speed is 130 mph or less, panels must be fastened according to the Florida Building Code Table 1606.1.4.

Coverage for the additional loss caused by the enforcement of laws that regulate building repair or construction.