Insurance Glossary

Citizens is responsible for paying hurricane and other covered claims to its policyholders. If Citizens funds are depleted after a catastrophic event, resulting in a deficit, assessments are levied according to Florida law. This ability to levy assessments provides Citizens with resources to pay claims after an event. Below is a summary of the Regular Assessment. A broad base of licensed Florida property and casualty insurance companies, including property and automobile insurers are assessed if a deficit remains. These companies are required to remit their share of the Regular Assessment to Citizens within 30 days of the levy and are permitted to recoup this amount by passing it on their policyholders at renewal. Insureds who purchase coverage from surplus lines insurers are also subject to the regular assessment. This assessment can be up to 6 percent per account of assessable premium. That means that assessable insurers, and thus their policyholders, could be assessed a maximum of 18 percent of assessable premium if there is a deficit in all 3 of Citizens' accounts. This assessment is a one-time assessment. Citizens policyholders are not charged this assessment. If the Citizens Policyholder Surcharge and the Regular Assessment do not cure a deficit for any account, the Emergency Assessment is levied.

Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. Also called security.

Synonym for insurance.

The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwelling; and Materials and supplies located on or next to the "residence premises" used to construct, alter or repair the dwelling or other structures on the "residence premises." This coverage does not apply to land, including land on which the dwelling is located.

Other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located.

Personal property owned or used by an "insured" while it is anywhere in the world. By will cover personal property owned by: Others while the property is on the part of the "residence premises" occupied by an "insured"; A guest or a "residence employee," while the property is in any residence occupied by an "insured."

Coverage D or Loss of Use pays out in the event that you are unable to live in your primary home due to a covered loss.

Medical Payments for a set amount of time payable towards injuries sustained by someone that is not the insured or regular resident of the property.