A practical glossary for clients who want clearer insurance language before the next conversation.
The live Stover & Crouch glossary is a broad educational resource. This version keeps the same intent while focusing on the most common terms local clients are likely to hear during quote, service, and claim conversations.
Definitions can help, but your actual policy wording still controls.
The goal of this page is not to replace policy language or legal definitions. It is to give people a faster, friendlier starting point when insurance terminology feels opaque or overly technical.
If a term on your policy seems to conflict with the general explanation below, use the policy wording first and call the office for help applying it to your situation.
- Definitions vary by carrier, product, and state rules
- Your policy forms and endorsements always matter more than a general glossary
- Coverage questions should still be reviewed with the office before you rely on an assumption
- This page is meant to make conversations easier, not replace them
Some of the most common terms clients hear during quotes, renewals, and claims.
These definitions are intentionally plainspoken so clients can scan them quickly and walk into the next conversation with better context.
A Terms
- Actual Cash Value
- The value of damaged or stolen property after depreciation is taken into account.
- Additional Insured
- A person or organization added to a policy for certain liability protection.
- Aggregate Limit
- The most an insurer will pay during the policy period for covered losses of a certain type.
B and C Terms
- Binder
- A temporary document showing coverage is in place until the policy is formally issued.
- Bodily Injury Liability
- Coverage that may pay when you are legally responsible for injuries to someone else.
- Certificate of Insurance
- A document summarizing certain policy details, often requested in business settings.
- Claim
- A request to the insurer asking for payment or other handling of a covered loss.
D and E Terms
- Deductible
- The amount you pay out of pocket before the insurer pays its share of a covered loss.
- Endorsement
- A change to the policy that adds, removes, or modifies coverage terms.
- Exclusion
- A loss, hazard, or situation the policy says is not covered.
L and N Terms
- Liability Limit
- The maximum amount a policy may pay for covered liability claims.
- Loss Ratio
- A measure insurers use to compare claims paid with premium collected.
- Named Perils
- A policy structure that covers only the specific causes of loss listed in the form.
O and P Terms
- Occurrence
- An event or accident that may trigger coverage under certain liability forms.
- Peril
- A cause of loss, such as fire, hail, theft, or wind.
- Premium
- The price paid for insurance coverage.
- Policyholder
- The person or entity that owns the policy.
R through U
- Replacement Cost
- The amount needed to repair or replace property without subtracting depreciation, if covered that way.
- Underwriting
- The process of evaluating risk and deciding how a policy should be priced or issued.
- Umbrella Liability
- Extra liability protection that may sit above certain other liability policies.
Definitions are helpful. Interpretation is where the office still matters most.
Two policies can use similar words and still work differently depending on endorsements, exclusions, and carrier forms. If a term affects a real claim, contract, or coverage decision, call the office and let the team walk through it with you.
Want help translating policy language into a real recommendation?
Read the terms, then call the office or head back to Support if you want to turn general definitions into a practical next step.