Florida Insurance Glossary
Plain-English definitions of common Florida homeowners, auto, flood, condo, renters, and business insurance terms. Use the search box to find a term, then follow the related Sun Insurance resources for deeper explanations.
Actual Cash Value (ACV)
The value of property after depreciation is considered. ACV settlements can be lower than replacement-cost settlements for the same damaged property.
Additional Living Expense (ALE)
Coverage that may help pay increased living costs when a covered loss makes a residence unfit to live in, subject to policy limits and conditions.
Additional Insured
A person or organization added to certain liability coverage because of a business or contractual relationship with the named insured. The scope depends on the endorsement.
Business Owner’s Policy (BOP)
A commercial package that commonly combines property and liability coverage for eligible small or midsize businesses. Eligibility and included coverages vary by insurer.
Citizens Property Insurance
Florida’s residual property insurer. Eligibility depends on Florida law, Citizens rules, available private-market offers, and the type of property being insured.
Collision Coverage
Auto physical-damage coverage that may pay for eligible damage to your insured vehicle caused by a collision or upset, subject to the deductible and policy terms.
Commercial Auto Insurance
Insurance for eligible vehicles and driving exposures used in a business. Coverage can include liability, physical damage, uninsured motorist, and other options depending on the policy.
Commercial General Liability (CGL)
Business liability coverage that may respond to covered third-party bodily injury, property damage, personal and advertising injury, and certain completed-operations claims.
Comprehensive Coverage
Auto physical-damage coverage for many non-collision losses, such as theft, vandalism, fire, falling objects, and certain weather-related damage, subject to the policy.
Coverage A – Dwelling
The homeowners coverage section for the insured dwelling. The limit should reflect the policy’s valuation method and the amount needed to rebuild the covered structure, not its market value.
Coverage B – Other Structures
Homeowners coverage for eligible structures separated from the dwelling, such as a detached garage, shed, or fence. Limits vary by policy.
Coverage C – Personal Property
Homeowners or renters coverage for eligible belongings, subject to limits, exclusions, and special limits that may apply to categories such as jewelry or collectibles.
Coverage D – Loss of Use
Homeowners coverage that may help with additional living expenses and certain lost rental income after a covered loss, subject to policy terms and limits.
Coverage E – Personal Liability
Homeowners liability coverage that may respond when an insured is legally responsible for covered bodily injury or property damage to another person.
Coverage F – Medical Payments to Others
Homeowners coverage that may pay certain medical expenses for eligible people injured on the insured premises or because of certain insured activities, generally without requiring a liability determination.
Cyber Insurance
Commercial insurance that may cover certain data-breach response costs, cyber extortion, data restoration, business interruption, privacy liability, network-security liability, and related expenses, depending on the policy.
Declarations Page
The policy summary showing key information such as named insureds, property or vehicles, coverage limits, deductibles, forms, endorsements, and policy dates.
Deductible
The amount or percentage of an eligible covered loss that the insured is responsible for before insurance pays according to the policy.
Endorsement
A form that changes the terms of an insurance policy by adding, removing, or modifying coverage, conditions, exclusions, or limits.
Exclusion
A policy provision identifying property, causes of loss, situations, people, or types of damage that are not covered or are limited.
Flood Insurance
Separate coverage for qualifying flood losses. Standard homeowners policies generally do not cover flood, including many losses caused by rising water or storm surge.
Flood Zone
A FEMA flood-map designation used to describe flood risk. Flood risk exists outside high-risk zones, so zone designation alone does not determine whether flood insurance is useful.
FR-44
A Florida financial-responsibility filing associated with certain serious driving offenses. Required limits and filing periods depend on the driver’s circumstances and Florida law.
Hurricane Deductible
A separate deductible that may apply to covered hurricane losses under a Florida residential property policy. Florida law regulates the deductible options and when a hurricane deductible applies.
Inland Marine
Coverage for certain movable, portable, specialized, or transported property, such as contractor equipment, tools, valuable articles, or property away from a fixed business location.
Insurance Limit
The maximum amount an insurer may pay for a particular coverage, loss, occurrence, person, item, or policy period, subject to the policy terms.
Loss Assessment Coverage
Condo or homeowners coverage that may help pay an insured’s share of certain assessments charged by an association after a qualifying covered loss, subject to the policy and applicable law.
Named Insured
A person or organization specifically identified as an insured on the policy declarations. Rights and responsibilities can differ from those of other insured persons.
Ordinance or Law Coverage
Property coverage that may help pay certain increased rebuilding costs required by current building codes after a covered loss. Limits and triggers vary by policy.
Personal Injury Protection (PIP)
Florida no-fault auto coverage that provides statutory medical, disability, and death benefits for eligible people after a motor-vehicle accident. Florida law currently provides up to $10,000 in medical and disability benefits, subject to statutory requirements.
Peril
A cause of loss, such as fire, wind, theft, or lightning. Whether a peril is covered depends on the policy form, exclusions, and endorsements.
Premium
The amount charged for insurance coverage. Premium is affected by the type of risk, limits, deductibles, location, claims history, rating factors, and carrier underwriting.
Replacement Cost
A valuation method that generally does not subtract depreciation from the cost to repair or replace covered property, subject to policy terms, limits, and conditions.
Roof Age
The age of a property’s roof. In Florida, roof age, material, condition, remaining useful life, inspections, and documentation can affect property-insurance eligibility and pricing.
Scheduled Personal Property
An endorsement or separate coverage that specifically lists valuable property such as jewelry, fine art, collectibles, or certain equipment, often with different limits or coverage terms.
Sinkhole Coverage
Coverage for qualifying sinkhole loss. Florida property policies distinguish catastrophic ground cover collapse from broader sinkhole loss coverage, and available options vary by policy and insurer.
SR-22
A financial-responsibility filing that an insurer may submit for a driver when required by Florida law. It is not itself an insurance policy.
Storm Surge
An abnormal rise in coastal water associated with a storm. Storm-surge damage is generally treated as flood rather than wind damage under standard homeowners insurance.
Sublimit
A smaller limit that applies to a specific type of property, expense, or loss within a policy’s broader coverage limit.
Umbrella Insurance
Liability coverage designed to provide additional limits above qualifying underlying policies and, in some cases, broader coverage subject to its own terms and exclusions.
Underinsured Motorist (UIM)
Coverage that may protect insured people when an at-fault driver has bodily injury liability insurance but not enough to cover qualifying damages. Florida commonly addresses UM and UIM together under uninsured motorist coverage.
Uninsured Motorist (UM)
Coverage that may protect insured people legally entitled to recover damages from an uninsured or underinsured motorist. Florida law requires qualifying insurers to offer UM coverage unless it is rejected or lower limits are selected in writing.
Water Backup Coverage
Coverage often added by endorsement for certain water damage caused by backup through sewers or drains or overflow from a sump. It is different from flood insurance.
Wind Mitigation Inspection
A Florida inspection documenting wind-resistant construction features such as roof geometry, roof-to-wall connections, roof-deck attachment, and opening protection that may qualify for property-insurance credits when applicable.
Workers’ Compensation Insurance
Coverage that can provide statutory benefits for eligible work-related injuries or occupational illnesses. Florida coverage requirements depend on industry, employee count, ownership, and exemptions.
Related Florida Insurance Guides
Florida Insurance Glossary FAQ
Does homeowners insurance cover hurricane damage in Florida?
Homeowners insurance may cover qualifying wind damage caused by a hurricane, subject to the policy’s covered-peril language, exclusions, limits, and hurricane deductible. Flood and storm surge are generally separate flood exposures.
Does homeowners insurance cover flood damage?
Standard homeowners insurance generally does not cover flood. Flood insurance is usually purchased separately through the National Flood Insurance Program or a private flood insurer.
What is PIP in Florida auto insurance?
Personal Injury Protection is Florida no-fault auto coverage providing statutory medical, disability, and death benefits to eligible people after a motor-vehicle accident, subject to Florida law and policy terms.
What is the difference between replacement cost and actual cash value?
Replacement cost generally values covered property without subtracting depreciation, while actual cash value generally reflects depreciation. The policy determines which valuation applies and what conditions must be met.
What is an insurance endorsement?
An endorsement changes the policy by adding, removing, or modifying coverage, conditions, exclusions, limits, or other terms.
What is the difference between a deductible and a coverage limit?
A deductible is the insured’s share of an eligible covered loss before insurance pays according to the policy. A coverage limit is the maximum amount the insurer may pay for a particular coverage, subject to policy terms.
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