Insurance Glossary

Actual Cash Value (ACV)

A claims settlement that pays replacement cost minus depreciation. ACV pays less than replacement cost — most noticeably on older roofs.

Additional Insured

A person or business added to your liability policy so they’re also protected — commonly required by general contractors, clients, and landlords. Learn more →

Bodily Injury Liability

Coverage that pays for injuries you cause to others. In Texas auto, the minimum is $30,000 per person / $60,000 per accident. Learn more →

Business Owner’s Policy (BOP)

A bundle of general liability and commercial property for small businesses, usually cheaper than buying the two separately. Learn more →

Certificate of Insurance (COI)

A document proving you carry coverage, often required before a job or lease. We can issue these quickly once you’re covered. Learn more →

Collision Coverage

Pays to repair or replace your vehicle after an accident, regardless of fault. Learn more →

Comprehensive Coverage

Covers non-collision damage to your vehicle — theft, hail, fire, flooding, and animal strikes. Learn more →

Deductible

The amount you pay out of pocket on a claim before insurance pays. Higher deductibles lower your premium.

DP-3 (Landlord Policy)

A dwelling policy form built for rental properties, covering the structure, owner liability, and lost rent. Learn more →

Dwelling Coverage (Coverage A)

The part of a home policy that insures the structure itself. Your wind/hail deductible is usually a percentage of this amount. Learn more →

Endorsement

An add-on or change to your policy that adds, removes, or modifies coverage.

Errors & Omissions (E&O)

Also called professional liability — protects you when a client claims your advice or work caused them a financial loss. Learn more →

Flood Insurance

Separate coverage for damage from rising water, which home policies exclude. Available through the NFIP and private carriers. Learn more →

Garagekeepers Coverage

Protects customers’ vehicles while in your care — essential for auto repair shops, detailers, and dealers. Learn more →

General Liability

Core business coverage for third-party bodily injury and property damage claims. Learn more →

HO-6 (Condo Policy)

A condo owner’s policy covering everything from the walls inward, plus liability and loss assessment. Learn more →

Liability Coverage

Pays for injury or damage you cause to others, including legal defense. It does not cover your own property.

Loss Assessment

HO-6 coverage that helps pay your share when a condo association assesses owners for a shortfall on a common-area claim. Learn more →

Loss of Use

Pays additional living costs (like a hotel) if a covered loss makes your home temporarily unlivable.

Non-Owner SR-22

An SR-22 for drivers who must prove financial responsibility but don’t own a vehicle. Learn more →

Ordinance or Law Coverage

Pays the extra cost of rebuilding to current building codes after a covered loss — important for older homes. Learn more →

Premium

The amount you pay for your insurance policy, typically monthly, semi-annually, or annually.

Replacement Cost (RCV)

A settlement that pays to repair or replace property at today’s prices, without subtracting depreciation.

SR-22

A certificate your insurer files with Texas DPS proving you carry required liability coverage — not a policy itself. Learn more →

Umbrella Insurance

Extra liability coverage that sits on top of your home and auto (personal) or business policies. Learn more →

Uninsured/Underinsured Motorist

Protects you when the at-fault driver has no insurance or not enough to cover your losses. Learn more →

Wind & Hail Deductible

A separate, usually percentage-based deductible (commonly 2% in 2026) applied to wind and hail claims in Texas. Learn more →

Workers’ Compensation

Covers employee injuries and lost wages on the job and protects employers from related lawsuits. Learn more →

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