FL Property & Casualty key terms

A principle holding that insurance should restore an insured to roughly the same financial position held before a loss, no better and no worse, by paying the value of covered damage rather than a windfall.

A financial stake in the property or activity insured such that the insured would suffer a real economic loss if a covered event occurred; generally required when coverage begins and when a property loss happens.

The principle that both parties must deal honestly and disclose facts material to the risk, because the insurer relies on the applicant's statements instead of inspecting everything itself before issuing coverage.

An agreement in which the amounts exchanged are unequal and depend on chance; the insured pays a fixed premium while the insurer may owe nothing or may pay far more than the premium collected.

A contract written by the insurer and offered to the applicant on a take-it-or-leave-it basis; because the insured had no part in drafting it, ambiguous language is generally read against the insurer.

The insurer's right, after paying a covered claim, to step into the insured's shoes and recover the amount paid from the party that caused the loss, preventing double recovery by the insured.

Waiver is voluntarily giving up a known right under the policy; estoppel bars a party from later asserting that right when another party reasonably relied on the earlier surrender to their detriment.

The intentional withholding of a fact material to the risk being insured; if the omitted fact would have changed the insurer's decision to issue coverage or set the premium, the policy may be voided.

A false or misleading statement of fact that would have influenced the insurer's decision to accept the risk, set the premium, or issue the policy; it can allow rescission or denial of a claim.

A valuation method that pays the cost to repair or replace damaged property minus depreciation, reflecting what the property was worth just before the loss occurred.

A valuation method that pays the cost to repair or replace damaged property with new property of similar kind and quality, without deducting depreciation, and usually subject to policy limits.

A property policy condition requiring the insured to carry insurance equal to a stated percentage of the property's value; if the insured carries less, each claim is reduced in proportion to the shortfall.

The amount of a covered loss the insured must absorb before the insurer responds; it may be a flat dollar figure or a percentage of insured value, applied per occurrence or per policy period.

A property coverage approach that insures against all risks of direct physical loss except those specifically excluded, so the insurer must prove an exclusion applies rather than the insured proving a peril was listed.

A property coverage approach that pays only for losses caused by perils the policy specifically lists, such as fire, windstorm, or theft, leaving the insured to show the loss came from a listed cause.

Reimbursement for the extra cost of living elsewhere, such as temporary housing and meals above normal expenses, when a covered loss makes the home uninhabitable; subject to time and dollar limits.

Coverage for the added expense of repairing or rebuilding in compliance with current building codes, and for the value of undamaged portions that must be demolished under those codes.

Coverage for losses from rising water such as storm surge, overflowing rivers, or mudflow, which standard property policies exclude; written by the National Flood Insurance Program or private insurers, often with a waiting period.

Failure to use the care a reasonable person would exercise in similar circumstances; a liability claim requires a duty owed, a breach of that duty, proximate cause, and actual damages.

An accident, including continuous or repeated exposure to substantially the same harmful conditions, that causes bodily injury or property damage during the policy period.

Liability coverage that responds to claims first made or reported during the policy period, regardless of when the injury occurred, usually with a retroactive date and an extended reporting period option.

Liability coverage for offenses such as libel, slander, invasion of privacy, wrongful eviction, and infringement of copyright or advertising ideas, separate from bodily injury and property damage.

The most an insurer will pay for all covered claims combined during a policy period, in addition to any per-occurrence limit; once it is used up, no further claims are paid that period.

Amounts a liability insurer pays on top of the limits of liability, such as defense costs, bonds, and interest on judgments, so that defending a claim does not reduce the coverage available for damages.

A commercial policy covering third-party claims for bodily injury, property damage, and personal and advertising injury arising from the insured's premises, operations, products, or completed work.

Commercial property coverage that replaces lost net income and continuing normal operating expenses while a covered loss shuts down or slows the business, commonly after a short waiting period.

Excess liability coverage above underlying general liability, auto, and employers liability policies that also can drop down to cover certain losses the underlying policies exclude or do not cover.

A standard policy for private passenger autos providing liability, medical payments, uninsured motorist, and physical damage coverages, along with eligibility rules, duties after loss, and exclusions.

Auto liability limits stated as three numbers, such as 10/20/5, meaning the maximum per person for bodily injury, per accident for bodily injury, and per accident for property damage.

Florida no-fault coverage that pays a portion of the insured's own medical bills, lost wages, and certain other expenses after an auto accident regardless of fault, subject to statutory limits and deadlines.

Coverage paying the insured for damages caused by a driver with no liability insurance or with limits too low to cover the loss; Florida insurers must offer it, and insureds may reject it in writing.

Auto coverage that pays reasonable medical and funeral expenses for the insured and passengers injured in an accident, up to the stated limit, regardless of who caused the accident.

Florida statute requiring owners of vehicles registered in the state to carry personal injury protection and property damage liability coverage, and to claim certain benefits without proving fault.

A license issued by Florida's Office of Insurance Regulation that authorizes an insurer to transact specified lines of insurance business in the state.

Insurance placed with a non-admitted insurer when authorized carriers decline the risk; Florida requires a documented diligent effort to find admitted market coverage before placement.

A producer's duty to hold premiums and other funds belonging to insurers or clients in trust, account for them properly, and avoid commingling them with personal or general business funds.

Acts prohibited by Florida law, including misrepresenting policy provisions, failing to investigate promptly, and offering unreasonably low settlements, especially when repeated as a general business practice.

Florida's state-created, not-for-profit insurer of last resort, providing residential and commercial property coverage to owners who cannot obtain it from private insurers.

A state catastrophe fund that reimburses participating insurers for a share of hurricane losses above their retention, helping keep Florida property insurance available and affordable.