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We’ve compiled an insurance glossary to help you make sense of some of the insurance terms on our website.
Keep in mind that our terms and definitions are intended for information purposes only, and the way they’re interpreted and applied may vary slightly from state to state. These terms and definitions do not replace or otherwise alter the definitions and information that appear in individual insurance policies.
The value of the property lost or damaged at the time of the loss. See depreciation.
Coverage for electronic equipment that receives or transmits audio, visual or data signals and is not designed solely for the reproduction of sound, as well as any accessories used with such equipment. These devices do not need to be permanently installed in the vehicle.
A person or party, other than the policyholder, who is added to a policy so that they will also be covered by
that policy.
This coverage provides a specified amount per day for additional expenses in the event that you cannot live in your insured residence.
Parts made by a company other than the manufacturer of the auto. See original equipment manufacturer.
An antique automobile is a private passenger automobile that is 25 years old or older and has been restored, maintained or preserved by antique automobile hobbyists.
An estimate of the property value, or of the extent of property damage, provided by an authorized person. Appraisals are performed to determine the value of the property at the time of the loss.
Intentional and malicious burning of property.
Covers damage resulting in bodily injury or death sustained by others, including covered medical costs, that you become legally responsible for as a result of a covered auto accident.
This homeowners insurance coverage may help pay to replace or repair personal property without depreciation being taken from the value of the property.
Pays for damages to additions, alterations, fixtures, improvements or installations that you make to your rented residence or condo.
Cameras and accessories are covered up to the stated limit in your policy declaration. A special limit of liability for theft losses applies. For maximum protection, cameras and accessories should be insured under a scheduled personal property endorsement or personal inland marine policy.
Terminating an insurance contract before the specified end-date noted in the policy.
Request by a policyholder or third party from an insurance company for losses covered by an insurance policy.
A person requesting an amount for covered losses from the insurer.
A classic automobile is a rare or historic private passenger automobile that is 10 years old or older (age may vary by state) and has been restored, maintained or preserved by classic automobile hobbyists.
Refers to a location near a body of water, including but not limited to, an ocean, gulf, bay, harbor, inlet, sound, bayou or water that surrounds a barrier island.
Covers damage to your vehicle resulting from collision with another vehicle or object (subject to deductible).
Covers damage to your vehicle not caused by collision or upset (subject to deductible). Examples may include theft, vandalism, weather events and contact with animals.
Computers, including hardware and software accessories, have limited coverage under property policies. For maximum protection, computers and accessories should be insured under a scheduled personal property endorsement.
Portion(s) of an insurance policy that explains duties and responsibilities of the insured and the insurer.
Refers to the construction of a building, such as your residence. For example, frame or masonry.
This occurs when a policyholder has been insured by one or more insurance companies, without any lapse in coverage, for a specified period of time.
Like most insurers, Nationwide uses a credit-based insurance score to predict insurance losses.
Studies show that considering credit creates a more accurate insurance rate. By predicting potential losses better, Nationwide can provide a more appropriate rate for each customer. About half of our existing customers receive a rate decrease based on their credit scores.
Pays up to the amount stated on the Policy Declarations for the legal obligation of an insured to pay because of theft or unauthorized use of credit cards (including Electronic Funds Transfer cards) issued to or registered in an insured's name. This coverage also applies to forged checks and counterfeit money, but does not provide identity theft coverage.
Any after-market add-ons or accessories installed on a vehicle, such as chrome rims, ground effects body kits and off-road lights. (Customization does not include engine performance accessories or modifications.)
A summary document of an insurance policy that identifies the policyholder, the property or vehicles covered, the coverages and the premium amounts. The declarations page usually serves as the cover page of a
policy document.
The amount a policyholder agrees to pay before the insurance company covers a loss. In addition to the standard deductible, there can be different deductibles for different types of losses such as wind, hail, hurricane
or earthquake.
A decrease in the value of property due to wear, age or other cause. See actual cash value.
Type of property protection for property with multiple structures, one of which may be the primary residence.
Endorsements can alter, delete or add coverage, terms or provisions to an insurance policy.
A provision in an insurance policy that excludes and/or limits certain coverages.
A private, dues-paying organization comprised of a state's county Farm Bureau organizations. Members help advance the public interest in agriculture and participate in legislation, public information and
education programs.
Farm Bureau members may be eligible for Nationwide insurance discounts in California, Connecticut, Delaware, Maryland, New York, Ohio, Pennsylvania, Vermont and West Virginia.
If you are convicted of certain traffic violations or driving under the influence of alcohol or drugs, the state may require you to file an FR-44/SR-22 to verify that you maintain auto liability coverage. Both forms are official documents showing proof of financial responsibility, but use different titles based on your state of residence. If an FR-44/SR-22 should expire or be canceled, an insurance company will issue an FR-46/SR-26 form, which certifies the cancellation of the policy.
The address where a vehicle is usually parked or garaged, which could differ from the policyholder's primary residence or policy mailing address. Students attending school 100+ miles from home with a vehicle should use their school address as their garaging address.
A housing community with controlled entry access.
A condition that creates or increases the chance that a loss will occur. For example, a wood-burning stove may increase the chance of a loss from a fire.
Depending on the state of residence, if a policy includes coverage for wind and hail, a separate deductible for insuring damages caused by a hurricane or named storm may be required. Special terms, conditions and deductibles may apply in certain states.
This product provides insurance coverage related to fraudulent use of one's identity.
The act of compensating for a loss.
This insurance covers property that is mobile in nature and may be of high value, such as jewelry, sports equipment, fine arts, antiques, or coin or stamp collections.
A person with insurable interest will suffer a genuine hardship if a loss should occur on a person or property they've insured. For instance, people have an insurable interest in their own lives and property, but generally do not have insurable interest in their neighbor's life or property.
Insurable interest must be present in order for an insurance contract to be legal and valid.
The person or parties who are insured or protected by an insurance policy.
The company that provides the insurance coverage and services on a specific policy.
You can protect these items with a specific insurance policy. This special coverage pays for covered losses for jewelry, watches, furs and precious and semi-precious stones, up to a policy's stated limit, which is the total limit for each occurrence. For instance, if the limit on your policy is $500, that is the maximum insurance settlement you could receive under this coverage.
A special maximum limit of liability applies to theft losses. For maximum protection, including receiving coverage above the special limit on theft losses, items should be insured under a scheduled personal property endorsement or personal inland marine policy.
A lapse in coverage occurs when someone goes without insurance for a period of time.
A contract granting use or occupation of property during a specified period, in exchange for a specified rent.
An individual who possesses or has use of property through a lease.
An individual to whom a lease is granted.
Covers bodily injury and property damage to others for which you are held liable (as provided by your policy and state law).
A creditor’s claim against an owner's assets to secure an unpaid debt.
The party who has a claim on property until the satisfaction of some debt or duty. For example, a bank is the lien holder of a car until the loan is paid.
The amount an insurance company will pay for a covered loss, as stated in the policy.
Direct and accidental damage to the insured automobile or property used as the basis for filing a claim.
This coverage provides reimbursement for extra fees assessed by a condominium or homeowners association. It is subject to a deductible and the limit stated in the policy.
A history of a person's automobile or property losses.
This coverage helps pay for alternative transportation (such as bus, subway or another car) if your car cannot be driven due to a covered loss. In your policy, this also may be referred to as rental reimbursement, transportation expense or rental car expense.
Coverage that pays additional expenses when a policyholder has to move out of the residence while repairs are made, as a result of damage caused by a covered loss.
The value of property in terms of what it can be sold for in the open market.
Covers reasonable medical expenses for you and others in the event of an accident, regardless of who is at fault. In your policy, this may be referred to as medical expenses or medical benefits.
This coverage may provide payment for medical expenses resulting from an accident on your property. "Med pay" is intended for the immediate medical treatment of guests on your premises, without determining fault. This coverage is subject to specific dollar limits per incident, and availability may vary.
Statements that are false or misleading.
Steps taken to prevent or reduce the amount or likelihood of loss.
The record of a person's driving history, including details of any accidents or violations, as reported to a state's department of motor vehicles.
The person or entity specifically identified as the named insured in an insurance policy. This person is also referred to as the policyholder.
Written for someone who does not own a private passenger or commercial automobile, but would otherwise meet the qualifications for an auto policy with Nationwide. Situations may include employer-furnished vehicles, borrowing cars from friends or relatives, or frequent use of rental cars.
Covered hazards that are listed in an insurance policy.
An auto insurance provider with underwriting standards that accept high-risk drivers.
A driver who is not the usual or most frequent driver of the vehicle listed on an auto policy.
Number of people living in the property.
Coverage that provides increased cost to a covered loss resulting from an ordinance or law.
Original equipment manufacturer parts come from the manufacturer instead of aftermarket or salvage companies. An OEM endorsement ensures that aftermarket replacement parts won't be used to repair your vehicle. Policyholders must have comprehensive and/or collision coverage to add this option. See after-market parts.
In homeowners policies, this refers to a structure located on the residence premises that is not directly attached to the dwelling structure, such as a detached garage or gazebo.
This optional coverage pays to fix or replace personal property inside your RV that has been lost or damaged.
Provides coverage for certain damages awarded to others on behalf of the insured, such as covered claims for bodily injury caused by a slip and fall on your property.
Pays medical expenses to or for an insured in the event of an accident, regardless of who is at fault. May also pay for funeral costs, lost wages and costs for household services. Coverage varies from state to state.
Property owned or used by an insured.
A personal umbrella insurance policy offers an extra layer of liability protection for your assets if there's a serious auto accident or accident on your property. Otherwise, you could be liable for more than your current auto or homeowners coverage limits.
Refers to visual damage to a policyholder's residential property or vehicle.
A written contract of insurance.
The person or entity specifically identified as the named insured in an insurance policy. This person is also referred to as the named insured.
The amount of money an insurance company charges in return for providing coverage.
The person who drives the vehicle most often. Also referred to as the principal driver.
This is the vehicle's typical use. "Work" refers to a vehicle that is primarily used for commuting to and from work or school. "Pleasure" refers to a vehicle primarily used for personal errands or personal trips.
This type of insurance helps pay for damage to someone else’s property as the result of a covered accident for which you are responsible. It may help cover the expense of repairing or replacing a car, fence or other property damaged during the covered incident.
A physical wall with qualities of fire resistance and structural stability, that controls the spread of fire.
Safety equipment designed to prevent, protect or notify you in the event of an emergency, such as fire extinguishers, dead-bolt locks, fire alarms, smoke alarms and burglar alarms.
A renters insurance policy covers the tenant and some of their personal possessions.
The cost of replacing damaged or destroyed property.
Replacement Cost Plus or Replacement Cost Guarantee is an optional coverage that can provide additional protection above the amount the home is insured for. It is designed to protect against unforeseen increases in the cost of repairs.
The physical location of the property for which insurance protection is provided. This is also known as the
insured location.
This optional auto insurance coverage can help you if you need a tow, run out of gas or have a flat tire.
If you are convicted of certain traffic violations or driving under the influence of alcohol or drugs, the state may require you to file an SR-22/FR-44 to verify that you maintain auto liability coverage. Both forms are official documents showing proof of financial responsibility, but use different titles based on your state of residence. If an SR-22/FR-44 should expire or be canceled, an insurance company will issue an SR-26/FR-46 form, which certifies the cancellation of the policy.
A fuel-burning appliance used as secondary heating source. Includes wood, coal and pellet stoves, cook stoves, freestanding stoves, freestanding fireplaces and fireplaces with inserts. To be insured, all units must have a separate flue, instead of sharing the flue of the primary heat source.
A small, portable space heating unit is not a supplemental heating device.
A legal document or certificate showing ownership of a vehicle.
A personal umbrella insurance policy offers an extra layer of liability protection for your assets if there's a serious auto accident or accident on your property. Otherwise, you could be liable for more than your current auto or homeowners coverage limits.
This type of coverage may protect against drivers without insurance, and/or drivers with insufficient policy limits to reimburse you for damages they caused.
This coverage typically pays the difference between the amount recovered from the other driver and the amount of the damages, up to the limit of the policy. Depending on the state where you are seeking coverage, uninsured and underinsured motorist coverage may be sold individually or combined into one coverage.
Covers damage to your vehicle resulting from a covered accident that you are legally entitled to receive from a driver who is not insured or whose insurance limits are not enough to reimburse you for damages they caused. This type of coverage varies from state to state.
Your vehicle's unique 17-character VIN can be found on the dashboard and driver's side door jamb. This unique serial number is also included on your vehicle's registration form and insurance card.
Optional coverage for loss due to water backup through sewers or drains.
A separate deductible that applies only to covered wind/hurricane losses.
Provides coverage for losses as a result of windstorm or hail. However, this coverage may be subject to special terms, conditions and deductibles. The windstorm or hail peril may be excluded entirely.
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