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Insurance Terms
Not sure what a term that you've seen on this site means? Insurance can be an overwhelming subject at times, so we've compiled a list of terms and definitions to help keep you informed.
However, you do need to be aware that these insurance terms and definitions are intended for information purposes only, and the way they are 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.
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Accident
An event that happens by chance and is not foreseen and
intended, usually causing damage or injury. In case of automobiles, this
is usually referred to as a 'collision'.
Accident Free Discount
Discounts of up to 10% on your auto insurance premiums may be
available for drivers that are accident free based on the most recent
five years of driving experience. Discount applicability, availability
and percentages may vary from state to state.
Accidental Death
Intended to pay the policy limit for persons named on the
policy who are killed in an automobile accident.
Accidental Death and Dismemberment
Optional coverage that supplements other first party benefits.
Applies to designated insureds in the event of death or dismemberment
resulting from injuries sustained while occupying the insured vehicle.
Actual Cash Value (ACV)
The value of the property lost or damaged at the time of the
loss.
Additional Insured
A person or party, other than the policyholder, who is added to
a policy so that they will also be covered by that policy.
Additional Interest – Employer
This coverage is included with your tenant, condo, or homeowner
policy. It provides a specified amount per day for additional expenses in
the event that you cannot live in your insured residence.
Additional Living Expense
This coverage is included with your tenant, condo, or homeowner
policy. It provides a specified amount per day for additional expenses in
the event that you cannot live in your insured residence.
After-Market
A vehicle accessory or alteration purchased from a company or
vendor other than the manufacturer.
Aggregate PIP
Extra coverage on top of regular PIP coverage, often up to
$200,000 of medical expenses and lost wages. This coverage may vary
according to state.
All Perils Deductible
Extra coverage on top of regular PIP coverage, often up to
$200,000 of medical expenses and lost wages. This coverage may vary
according to state.
Altered Vehicle
A vehicle that has been modified from the original
manufacturer’s specifications for the primary purpose of increasing its
performance capabilities.
Amendatory Endorsement
An endorsement issued by the insurance company which makes
changes to the basic policy contract.
Annuity
A long-term investment vehicle designed to help accumulate
funds and provide income for retirement.
Anti-Hot-Wiring Circuit
A device that helps prevent vandalism to or theft of a motor
vehicle or its contents.
Anti-Theft Device
A device that helps prevent vandalism to or theft of a motor
vehicle or its contents.
Anti-Theft Device Discount
This discount may be available in some states to policyholders
who can demonstrate that they have installed an anti-theft device in
their automobile. Category guidelines differ by state.
Anti-Theft Device Discount (Kentucky Discount Categories)
Anti-theft discounts in Kentucky are based on three categories.
Category I 1. An ignition or starter cutoff switch which is inserted into
the ignition wiring of a motor vehicle that has flush or tapered door
lock buttons. 2. A non-passive, externally-operated alarm which is
activated if any door, the trunk, or hood is opened. 3. An Internally
operated alarm which is activated if any door, the trunk, or hood is
opened. 4. A steering column armored collar, which clamps on the steering
column over the ignition lock. Category II 1. An internally-operated
alarm system which automatically cuts off the ignition or disconnects the
starter and is activated if any door, the trunk, or hood is opened. 2. A
non-passive fuel cutoff device which is activated when a switch is
tripped or when the device is engaged by a key. 3. A non-passive steering
wheel lock consisting of a steel collar and barrel into which the shackle
of a lock fits, which is permanently attached to the steering post and
the lock is operated by a tubular key. 4. An armored cable hood lock and
ignition cutoff switch where the cable extends through the firewall and
is secured to prevent retraction. 5. A window identification system in
which identification letter or number are etched into all windows of the
motor vehicles other than small vent window. Category III 1. A passive
alarm system that meets the following criteria: 1. The ignition shall be
cut off automatically, or starter shall be disabled automatically. 2. The
alarm shall be triggered by entry of doors, hood, or trunk. 3. The hood
shall not open unless unlocked from the inside of the vehicle by a key or
by an electronic keyless device. 4. The alarm shall sound for no more
than eight minutes and shall reset itself. 5. The alarm shall not emit a
pulsating, whooping, or yelping sound which could cause it to be mistaken
for the police, fire, or other emergency vehicle siren. 6. The alarm
shall not be installed in the engine compartment so as to be inaccessible
without opening the hood. 7. The system shall be engaged passively by
turning the ignition key to the off position. A tubular lock or
electronic keyless device shall be used to disarm the system. 2. The
passive cutoff device which is engaged by turning the ignition key to the
off position and which requires the trip be switched to start the motor
vehicle and which meets the following criteria: 1. The fuel line shall be
blocked when the power is off. 2. The switch to open the fuel line shall
be hidden from view but accessible to the driver from the driver’s seat
or a tubular key or electronic keyless device may be used. 3. A parking
service attendant override switch may be provided which is not accessible
from the passenger compartment unless a warning buzzer sounds while the
engine is running and the override switch is engaged. 4. Any
under-the-dash wiring installed with the device shall blend in color with
factory- installed wiring. 3. An armored ignition cutoff switch which is
designed to resist tampering and which meets the following criteria: 1.
An armored cable shall run from a separate key to the coil, starter,
solenoid,or the engine component. 2. The device shall prevent hot wiring
of the motor vehicle. 3. A separate lock shall be of tubular type and
installed inside the motor vehicle or an electronic keyless device may be
used. 4. A passive multi-component cutoff switch that is activated when
the key is turned to the off position and which meets the following
criteria: 1. The primary wire to the ignition coil shall be disconnected.
2. The device shall disconnect the starter. 3. One or more wires to the
electronic ignition system or to the points and condenser shall be
disconnected and grounded to the chassis. 4. The wiring shall blend with
factory-I installed wiring and the disconnecting grounding wires shall be
routed to random points in the electrical system. 5. The control module,
if separate from the electronic locking mechanism, shall be hidden in the
engine compartment or other place where it will not be easily detectable.
6. In order to start the car, a lock or electronic device shall be used
to deactivate the system. 5. A passive time delay ignition system that
requires the operator to wait a prescribed time before moving the
ignition key from the on position to the start position. 6. An armored
cable electrically operated hood lock and ignition cutoff switch which is
a supplemental hood lock operated from within the motor vehicle and which
also cuts off the ignition when engaged and meets the following criteria:
1. An armored cable hood lock shall have tubing that extends through the
firewall. The system shall be engaged by a pushbutton or other device
which facilitates use and no portion of the hood lock cable may be
accessible from underneath the motor vehicle. 2. An electrically-operated
hood lock shall remain locked even if the wiring operating the hood lock
is cut. The system shall be engaged by turning the ignition key to the
off position. The lock shall be shielded or armored so that it cannot be
operated manually. 7. Passive, delayed ignition cutoff system which
disables the ignition circuit at a preset engine speed and meets the
following criteria: 1. The ignition shall cut off automatically as soon
as the engine reaches a speed in the range of 1,500 to 2,000 RPM. 2. The
system shall be automatically armed when the ignition key is turned to
the off position. 3. A pushbutton or other type of disarm switch shall be
well hidden and the wiring shall blend with factory installed wiring if
placed under the dash. 4. An alarm or horn shall be actuated at the same
time the ignition is disabled. 5. If a parking service attendant switch
is provided, a buzzer shall sound all the time the engine is running. 8.
A passive ignition lock protective system that consists of a protective
cap that fits over the ignition to prevent extraction of the ignition
lock cylinder. 9. A high security ignition replacement lock that conforms
to federal standards and cannot be removed using a conventional slider
hammer or lock puller equipment.
Antique Auto
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.
Appraisal
An estimate of the property value or of the extent of damage by
an authorized person. Appraisals are performed to determine the value of
the property at the time of the loss.
Arbitration
An estimate of the property value or of the extent of damage by
an authorized person. Appraisals are performed to determine the value of
the property at the time of the loss.
Arson
Intentional and malicious burning of property; a federal crime.
Assignment
The transfer of one person's interest in an insurance contract
to another person; usually requires prior written consent of the insurer.
Audio/Visual/Data
Any electronic equipment that receives or transmits audio,
visual or data signals and is not designed solely for the reproduction of
sound and any accessories used with such equipment.
Auto Death and Dismemberment Coverage
Optional coverage that supplements other first party benefits.
Applies to designated insureds in the event of death or dismemberment
resulting from injuries sustained while occupying the insured vehicle.
Auto Death Indemnity Coverage
Pays a lump sum in the event that the named insured is killed
in an automobile accident. The specific terms and availability of this
coverage should be discussed with an agent.
Auto Loss History
A third party consumer report that provides a history of a
person's automobile losses.
Automatic Shutoff and Reset
A system by which an alarm device sounds for not more than four
minutes, shuts off, and immediately rearms itself.
Backup Battery
An auxiliary power source that trips an alarm device if the
main power source is disconnected or if wires to the alarm device are cut
or disconnected.
Bankruptcy
The official filing for protection against creditors due to the
inability to pay all of one’s debts as they come due.
Binder
A written or oral acknowledgment that insurance is in force and
evidence that an applicant has accepted the insurer's offer to purchase
insurance coverage.
Biological Deterioration or Damage
This term describes damages to your property caused by living
organisms such as molds, algae, lichens, bacteria, fungi, and wet and dry
rot.
Boatowners (Pleasure)
Coverage for owners and operators of pleasure boats that may
insure the craft and permanent and portable boating equipment, and
provide liability coverage for boaters.
Bodily Injury (BI)
Physical injury, sickness, or disease sustained by a person,
including resulting death.
Bodily Injury Liability Coverage
Coverage that may pay medical costs of others and your legal
defense costs due to an accident involving your insured vehicle.
Bond
A sum of money that is paid as bail.
Building / Additions / Alterations
(Tenants and Condo only) Provides coverage, in accordance with
the conditions set forth in the policy and the amount shown on the
declaration, for the additions, alterations, fixtures, improvements or
installations that you make to the residence premises.
Business Auto
Includes Liability coverage for your business vehicle(s) in the
form of Bodily Injury and Property Damage to other’s vehicles, premises,
or personal property resulting from an at-fault accident. Includes
Medical Payments to others as a result of injury, but does not include
you or your employees. Business Auto can be expanded to include
Comprehensive Coverage that may cover physical damage losses to your
insured vehicle other than those caused by collision or upset. It
can also include Collision Coverage, which applies to the direct and
accidental loss of the vehicle resulting from vehicle upset or impact
with another vehicle. Both Comprehensive and Collision coverages are
optional and available at an additional premium.
Business or General Liability
Coverage that protects you and your business from financial
loss resulting from claims of injury or damage caused to others by you or
your employees, resulting from your business operations including your
premises, your products, and your operations or services. The injury
or damage may be unintentional or through negligence. Liability
consists of three parts: Bodily Injury and Property
Damage, Personal and Advertising Injury,and Medical
Payments or Expenses. It may be a standalone coverage product or
part of a policy package that includes Business Property coverages.
Business Property
Coverage that insures your business property, including
business personal property and owned buildings. Other business asset
coverage may include Business Interruption, Loss of Earnings, Loss of Use
of Premises, and Loss of Records. It may be a standalone coverage
product or part of a policy package that includes Business Liability
coverages.
Business Property on Premises
Any property, except computers including their hardware and
software, that is used in conjunction with your trade, profession, or
occupation, whether full or part-time. Coverage may only be extended when
such property is located at your residence.
California Farm Bureau (CFBF)
California's largest farm organization, which represents more
than 95,000 member families, including farmers, ranchers and other
Californians in legislative matters, public information and education,
advancing the public interest in agriculture and many other areas. Its
service-to-member programs include several insurance offerings and
discount services.
Cameras
Cameras and accessories, have limited coverage under property
policies. For maximum protection, cameras and accessories should be
insured under a scheduled personal property endorsement or personal
inland marine policy.
Cancellation
Ending or terminating an insurance contract before the
specified end-date noted in the policy.
Carpool Discount
This discount may be available to policyholders who can
demonstrate they are part of a car pool. To qualify, the vehicle must be
driven to work less than 50% of the time, or less than 2.5 days a week,
or use mass transit.
Carrier
An insurance company or 'insurer.'
Catastrophe
An event that causes extremely large losses or a large number
of losses in the same area.
CB / Cell Phone Coverage
This optional coverage provides additional coverage if there is
a loss or damage to a citizens band radio or similar two-way radio or
cellular phone.
Certificate of Insurance
This certifies to the certificate holder that the policy
indicated is in force as of the dates shown on the certificate.
Citizens Band Radios and Similar Equipment
Coverage that is available on private passenger automobiles or
vehicles rated as such for direct and accidental loss or damage to such
equipment.
City Limits
These are the corporation boundaries as established by a state
municipality.
Claim
An amount requested by a policyholder or third party from an
insurance company for losses covered by an insurance policy.
Claim Number
A group of numbers and/or letters that distinguishes your claim
from others.
Claimant
A person requesting an amount for covered losses from the
insurer. The insured or a third party may be the claimant.
Classics
A classic automobile is a private passenger automobile that is
10 years old or older and is a rarity or of historic interest and which
has been restored, maintained, or preserved by classic automobile
hobbyists.
Client Payment Plan (CPP)
A special payment plan which allows a person to pay all
insurance premiums with one monthly check. The guidelines for this plan
vary by state.
Coastal Water
Refers to a nearby body of water including, but not limited to,
an ocean, gulf, bay, harbor, inlet, sound, bayou, and/or any such body of
water that surrounds a barrier island on which the property exists.
Coinsurance
Insurance held jointly by two or more insurers. This may vary
according to state.
Collision
The upset of a covered auto or impact with another vehicle or
object.
Collision Coverage
Automobile insurance coverage for direct and accidental loss to
or caused by the covered auto, resulting from upset of the auto or its
impact with another vehicle or object. Collision Coverage is optional and
available for additional premium.
Collision Option
If chosen, this endorsement will cover the costs of Original
Equipment Manufacturer (OEM) parts that would be required as a result of
a Comprehensive or Collision coverage claim. If new OEM parts are out of
production or no longer available, the company will pay for the most
comparable part available. In such circumstances, the company will
reimburse the policyholder the cost difference between OEM parts and non
OEM parts. This endorsement may be added to private passenger automobiles
that are less than 10 years old, and that have not been customized in any
manner. If this endorsement is desired and both Comprehensive and
Collision coverages are present on a vehicle, then this endorsement
should be applied to both coverages.
Combined Loss Benefit
Rather than selecting individual limits for Funeral, Medical,
Loss of Income and Accidental Death, you may select a Combined Loss
Benefit. The details of this option should be discussed with an agent.
COMP Option
This option may provide coverage for any sound reproducing or
sound receiving and transmitting equipment which is permanently installed
in the opening of the dash or console of a covered vehicle normally used
by the motor vehicle manufacturer for the installation of a radio. This
coverage also applies to tapes, discs and other accessories used with
sound reproduction equipment permanently installed in a covered vehicle.
This coverage is subject to limits and exclusions that may vary by
state.
Complete Local Burglary Alarm System
Refers to an electrical security device that provides
protection for all windows, doors, and other openings whereby access to
the dwelling is possible. The system would include protective circuits
and devices connected to an enclosed, tamper-protected, and loud alarm
device attached to an outside wall of a building.
Comprehensive Coverage
Comprehensive refers to broad coverages or an extensive amount
of insurance coverage under one insurance contract. In auto insurance, it
may cover physical damage losses to your insured vehicle other than those
caused by collision or upset.
Computers
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.
Concurrent Insurance
Insurance under two or more contracts, covering the same
exposure and for the same policy period.
Conditions
The section of an insurance policy which explains duties and
responsibilities of the insured and the insurer.
Condo Comprehensive Endorsement
This option increases the covered causes of loss within your
policy. The actual effect of this option varies depending on your
location and should be discussed with a licensed insurance professional.
Condominium
A real estate ownership in which there is individual ownership
of a single unit in a multiple unit building and an interest in common
property jointly owned by all unit owners. In most cases, an association
operates the complete and common property.
Condominium Insurance
A typical condominium insurance policy covers owner and some of
his/her personal possessions, along with specific features of the
condominium.
Confirmation Number
Your confirmation number is generated as record that Nationwide
received your payment information in order to process the transaction.
Please keep your confirmation number for your records. Should you need to
contact us regarding this transaction, please have your confirmation
number readily available.
Construction Material
Refers to the predominant material used in the construction of
the dwelling. Frame (includes wood or metal
framing), Veneer (Framed walls with Masonry finishing or
coverage), Masonry (Brick, concrete block, or stone),
Fire Resistant (incombustible material used to construct
walls, partitions, floors, roof and ceiling assemblies).
Construction Type
Refers to the building method used to construct your residence.
Continuous Insurance
Policyholders who are described as continuously insured have
been covered by one or more insurance companies without any lapse in
coverage.
Continuous Liability (Auto)
Continuous Liability is described as a policyholder that has
been covered by one or more insurance companies without any lapse in
coverage.
Contract of Insurance
A legal and binding contract in which the insurance company
agrees to cover the insured's losses, provide other benefits, or render
services to or on behalf of the insured.
Coverage Exclusions
Items or conditions that are not covered by the general
insurance contract.
Credit Bureau Report
A report provided to business firms applying for credit
information on prospective customers.
Credit Card
This method of payment withdraws an amount indicated by you
from your credit card. Currently Electronic Bill Presentment and Payment
(EBPP) accepts the following card types to pay your insurance premium:
Discover, Visa and Mastercard.
Credit Card, Forgery, and Counterfeit Money Coverage
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. It also covers loss to an insured
caused by forgery or alteration of a check or negotiable instrument, or
loss to an insured through good faith acceptance of counterfeit United
States or Canadian currency. This coverage is subject to certain limits
and exclusions which should be discussed with a licensed agent.
Customization
Any add-ons or accessories (not related to engine performance)
that were added after the vehicle was originally manufactured.
Date Prepared (Date Prep)
The date your billing statement was prepared.
Death Benefit
Intended to pay the policy limit for persons named on the
policy who are killed in an automobile accident.
Declarations Page
A summary page of an insurance policy that identifies the
policyholder, the property covered, the coverages, and the premium
amounts; usually serves as the cover page of a policy document.
Deductible
An amount which the insured agrees to pay as his/her part of a
loss. The insurance company pays on an excess basis over the deductible
amount under certain coverages.
Delaware Farm Bureau (DFB)
Delaware's largest farm organization, which represents more
than 4,000 member families, including farmers, ranchers and other
Delaware residents in legislative matters, public information and
education, and advancing the public interest in agriculture and many
other areas.
Affiliated with Nationwide since 2004, its service-to-member include
several insurance offerings and discount services. Delaware residents may
save up to 7% on Nationwide auto and farm insurance by joining DFB.
Depreciation
A decrease in the value of an item or property due to wear,
age, or other cause.
Diminution of Value
The difference in value, if any, between your vehicle, properly
repaired, and a vehicle identical to yours in mileage and condition that
has never been in an accident at all.
Disability
An incapacity which results from bodily injury or disease and
prevents the insured from performing his or her regular occupation.
Discount
A reduction in premium based upon meeting certain criteria. For
example, a driver who has completed a Driver Improvement Course may be
eligible for a discount.
Door Sensor
A mechanical switch that activates the alarm device.
Driver Education Course
A course usually taken by unlicensed drivers in order to obtain
a driver's license.
Driver Improvement Course
A defensive driver training course typically taken by drivers
age 55 or older, beginning drivers, or drivers with troubled driving
records.
Driver License Number
The number provided to you by a state when the state issues you
a license to legally drive a vehicle.
Due Date
The date your payment needs to be received by the insurance
company in order to renew insurance coverage. This is not a 'post marked
by' date.
Dwelling
A place of residence such as a house or condominium.
Dwelling Fire
Indicates a type of property protection for a non-primary
residence or non owner-occupied dwelling for insurance purposes. Rules
for qualifying residences vary by state.
Earthquake and Volcanic Eruption
Losses to your insured property, which are caused by Earthquake
or Volcanic Eruption, are specifically excluded from your standard
homeowner, tenant, and condominium policies. This type of coverage can be
included for an additional premium.
Effective Date
The date the policy starts and insurance protection begins. May
also be called the "inception date." This date can be found on
your Declaration (DEC) Page or Insurance Identification Card.
Electronic Equipment
Any electronic equipment that receives or transmits audio,
visual or data signals and is not designed solely for the reproduction of
sound. This coverage is for devices not permanently attached to the
vehicle or for devices permanently attached to the vehicle, this option
provides limits above the limit specified in the policy for such
equipment.
Electronic Funds Transfer (EFT)
This method of payment withdraws a preset amount from a bank
account or credit card each month (with the policyholder's permission).
Endorsement
A written amendment attached to an insurance policy to change,
restrict or broaden coverage.
Engaged Couples
Couples who are not yet married can endorse a policy to provide
coverage for property such as wedding gifts from a specified period of
time before the wedding up to 90 days after.
Excess Comprehensive and Collision
Available in Washington only, this coverage can be added to a
policy carrying both Comprehensive and Collision for which the covered
vehicle is less than one year old. It covers any financed amount,
including financing charges, that the policyholder owes in the excess of
the actual cash value of the auto at the time of a covered loss.
Excess Family Medical Coverage
May provide additional first party medical coverage. The
availability and specifics of this optional coverage should be discussed
with an agent.
Exclusion
A provision in an insurance policy that excludes or deletes
certain risks from the coverages, thus limiting the scope of coverage. An
exclusion lists certain causes and conditions which are not covered.
Expiration Date
The date when your current insurance policy expires. This date
can be found on the Declarations (DEC) Page, as well as on insurance
identification cards.
Extended Replacement Cost
This option extends replacement cost loss settlement to
personal property and to outdoor antennas, carpeting, domestic
appliances, cloth awnings, and outdoor equipment, subject to limitations
on certain kinds of personal property; includes inflation protection
coverage.
Family Compensation
This coverage is similar to Medical Payments coverage. The
primary difference is that Family Compensation coverage may provide an
additional payment in the event that any passengers in your vehicle are
killed as a result of an accident.
Family Units
That part of a structure which is designed as a complete living
quarters and does not share access with other units within the same
structure.
Farm Bureau
Usually refers to a private, dues-paying state organization
comprised of a federation of smaller, county Farm Bureau organizations.
Members participate in a variety of legislative matters and public
information and education programs, and help advance the public interest
in agriculture and many other areas. Service-to-member programs include
several insurance offerings and discount services. The American Farm
Bureau Federation represents 5.5 million members across all 50 state Farm
Bureau organizations. Nationwide provides services to over 350,000 Farm
Bureau member families in California, Delaware, Maryland, Ohio,
Pennsylvania and West Virginia.
Farm Liability
A Liability Coverage – Farm endorsement may be required when farming is incidental to the occupancy of the premises and farming is not the insured’s occupation.
Felony
A severe crime punishable by a more stringent sentence than
that given for a misdemeanor.
Fifty Plus Discount
Discounts of up to 5% on your auto insurance premiums may be
available when the principal operator of the vehicle being insured is 50
years of age or older. Discount applicability, availability and
percentages may vary from state to state.
Fire Dept Service Charge
(Not applicable in Arizona) Pays an amount up to the limit
stated on your policy for charges assessed by the fire department in the
event that they are called to save or protect your insured property from
a covered peril. No deductible applies to this coverage.
Fire Wall
A wall with qualities of fire resistance and structural
stability, which subdivides a building to control the spread of fire.
Floater Policy
A policy that covers movable property such as jewelry, sports
equipment, etc.
Fraud
Dishonesty used to deceive or cheat. In insurance, fraud may be
related to misrepresentation or concealment, and may be grounds for
voiding an insurance policy.
Full and Limited Tort
In Pennsylvania, policy holders electing the Limited Tort
Option shall receive a small discount on the otherwise applicable
premiums for Bodily Injury, Property Damage, First Party Benefits,
Uninsured Motorists, Underinsured Motorists, Comprehensive, Collision,
Towing and Labor, Loss of Use, Citizens Band Radio, and Excess Medical
Benefits. The Limited Tort Option affects your Tort rights following an
accident, and should be discussed with an agent if you are unfamiliar
with it.
Full Payment
This is a method of payment in which the entire premium is paid
at one time. Under this plan, your premium is considered paid-in-full,
and the policyholder does not normally receive any further notices during
the term.
Funeral Benefit
Intended to provide for funeral expenses, up to the policy
limit, for persons named on the policy who are killed in an automobile
accident.
Funeral Expense
Payment for an insured's funeral or funeral-related expenses,
up to the maximum stated for this coverage, as a result of a covered
automobile accident.
Garaging Location
The address and ZIP code where an insured vehicle is
principally parked or garaged. Usually this is the location of the
policyholder's primary residence.
Gated Community
A 'Gated Community' is a housing community that is completely
surrounded by a minimum six-foot fence with all entrances secured by
either a 24-hour manned security guard station, or a resident card or key
lock control.
Glass Sensor
An electronic device that activates the alarm device if it
detects the sound of breaking glass or metal in contact with glass.
Good Student Discount
This is a discount insurers sometimes offer to a driver who is
a student and has a B or better grade point average. This discount
may also be available in some states for home-schooled students who meet
certain qualifications.
Guns
Guns, including accessories, are subject to a special limit
that is the total limit for each occurrence. This special limit does not
increase the personal property limit of liability. This special limit
applies only to theft losses.
Guns all Risk
This coverage option provides all risk coverage, except perils
specifically excluded in the policy, on guns and their accessories.
Hazard
A condition that creates or increases the chance that a loss
will occur. For example, a wood-burning stove may increase the chance of
fire losses.
Home and Car Discount
Discounts of up to 10% on your auto and property insurance
premiums may be available when you have both a Nationwide auto and home,
condominium, renters, or mobile home policy. Discount applicability,
availability and percentages may vary from state to state.
Home Care Liability
Refers to liability coverage for the insured and/or other
occupant who is the primary caregiver to a resident of the same property,
including, but not limited to, elderly or disabled persons. If the
occupant receiving the care is a dependent of the insured, then this
coverage does not apply. This type of coverage cannot be quoted online,
as each situation is unique.
Homeowner Discount
Discounts of up to 10% on your auto insurance premiums may be
available when you own and occupy a single, two-, three-, or four-family
dwelling, condominium, or mobile home but do not otherwise qualify for
the Nationwide Home and Car Discount. Discount applicability,
availability and percentages may vary from state to state.
Homeowners Insurance
Discounts of up to 10% on your auto insurance premiums may be
available when you own and occupy a single, two-, three-, or four-family
dwelling, condominium, or mobile home but do not otherwise qualify for
the Nationwide Home and Car Discount. Discount applicability,
availability and percentages may vary from state to state.
Hood Restraint
A device preventing full access to under-hood components,
including chain restraints that allow hood opening a maximum of four
inches, a mechanical or electrical device that physically locks the hood
down, or a mechanical or electrical device that prevents the factory
supplied hood mechanism from opening.
Hood Sensor
A mechanical switch that activates the alarm device.
Hurricane
In coastal states losses that are a result of a hurricane may
be subjected to special terms, conditions and deductibles. For complete
details on how this coverage may apply to you please contact an agent for
complete details.
Hurricane/Named Storm Deductible
Your policy, if it includes coverage for Wind and Hail and
depending on the state of residence, may require a separate deductible
for insuring damages caused by a hurricane or named storm. The
availability for optional hurricane deductibles depends on the Coverage A
limit for Homeowner policies or the Coverage C limit for Tenants and
Condominium Policies as well as the rating territory of the residence.
Identity Theft or Identity Fraud Expenses
The Identity Theft or Identity Fraud Expenses Coverage provides
limited coverage ($25,000) to pay for expenses an insured may incur as a
direct result of any single identity theft or fraud first discovered or
learned of during the policy period. In addition, professional Identity
recovery and resolution services are provided free of charge to the
covered victim of the identity theft or fraud.
IllinoisDiscount Categories
Anti-theft discounts in Illinois are based on three categories.
Incidental Business Occupancy
Indicates permissible business, such as an office, school,
studio, barber or beauty shop, on insured property that must be indicated
in the Declarations of a property policy.
Indemnification
After a loss occurs, restoring an insured to his/her financial
position before the loss.
Indemnity and Disability Coverages
These coverages cannot be purchased individually. The specific
terms and conditions of these coverages should be discussed with an
agent. Availability may vary by individual and state.
Inflation Protection
An optional property coverage endorsement offered by some
insurers that increases the policy's limits of insurance during the
policy term to keep pace with inflation.
Inland Marine
Insurance which covers property that is mobile in nature and
may be of high value, such as jewelry, sports equipment, fine arts,
antiques, coin/stamp collections, etc.
Installment Amount Due
Your payment amount. This is based on the Total Amount Due and
the number of payments you have elected.
Insurable Interest
Interest in property such that loss or destruction of the
property could cause a financial loss.
Insured
The person(s) or party(ies) who are insured or protected by an
insurance policy.
Insurer
The company who provides the insurance coverage and services on
a specific policy.
Jewelry all Risk
This coverage option provides all risk coverage, except perils
specifically excluded in the policy, on jewelry, watches and furs.
Jewelry, Watches, Furs
Jewelry, watches, furs and precious and semi-precious stones
are subject to a special limit that is the total limit for each
occurrence. These special limits do not increase the personal property
limit of liability. These special limits apply only to theft losses.
KentuckyDiscount Categories
Anti-theft discounts in Kentucky are based on three categories.
Lapse
A lapse in coverage is considered to be any period of time
during which you did not maintain the minimum insurance limits required
by your state.
Lease
A contract granting use/occupation of property during a
specified period in exchange for a specified rent.
Leaseholder
An individual who possesses or has use of property through a
lease.
Lessee
An individual to whom a lease is granted.
Liability Coverage (Auto)
Liability insurance pays the losses of other people which an
insured may cause unintentionally or through negligence.
Liability Coverage (Homeowner)
Liability insurance pays for damages to property owned by third
parties or injuries to third parties which an insured may cause
unintentionally or through negligence.
Liability coverage consists of two parts: personal liability coverage
and medical payments to others.
Personal liability coverage provides protection for the actions of an
individual, which cause bodily injury or property damage to another,
subject to exclusions.
Medical payments to others covers necessary medical and funeral expenses
incurred within 3 years after an accident causing bodily injury. This
coverage does not apply to you or members of your household.
Liability Coverage for Insureds and Family Members (Auto)
Coverage that changes your auto policy to provide bodily injury
liability coverage to any insured or any insured's family member who
lives in the insured's household up to the policy limits selected by the
policyholder instead of bodily injury liability coverage up to the state
minimum limits. With this coverage, your auto policy may provide bodily
injury auto liability coverage to any insured or any insured's family
member who lives in the insured's household in the same amount of
coverage provided for non-insureds and non-family members under your auto
policy. The term insured is defined in the auto policy. The terms family
or family member are defined by state law, but generally mean a blood,
marital or legal relationship. This coverage affects the amount of
liability coverage for bodily injury claims and should be discussed with
an agent.
Licensed
Having official or legal permission to operate a motor vehicle.
Lien
A creditor’s claim against owners’ assets to secure an unpaid
debt. Liens may also be decided by courts to satisfy judgment.
Lienholder
The party who has a claim upon real or personal property until
the satisfaction of some debt or duty.
Life Insurance
Provides a monetary payment to a designated beneficiary upon
the death of the insured.
Limits of Insurance
The maximum amount stated in the declarations page an insurance
company will pay for a covered loss.
Lock
A device primarily designed to prevent the illegal operation of
a switch, latch, or other mechanism.
Loss
Direct and accidental damage to the insured automobile or
property used as the basis for filing a claim.
Loss Assessment
This coverage provides reimbursement for extra fees assessed by
a condominium or homeowner association. It is subject to the limit on the
policy declaration page and a deductible.
Loss of Income
This coverage provides reimbursement for extra fees assessed by
a condominium or homeowner association. It is subject to the limit on the
policy declaration page and a deductible.
Loss of Use (Property)
This optional coverage, available for additional premium,
provides reimbursement up to the limit specified on the policy for
additional living expenses incurred as a result of being unable to live
in your home.
Loss of Use / Rental car coverage (Auto)
A coverage that reimburses the insured for costs incurred due
to damages from a covered loss.
Loss of Use Coverage (Rental)
This option may provide reimbursement for transportation
expenses should your car be undriveable due to a covered collision or
comprehensive loss.
Managed Care
Any arrangement for health care in which an organization such
as an HMO, another type of hospital-doctor network, or insurance company,
acts as an intermediate between the person seeking the care, and the
physician. This may vary according to state.
Manuscript
Is generally a composition or document that may be stored in a
variety of mediums such as but not limited to, paper, magnetic or
electronic disk or tape.
Market Value
Open market selling price. Price varies with economic
conditions at any given time.
Maryland Farm Bureau (MFB)
Maryland's largest farm organization, which represents more
than 19,000 member families, including farmers, ranchers and other
Maryland residents in legislative matters, public information and
education, advancing the public interest in agriculture and many other
areas.
Affiliated with Nationwide since 1928, its service-to-member programs
include several insurance offerings and discount services. MFB membership
can save Maryland residents up to 10% on auto, home and farm insurance
premiums.
Maryland Farm Bureau (www.mdfarmbureau.com)
Medical Benefit
May pay first party medical expenses up to the policy limit.
Medical Expenses
May provide payment for medical expenses resulting from an auto
accident. It is intended for the immediate medical treatment of
passengers in your vehicle who may have been injured in an accident
without establishing fault or liability before.
Medical Payments (Med Pay)
Provides payment for medical expenses resulting from an auto
accident. Med Pay is intended for the immediate medical treatment of
passengers in your vehicle who may have been injured in an accident
without establishing fault or liability beforehand.
Medical Payments Coverage (Auto)
Coverage which may provide for medical expenses incurred by you
and your passengers in the event of an accident, regardless of who is at
fault.
Medical Payments Coverage Homeowner
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.
Medical Payments to Others Coverage
Coverage which may provide necessary medical and funeral
expenses incurred within three years after an accident causing bodily
injury. This coverage would not apply to you or regular residents of your
household.
Misdemeanor
An offense less serious than a felony, and generally those
punishable by fine, penalty, forfeiture or imprisonment otherwise than in
penitentiary.
Misrepresentation
Misleading statements that are untrue or misleading.
Mobile/Manufactured Homeowners
Indicates a property policy for owners of mobile or
manufactured homes.
Money
Money is subject to a special limit that is the total limit for
each occurrence. This special limit does not increase the personal
property limit of liability. This special limit applies to all covered
losses of money, bank notes, bullion, gold other than goldware, silver
other than silverware, platinum, coins and medals.
Mortgage Payoff Using Life Insurance
The beneficiary's use of life insurance proceeds to pay off a
mortgage balance, either in a lump-sum payment or through periodic
payments.
Motion Sensor
A mechanical device that activates the alarm device if the
vehicle is jacked up or towed.
Motor Vehicle Report (MVR)
This report contains a record of a driver's driving history and
will include details of any accidents or violations.
Motorcycle Insurance
Is an insurance policy that covers motorcycles, motor scooters,
motorized bicycles, mopeds, and other similar motorized vehicles. The
coverage options available are identical to the options available in an
auto policy.
Multi Line Discount
Discounts of up to 10% on your auto insurance premium may be
available when the named insured is also insured with a Nationwide Home
product (Homeowner, Condominium, Tenants or Mobile Home) or owns a
Nationwide Life insurance product, Nationwide Health insurance policy or
a Nationwide Life Insurance annuity (any type and any amount). Discount
applicability, availability and percentages may vary from state to state.
Named Insured
The person specifically designated by name as the insured in an
insurance policy. This person is also referred to as the policyholder.
Named Non-Owner Coverage
Named Non-Owner coverage is written for any person not owning a
private passenger or commercial automobile, who otherwise meets 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. Coverage is excess over other
insurance available to the Policyholder.
Named Perils
Insurance that covers loss by those specific perils listed in
the policy.
New Household (Accident and Moving Violation free)
Discount
Discounts between 5% and 15% on your auto insurance premiums
may be available when all members of the household have been free of
accidents and moving violations for at least the past 5 years or since
being licensed, whichever duration is less. Discount applicability,
availability and percentages may vary from state to state.
Non-Passive Anti-Theft Device
An anti-theft device that requires manual activation.
Non-standard Carrier
An insurance provider with underwriting standards that accept
high risk drivers. High risk drivers are identified by their limited
experience, failure to carry insurance in the past, or poor driving
record.
Occasional Driver
A driver who is not the usual or most frequent driver of the
vehicle. Often this is a younger driver living with parents.
Occupancy
How the covered property is used, such as a residence.
Occurrence
In property insurance, the term means continual, gradual or
repeated exposure to an adverse condition which is not intended and not
expected to result in injury or damage.
OhioFarm Bureau Federation (OFBF)
A private, dues-paying organization with over 200,000 members
representing every county in Ohio. Members can serve on boards and
committees to work on legislation, regulations, and issues that affect
agriculture, rural areas and Ohio citizens in general.
In 1926, the Ohio Farm Bureau Federation (OFBF), with a $10,000 loan,
founded the Farm Bureau Mutual Automobile Insurance Company, which
changed its name to Nationwide in 1955.
Ordinance or Law
As building codes change over the years, your home may
eventually be out of compliance with the latest standards. In the event
that your home needs repairs following an insured loss, those repairs
would need to meet the current building standards. The difference in
value of your home currently, and what it would cost to rebuild adhering
to current standards, is not covered by your policy without this
endorsement.
OregonGuaranty Assessment
Most insurers doing business in Oregon participate in the
Oregon Insurance Guaranty Association. In the event an insurer fails, the
Association settles unpaid claims on behalf of consumers. Oregon law
requires that policies be surcharged directly to recover the costs of
handling those claims. This fee is collected with the first payment.
Other Insurance
Another insurance policy which covers the same interests and
perils as the policy being reviewed.
Other Structure
In Homeowners policies, a structure located on the insured
premises which is not directly attached to the dwelling structure.
Examples include a detached garage, fence, tool shed, cabana, etc.
Passive Anti-Theft Device
An anti-theft device or system which is activated automatically
when the driver turns the ignition key to the off position and the key is
removed.
Passive Occupant Restraint Discount
Discounts of up to 50% on the Medical Payments or Family
Compensation premiums of your auto policy may be available when your
vehicle is equipped with air bags and/or seat belt systems that
automatically deploy around the occupant when the vehicle doors are
closed. Discount applicability, availability and percentages may vary
from state to state.
Payment Mode
Refers to how often a premium payment is due. Available modes
may include: annual, semi-annual, quarterly, and monthly.
PennsylvaniaFarm Bureau (PFB)
Pennsylvania’s largest farm organization, which has more than
33,000 member families in 54 counties. PFB represents farmers, ranchers
and other Keystone State residents in legislative matters, public
information and education, advancing the public interest in agriculture
and many other areas.
Affiliated with Nationwide since 1992, its service-to-member programs
include several insurance offerings and discount services. Pennsylvania
residents can save up to 10% on auto and farm insurance by joining PFB, a
private, dues-paying organization. Pennsylvania Farm Bureau (www.pfb.com).
Personal Auto Policy
This term is used to distinguish the type of policy written.
For example, a policy can be written for you and your family (personal)
or can be written for a business (commercial).
Personal Effects
Applies to motor homes or trailers (including travel, camping,
and utility trailers). This optional coverage, if chosen, pays for
direct/accidental loss of, or damage to, certain property. This property
must be in or attached to the motor home or trailer, or used in
connection with it.
Personal Injury
Provides coverage for damages awarded to others on behalf of
the insured for injuries such as false arrest, libel, or invasion of
privacy.
Personal Injury Protection Coverage
Also called PIP, this coverage pays for medical bills and/or
funeral expenses if a covered driver or accompanying passengers are
injured or killed while in an insured vehicle, regardless of the fault of
an accident.
In some states PIP may cover lost wages and other related expenses. This
is known as PIP Option.For an additional premium, extended limits to this
coverage may be purchased, which is known as (Additional PIP). This
coverage is subject to exclusions and may vary by state and individual.
Personal Liability
Liability insurance provides protection for the personal
actions of an individual, which cause bodily injury or property damage to
another, subject to exclusions.
Personal Property
Refers to personal belongings of the insured, in contrast to
real estate.
Physical Damage
Refers to visual damage to the insured property.
Policy
A written contract or certificate of insurance.
Policy Anniversary
An anniversary of the policy date shown on the policy data
page.
Policy Data Page
A page attached to a policy naming the owner, the insured, the
date of issue, face amount, and other information to personalize a
policy.
Policy Date
The date the provisions of the insurance policy take effect. It
is shown on the policy data page. Policy years and policy months are
measured from the policy date.
Policy Period
The period of time during which an insurance contract or policy
is in effect. Also referred to as Policy term and Term of Policy.
Policy Term
The period of time during which an insurance policy is in
effect. Also referred to as Policy Period and Term of Policy.
Policy Type
Describes the specific coverage provided by the policy based on
the type of item being insured.
Policy Year
Begins on an anniversary of the insurance policy date, and ends
on the day prior to the next anniversary of the policy date.
Policyholder
The first person named as the insured in the insurance policy.
Premises
The physical location of the property for which insurance
protection is provided under an insurance policy.
Premium
The amount of money an insurance company charges in return for
providing coverage.
Primary Driver
The person who drives the vehicle most often. Also referred to
as the Principal Driver.
Primary Insurance
The coverage which applies first to the loss if more than one
policy covers the same property.
Primary Insured
A person named in the base policy who is covered by the
insurance.
Primary Residence
The place you will live for the majority of the term of your
policy.
Primary Use (Auto)
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,
trips, etc.
Principal Driver
The person who drives the vehicle most often. Also referred to
as the Primary Driver.
Proof of Loss
A formal document containing the signed and sworn statement of
the insured in regard to a loss for which a claim has been filed.
Property Damage
The destruction of, or physical injury to, property including
damage to the value of the property and loss of use of the property.
Property Damage Liability Coverage
Coverage that may pay damages caused by you to another person’s
property due to an accident involving your insured vehicle.
Protective Devices
Protective devices include but may not be limited to the
following:
- Fire and/or Burglary Alarm System that alerts the Fire and/or Police
Department or a private security firm.- Complete Local Burglary Alarm
System.
- Ultrasonic Local Burglary Alarm System.
- Local Fire or Smoke Alarm System.
- Fire Extinguishers.
- Dead Bolt locks on all exterior entry ways.
Real Property
Real estate property, including buildings and land, as opposed
to personal property.
Rebuilt Title
A rebuilt salvage title is issued when two or more vehicles
with different frames are joined or to replace any component part of a
vehicle that is declared salvaged.
Redundant Starting Means
A switch in addition to the primary ignition switch which makes
the ignition or starter system inoperable and which is not visible from
the driver’s position or which is disguised or protected by a separately
installed lock.
Registered Owner
A "registered owner" is a person registered by the
department of motor vehicles (DMV) as the owner of a vehicle.
Renewal
The continuation of coverage under an insurance policy, beyond
its original term.
Renters Insurance
A typical renters insurance (also known as tenant insurance)
policy covers the tenant and some of his/her personal possessions.
Replace a Vehicle
You may use this option to remove a vehicle currently listed on
your policy and replace it with a new vehicle. Your rates may be affected
by such a change to your policy.
Replacement Cost
The cost of replacing damaged or destroyed property without
deduction for depreciation in the value of the property.
Repossessions
The seizure of an automobile by a creditor due to a person’s
inability to pay the vehicle loan.
Resident Child
A minor child who is a resident in your household. If a driver
has custody of a minor child that lives in the household, the driver may
be eligible for a reduced rate.
Resident Children
Minor children who are resident in your household. If a driver
has custody of children that live in the household, the driver may be
eligible for a reduced rate.
Responding Fire Station
This is the name of the fire department that has primary
responsibility for responding to situations at your residence.
Restricted Use
Available coverage on Classic and Antique automobiles only.
Applicable if the automobile is maintained solely for the use in
exhibitions, club activities, parades, and other functions of public
interest and is not used primarily for the transportation of passengers
over any public street or highway.
Safe Driver
Discounts of up to 15% on your auto insurance premium may be
available if certain qualifications are met. Discount availability and
percentages vary from state to state.
Salvage
Property in a loss that is saved from further loss and then put
to use.
Salvage Title
When a certificate of title is surrendered and evidence that a
vehicle was declared a total loss by an owner or an insurance company,
the Secretary of State may issue a certificate of salvage.
Securities
Securities are subject to a special limit that is the total
limit for each occurrence. This special limit does not increase the
personal property limit of liability. This special limit applies to all
covered losses of securities, accounts, bills, deeds documents, evidences
of debt, letters of credit, notes other than bank notes, passports,
stamps and tickets.
Silverware
Silverware, goldware, and pewterware have limited coverage
under property policies. For maximum protection, such items should be
insured under a scheduled personal property endorsement or personal
inland marine policy.
Six Payments
This payment option requires an initial downpayment of at least
1/6 of the policy premium plus a transaction fee. Bills would be sent to
the policyholder's address for the remaining payments.
Social Security Number (SSN)
A number issued to individuals by the Social Security
Administration that may be used in order to confirm identity and/or
obtain certain reports.
Sound Equipment
Any equipment designed solely for the reproduction of sound,
including any accessories used with such equipment, which is installed in
locations not used by the auto manufacturer for installation of such
equipment or accessories.
Sound, Picture and Data Devices
Any electronic equipment that receives or transmits audio,
visual or data signals and is not designed solely for the reproduction of
sound and any accessories used with such equipment.
Special Equipment (Auto)
Auto parts or accessories that were added by anyone, other than
by the vehicle manufacturer, unless they were added prior to the
vehicle's original sale. Coverage for Special Equipment may be obtained
by declaring these items and paying a premium charge.
SR-22
A document that is used to provide proof of financial
responsibility. This is usually required by a court of law for a driver
who has been convicted of certain traffic violations.
Stacked
When more than one vehicle is insured under one or more
policies providing uninsured or underinsured motorist coverage, the
stated limit for uninsured or underinsured coverage will apply separately
to each vehicle so insured. The limits of coverages available under
stacked coverage for an insured is the sum of the limits for each motor
vehicle under which the injured person is insured. Applicable case law
and policy provisions may limit your ability to stack.
Standard Carrier
An insurance provider with underwriting standards that exclude
high risk drivers. High risk drivers are identified by their limited
experience, failure to carry insurance in the past, or poor driving
record.
Stereo Equipment Coverage
This coverage may be available to protect electronic equipment
that receives or transmits audio, visual, or data signals, and is
permanently installed in a covered vehicle. This coverage may also apply
to tapes, records, discs or other media used with such devices and stored
in the covered vehicle. Please contact your agent for details about this
coverage. (Applies in North Carolina only.)
Stolen Vehicle Recovery System
An independently operated system that automatically notifies a
monitoring center if a motor vehicle equipped with the system is started
by any means other than through use of an ignition key.
Supplemental Heating Device
Fuel burning appliances including but not limited to wood, coal
and pellet stoves, freestanding stoves, freestanding fireplaces and
fireplaces with fireplace inserts. This does not include conventional
masonry fireplaces, or factory-built fireplaces without fireplace
inserts.
Temporary Repairs
Making necessary repairs to the property in order to protect it
from additional damages.
Tenant Insurance
Designed exclusively for you and your personal belongings.
Term of Policy
The period of time during which an insurance policy is in
effect. Also referred to as Policy Period and Policy Term.
TexasDiscount Categories
Anti-theft discounts in Texas are based on five categories of
anti-theft devices.
Theft
The act of stealing; specifically, the felonious taking and
removing of personal property, with an intent to deprive the rightful
owner of the same.
Theft Coverage Extension
Available only on tenant policies, this coverage extends
protection to your personal property away from the residence premises
while unattended in or on any motor vehicle, trailer, or watercraft.
Theft Deductible
This special deductible option applies only in the event that
you file a claim as a result of burglary or theft. Theft deductibles must
be higher than your All Perils Deductible.
Title
A legal document or certificate showing ownership of a vehicle.
Tools
Tools have limited coverage for theft under property policies.
For maximum protection, you can increase the theft limit for tools.
Total Amount Due
This the amount that is currently due to pay the entire six
month premium.
Total Cost of Accident
This is the total cost that was paid out by you or any other
party (including insurance companies) for damage to your or any other
property. This includes the amount of your deductible.
Total Disability Coverage
May provide a weekly payment in the event of a bodily injury
that prevents the named insured from performing normal duties. The
specific terms and availability of this coverage should be discussed with
an agent.
Towing and Labor Coverage
Coverage for charges related to towing and labor if an insured
vehicle is disabled. This coverage is subject to limits, exclusions, may
vary by state and individual, and is subject to increased premium.
Townhouse
One row of houses connected by common side-walls.
Trailer
Utility trailers and boat trailers have limited coverage in our
policies. No coverage is extended to house or travel trailers.
Trailing Documents
A paper documentation sent to, or from, a policyholder to
verify certain pieces of information such as qualification for discount.
Transportation Expense
A coverage that reimburses the insured for temporary
transportation expenses incurred due to damages from a covered loss. The
actual amount of coverage provided, and the cost of this option may vary
by state.
Travelink Discount
A five percent discount on collision premiums is applicable for
any individually owned private passenger vehicle owned by employees
participating in an approved Travelink Traffic Mitigation Program. In
order to qualify for the program, the insured must provide a document
from their employer certifying that he/she is participating in a
Department of Transportation approved Travelink Traffic Mitigation
Program. To learn more about this program you can contact Ride Share
Delaware 1-888-743-3628 or visit their website.
Trunk Sensor
A mechanical switch that activates the alarm device if the
trunk is opened while the alarm system is armed.
Two Payments
This payment method requires a 50% downpayment (plus a possible
transaction fee). The remaining balance of the premium is billed to the
policyholder.
Ultrasonic Local Burglary Alarm System
Refers to an interior device that emits a high-pitched
(ultrasonic) sound wave pattern. Such an alarm is activated when the
sound waves are interrupted by an intruder.
Ultrasonic Sensor
An electronic device that activates the alarm device if an
ultrasonic field is disturbed inside the motor vehicle.
Uninsured and Underinsured Coverage
Depending on the state you are seeking coverage in, uninsured
and underinsured motorist coverage may be sold individually or combined
together as one coverage. As the names imply, this type of coverage may
protect against drivers without insurance, and/or drivers with
insufficient policy limits to fully 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.
Unsatisfied Judgments
A person’s failure to pay a certain legal debt or financial
dollar amount that was decided by a court of law for damages caused by
the person.
Unscheduled Coverage
Properties to be covered are listed but not described, as in
inland marine coverage.
Unstacked
A named insured may waive coverage providing stacking of
uninsured and underinsured coverages in which case the limits of coverage
under the policy for an insured shall be the stated limits for the motor
vehicle as to which the injured person is an insured.
Valuables
Insurance policies include limits on how much they will
reimburse the insured for the loss of an individual item or category (for
example: jewelry). These limits can be increased to meet your needs.
Vandalism
The willful or malicious destruction of public or private
property.
Vehicle Identification Number (VIN)
This is a unique number (usually 17 digits) that contains such
information as the vehicle's serial number, year, make, model and body
type.
Vehicle Use
Restricted - This usage applies to a vehicle that is maintained
solely for use in exhibitions, club activities, parades and other
functions of public interest and is not used primarily for the
transportation of passengers over any public street or highway.
Corporate - This usage applies to a vehicle that is
titled/registered to a corporation and is used by the policyholder in
his/her occupation, profession or business.
Individual Business - This usage applies to a vehicle
that is titled/registered to the policyholder and is used customarily in
the occupation, profession or business of the policyholder.
Farm - The vehicle is used for pleasure/business
incidental to the maintenance of the policyholder's farm. The
policyholder must live on a farm of five acres or more and be engaged in
farming only for this rating to apply.
Utility - This usage applies to a vehicle that is
primarily used for the delivery or transporting of equipment, merchandise
or supplies if such use is incidental to the policyholder's business of
installing, maintaining or repairing furnishings or equipment.
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, trips etc.
Vermin
Small animals such as mice and rats.
Vibration Sensor
A mechanical or electronic device that activates the alarm
device if any part of the vehicle is bumped, causing vibration.
Violation
Any time you are cited or receive a 'traffic ticket' from a law
enforcement officer, it is considered a violation.
Waiver of Collision Deductible
Available only for vehicles with collision coverage and
Uninsured/Underinsured Motorists - Bodily Injury, this coverage pays the
amount of your collision deductible when your vehicle is damaged by an
uninsured motorist who is legally liable. The specific terms and
availability of this coverage should be discussed with an agent.
Water Backup
This coverage protects the insured against loss caused by water
which backs up through sewers or drains and which is not caused by the
negligence of the insured.
Watercraft
Includes motorboats, sailboats, jet skis, wave runners and
other similar crafts designed solely for use on water.
West VirginiaFarm Bureau (WVFB)
West Virginia's largest farm organization, which has more than
15,000 member families. WVFB represents farmers, ranchers, and other
MountainState residents in legislative matters, public information and
education, advancing the public interest in agriculture and many other
areas.Affiliated with Nationwide since 2004, its service-to-member
programs include several insurance offerings and discount services. West
Virginia residents can save up to 7% on auto and farm insurance premiums
by joining WVFB, a private, dues-paying organization.West Virginia Farm
Bureau (www.wvfarm.org).
Wind/Hurricane Deductible
This deductible option is normally available in coastal states.
Selecting one of these options will result in a reduced rate, as you will
be assuming responsibility for the selected amount in the event that your
home is damaged by a hurricane or windstorm.
Window Identification System
A system under which the motor vehicle identification number is
permanently marked on at least two windows on the motor vehicle other
than the small vent windows.
Windstorm or Hail
Your policy covers losses as a result of windstorm (for
example: tornado or hurricane) or hail. However, this coverage may be
subject to special terms, conditions and deductibles in coastal states if
a loss is the result of a hurricane. In some coastal states the Windstorm
or Hail peril may be excluded entirely. In these locations, coverage may
be purchased through special arrangements for those states. Please
contact an agent for complete details.
Work Loss
Medical documentation showing the inability to work due to
injuries sustained in an auto accident. This may vary according to state.
Your local Nationwide agent
Nationwide agents offer you access to professional service via
e-mail, over the phone, or face-to-face. They can aid in the filing of
claims and are trained to help you customize your coverages to meet all
of your needs.
