Actual cash value (ACV)
The cost to replace damaged property with a comparable item, minus depreciation for age, condition, and ordinary use. ACV is usually lower than replacement cost.
Primary reference: Michigan DIFS Homeowners Insurance Guide50 / 50
Additional living expenses (ALE)
Coverage that may help with reasonable increases in living costs when a covered loss makes the insured residence unfit to live in. Limits, eligible expenses, and time periods apply.
Primary reference: Michigan DIFS Homeowners Insurance GuideAdjuster
A person who investigates a claim, reviews documentation, evaluates damage, and helps determine what the policy may pay.
Primary reference: NAIC Glossary of Insurance TermsAgent
A state-licensed insurance professional who may explain coverage, submit applications, service policies, and represent one or more insurers.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsBinder
Temporary evidence of insurance issued before the full policy is available. It is subject to stated terms, dates, and conditions.
Primary reference: NAIC Glossary of Insurance TermsBodily injury liability
Coverage that may pay covered damages and legal-defense costs when an insured person is legally responsible for injuring someone else. Michigan’s default selection is $250,000 per person/$500,000 per accident; choosing a lower available limit requires a signed selection form. With the carrier Sandoval represents, that lower-limit selection is renewed with a signature at each renewal.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsCancellation
Ending a policy before its scheduled expiration date. The insurer, policyholder, or another authorized party may cancel only according to applicable rules and notice requirements.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsClaim
A request asking an insurer to investigate a loss and provide benefits that may be available under the policy.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsCollision coverage
Optional physical-damage coverage for an insured vehicle when it collides with another vehicle or object, subject to the selected collision form and deductible.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsComprehensive coverage
Optional coverage for many types of vehicle damage not caused by collision, such as theft, fire, vandalism, falling objects, hail, or contact with an animal.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsCondominium insurance (HO-6)
A policy designed for condominium unit owners that may cover interior building items, personal property, loss of use, personal liability, and certain loss assessments.
Primary reference: Michigan DIFS Homeowners Insurance GuideCoverage limit
The most the policy may pay for a covered loss, person, occurrence, item, or policy period. Different parts of one policy can have different limits.
Primary reference: NAIC Glossary of Insurance TermsDeclarations page
The policy summary showing key information such as named insureds, covered property or vehicles, coverage limits, deductibles, dates, endorsements, and premium.
Primary reference: NAIC Glossary of Insurance TermsDeductible
The amount the policyholder is responsible for toward a covered loss before the insurer pays its share. Some policies use different deductibles for different losses.
Primary reference: Michigan DIFS Homeowners Insurance GuideDepreciation
A reduction in value based on factors such as age, wear, condition, and useful life. Depreciation is commonly used when calculating actual cash value.
Primary reference: Michigan DIFS Homeowners Insurance GuideDwelling coverage
The part of a homeowners policy that covers the main residence and attached structures against covered causes of loss, subject to the policy terms and limit.
Primary reference: Michigan DIFS Homeowners Insurance GuideEndorsement
A written change to an insurance policy that adds, removes, or modifies coverage or policy terms. It becomes part of the insurance contract.
Primary reference: NAIC Glossary of Insurance TermsExclusion
A policy provision describing a loss, property, person, activity, or circumstance the policy does not cover.
Primary reference: NAIC Glossary of Insurance TermsEscrow billing
A payment arrangement in which a mortgage servicer collects money with the mortgage payment and pays the homeowners insurance premium when due.
Primary reference: Michigan DIFS Homeowners Insurance GuideFlood insurance
Separate coverage for qualifying flood damage. Standard homeowners and renters policies generally exclude flooding caused by rising surface water.
Primary reference: Michigan DIFS Homeowners Insurance GuideHome inventory
A documented list of personal belongings, ideally supported by photos, video, receipts, model numbers, and estimated values, to help establish ownership after a loss.
Primary reference: Michigan DIFS Homeowners Insurance GuideHomeowners insurance
A package policy that may combine coverage for the dwelling, other structures, personal property, additional living expenses, personal liability, and medical payments to others.
Primary reference: Michigan DIFS Homeowners Insurance GuideInsurance score
A rating tool that may use selected credit characteristics to estimate insurance risk. It is not the same as a standard consumer credit score, and its use is governed by applicable law.
Primary reference: Michigan DIFS Homeowners Insurance GuideInsured
A person or organization protected under an insurance policy. The policy definitions determine who qualifies as an insured for each coverage.
Primary reference: NAIC Glossary of Insurance TermsInsurer (carrier)
The insurance company that issues the policy, assumes covered risk, collects premium, and pays covered claims according to the contract.
Primary reference: NAIC Glossary of Insurance TermsLapse in coverage
A period when required or intended insurance is not active, often because a policy expired or was cancelled without replacement coverage.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsLiability coverage
Coverage that may pay covered damages and defense costs when an insured is legally responsible for injury or property damage to someone else.
Primary reference: NAIC Glossary of Insurance TermsLoss
An event or damage that may lead to a claim. A loss is payable only when it falls within the policy’s coverage and conditions.
Primary reference: NAIC Glossary of Insurance TermsMarket value
The price a property might sell for, including the value of the land and location. It is different from the estimated cost to rebuild the structure.
Primary reference: Michigan DIFS Homeowners Insurance GuideMedical payments to others
Limited no-fault coverage in many property policies for eligible medical expenses when a guest is accidentally injured, regardless of legal liability, subject to exclusions.
Primary reference: Michigan DIFS Homeowners Insurance GuideNamed insured
The person or organization specifically listed on the declarations page as a primary insured and policyholder.
Primary reference: NAIC Glossary of Insurance TermsNonrenewal
A decision not to continue a policy after its expiration date. It differs from cancellation, which ends coverage before expiration.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsOrdinance or law coverage
Coverage that may help with increased rebuilding costs required by current building codes after a covered loss, up to the policy limit.
Primary reference: Michigan DIFS Homeowners Insurance GuideOther structures coverage
Coverage for qualifying structures separated from the dwelling, such as a detached garage, shed, or fence, subject to policy terms and limits.
Primary reference: Michigan DIFS Homeowners Insurance GuidePersonal Injury Protection (PIP)
Required Michigan no-fault coverage that includes medical benefits and certain nonmedical benefits after an auto accident. Michigan offers several PIP medical choices with different eligibility rules. State rules allow some selections to carry forward, but the carrier Sandoval represents requires a signed renewal selection when limited PIP medical coverage is chosen.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsPersonal property coverage
Coverage for belongings such as furniture, clothing, electronics, and household items when damaged or stolen by a covered cause of loss.
Primary reference: Michigan DIFS Homeowners Insurance GuidePolicy
The insurance contract describing the parties, coverages, limits, exclusions, conditions, duties, and policy period. The complete policy—not a summary—controls coverage.
Primary reference: NAIC Glossary of Insurance TermsPolicy period
The beginning and ending dates during which the policy is scheduled to provide coverage, assuming all requirements are met.
Primary reference: NAIC Glossary of Insurance TermsPremium
The amount charged for insurance coverage. It may be paid in full, through installments, or through another approved billing arrangement.
Primary reference: NAIC Glossary of Insurance TermsProperty Protection Insurance (PPI)
Mandatory Michigan no-fault coverage that generally pays for certain damage an insured vehicle causes to properly parked vehicles and to property such as buildings and fences in Michigan.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsQualified Health Coverage (QHC)
Health coverage meeting Michigan’s requirements for certain PIP medical selections. Options relying on QHC, Medicaid, or Medicare require updated proof every year and at renewal. Proof may include a current QHC letter, a current Medicaid card or state letter, or documentation of Medicare Parts A and B, as applicable.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsRenters insurance
A policy for tenants that may cover personal belongings, loss of use, personal liability, and medical payments to others. It generally does not insure the landlord’s building.
Primary reference: Michigan DIFS Homeowners Insurance GuideReplacement cost
The cost to repair or replace covered property with material of comparable kind and quality, without deducting depreciation, subject to policy requirements and limits.
Primary reference: Michigan DIFS Homeowners Insurance GuideResidual bodily injury and property damage liability (BI/PD)
Required Michigan auto liability coverage for certain situations in which an insured is legally responsible for injury or property damage, including qualifying out-of-state losses.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsScheduled personal property
Specific valuable property individually listed on an endorsement, often with agreed limits or broader protection than the standard personal-property coverage.
Primary reference: Michigan DIFS Homeowners Insurance GuideUmbrella insurance
Additional personal liability coverage that sits above required underlying home, auto, or other eligible policies. It has its own exclusions and eligibility requirements.
Primary reference: NAIC Glossary of Insurance TermsUnderinsured motorist coverage
Optional coverage that may protect insured people when an at-fault driver has liability insurance but not enough to cover qualifying bodily-injury damages.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsUnderwriting
The process an insurer uses to evaluate an applicant or risk, decide eligibility, select terms, and assign an appropriate rate under filed rules.
Primary reference: NAIC Glossary of Insurance TermsUninsured motorist coverage
Optional coverage that may protect insured people for qualifying bodily injuries caused by an at-fault driver who has no applicable liability insurance.
Primary reference: Michigan DIFS Auto Insurance Guide and Auto Insurance FAQsWater and sewer backup coverage
Optional property coverage for certain water damage caused by backup through a sewer, drain, or qualifying sump system. It is not the same as flood insurance.
Primary reference: Michigan DIFS Homeowners Insurance GuideNo matching terms found.