How should you use this insurance glossary?
- Use the term to find the controlling policy section, notice, filing, or public record.
- Compare the same field across written quotes or policy versions before comparing price.
- Do not turn a general definition into coverage, eligibility, liability, claim, or legal advice.
- Use the linked detailed owner when the decision needs more than a definition.
Which insurance record answers which question?
A common error is using the right word with the wrong record. A quote can describe a proposal but not prove issuance. A declarations page can list limits but not show every exclusion. A flood map can describe mapped geography but not the policy or lender's final determination.
| Question | Start with | Then verify | What the record does not prove alone |
|---|---|---|---|
| Who assumes the insured risk? | Quote or declarations | Legal insurer name and current state authorization | That the agency itself is the insurer |
| Is coverage active? | Binder or issued declarations | Authorized confirmation, effective date/time, payment, and conditions | That an estimate or submitted application created coverage |
| What does the policy cover? | Coverage form and declarations | Definitions, exclusions, limits, deductibles, conditions, and endorsements | That a coverage label applies to every cause or property |
| How is a loss valued? | Loss-settlement provision | ACV/RCV wording, depreciation, proof, timing, limit, and damaged item | That market value or a web calculator controls payment |
| Why did a renewal change? | Expiring and renewal packets | Premium, limits, deductibles, forms, endorsements, insurer, and notices | That “renewal” means the contract is unchanged |
| Does DMV require an SR-22? | Nevada DMV notice or record | Underlying policy, filing status, continuous dates, driver, and vehicle facts | That SR-22 is a standalone coverage type |
| Does a flood map establish coverage? | FEMA map for mapped context | Separate policy, lender determination, waiting period, limits, and effective date | That an address is covered or that water damage is flood |
How can you find a term quickly?
Showing all 59 terms.
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What do insurance roles and policy-document terms mean?
Use these definitions to locate the controlling field or form. A label is a starting point; the complete issued contract and applicable record answer the individual question.
Insurance agency
A licensed business that helps consumers seek or service coverage and may represent one or more insurers under appointments or contracts. The agency does not itself assume the policy's insured risk unless it is also the named insurer.
Verify agency identity and licensing →Insurer or carrier
The legal insurance company named on the declarations or policy that assumes covered risk, underwrites the application, issues the contract, collects premium, and decides claims under that contract.
Separate the agency from the issuing insurer →Insurance producer or agent
A person licensed to sell, solicit, or negotiate insurance within the authority of the license and applicable insurer relationships. Licensing does not by itself prove a price, carrier appointment, coverage result, or recommendation.
Verify the producer's current license →Admitted insurer
An insurer authorized by the state insurance regulator to transact specified insurance in that state. Authorization should be checked for the legal insurer name and current line of authority, not inferred from a brand or agency website.
Use the Nevada license search →Quote
A proposed price and coverage presentation based on stated facts and assumptions. A quote is not the issued policy and may change after underwriting, inspection, reports, document review, selection, payment, or correction of application facts.
Normalize written quote fields →Binder
Temporary evidence that coverage has been placed under stated terms for a stated period by someone with authority to bind. A binder can expire or be replaced by the issued policy and should be checked for insurer, insured, property, limits, effective time, conditions, and payment.
Track quote, binder, and issued-policy states →Insurance policy
The contract made up of declarations, coverage forms, definitions, conditions, exclusions, endorsements, schedules, and notices that apply to the insured risk. Read the complete issued version, not a web summary or form label alone.
Compare the full current policy →Declarations page
The policy summary identifying items such as the named insured, property or vehicle, policy period, insurer, limits, deductibles, premium, forms, and endorsements. It is an index to the contract, not the complete contract.
Review declarations with every form →Endorsement or rider
A form that adds, removes, limits, or otherwise changes policy terms. An endorsement must be read with the base form because it may replace only specific language while leaving other definitions, exclusions, and conditions intact.
Compare endorsement versions →Exclusion
Policy language identifying a cause, property, person, activity, circumstance, or loss the contract does not cover. Another form or endorsement may change an exclusion, so the entire issued policy and facts of loss matter.
Turn exclusions into written questions →Condition
A contractual duty, requirement, or rule that can affect coverage, payment, cancellation, cooperation, notice, inspection, or claim handling. Conditions must be read together with the coverage grant, definitions, exclusions, and endorsements.
Locate duties before and after loss →Coverage limit
The maximum amount or stated boundary applicable to a coverage, subject to the policy's terms. A limit is not a promise that every loss will be paid to that amount, and multiple limits or aggregate limits may apply.
Inventory every written limit →Sublimit
A lower limit that applies to a particular property type, cause of loss, expense, location, or category within a broader coverage. Jewelry, business property, water backup, debris, or temporary housing may have separate sublimits depending on the form.
Check category-specific limits →Deductible
The amount or percentage applied to a covered loss before the insurer's payable amount is calculated, subject to the policy. It may apply by coverage, occurrence, vehicle, cause, or event and is not always simply cash paid before any insurer action.
Translate every deductible into dollars →Premium
The price charged for the insurance contract for a stated period and payment plan. Taxes, fees, installment charges, discounts, audit adjustments, escrow collection, and later underwriting changes can affect what is billed or paid.
Separate annual premium from payment timing →Underwriting
The insurer's process for deciding whether and on what terms it will accept a risk. It can use application facts, inspections, reports, property or vehicle characteristics, prior loss information, eligibility rules, and filed rating or underwriting standards.
Understand the decision owner →Effective date and time
The date and, when stated, time when coverage begins under the issued evidence. Submitting an application, receiving an estimate, or selecting an option does not create coverage without authorized confirmation and any required payment or conditions.
Confirm issuance in writing →What do home, renters, and condo coverage terms mean?
Use these definitions to locate the controlling field or form. A label is a starting point; the complete issued contract and applicable record answer the individual question.
Actual cash value (ACV)
A property-loss valuation approach commonly described as replacement cost less depreciation, subject to the policy and the damaged property's condition. The form can define depreciation, valuation timing, and what property uses ACV differently.
Compare valuation language →Replacement cost value (RCV)
A valuation approach based on replacing or repairing damaged property with material of comparable kind and quality without a depreciation deduction, subject to limits, conditions, timing, and proof in the policy.
Check payment stages and conditions →Extended replacement cost
An endorsement or provision that may make an amount above the dwelling limit available for a covered rebuilding loss, subject to a stated percentage or amount and policy conditions. It is not unlimited rebuilding coverage.
Record the exact extension and conditions →Coverage A — dwelling
The home-policy coverage commonly associated with the residence structure and attached components, as defined by the form. The limit, valuation basis, covered causes, exclusions, and address facts control; it is not the home's market value.
Separate rebuild cost from market value →Coverage B — other structures
The home-policy category commonly used for qualifying structures separated from the dwelling, such as a detached garage or fence, subject to definitions, exclusions, business-use limits, and the stated limit.
Inventory detached structures and uses →Coverage C — personal property
Coverage commonly associated with belongings owned or used by an insured, subject to where property is located, covered causes, valuation, exclusions, sublimits, and scheduled-property endorsements.
Build an inventory and check sublimits →Coverage D — loss of use
Coverage that may address increased living costs, fair rental value, or prohibited use after a covered loss, depending on the form. Eligibility, dollar or time limits, required records, and the covered trigger control.
Compare temporary-housing terms →Personal liability
Coverage that may respond when an insured is legally liable for covered bodily injury or property damage, subject to occurrence, insured, location, activity, defense, exclusion, and limit provisions.
Read the occurrence and exclusion terms →Medical payments to others
A limited home-policy coverage that may pay qualifying medical expenses for certain injured people without requiring a liability judgment, subject to who is eligible, location, timing, exclusions, and the stated limit.
Do not confuse it with liability coverage →Named-perils coverage
A coverage approach that responds only to causes of loss listed in the applicable form, subject to definitions, exclusions, and conditions. The list can differ by property category and endorsement.
Locate the covered-cause list →Open-perils coverage
A coverage approach in which qualifying direct physical loss is covered unless excluded or limited, subject to the exact form. It does not mean every loss, property type, cost, or cause is covered.
Read exclusions and limitations →HO-3
A homeowners form label often associated with open-perils dwelling coverage and named-perils personal-property coverage. Carrier versions, Nevada amendments, endorsements, limits, and exclusions vary, so the form number is not a coverage conclusion.
Compare the actual issued form →HO-4 — renters
A renters form label commonly addressing personal property, loss of use, personal liability, and medical payments rather than the building itself. The lease, landlord policy, and tenant policy answer different questions.
Separate tenant and building responsibilities →HO-6 — condominium unit owner
A condo-unit form label commonly addressing personal property, unit improvements or building items assigned to the unit owner, loss of use, liability, medical payments, and possible loss assessment. The HOA master policy and governing documents must be reviewed with it.
Align the unit and master policies →Master policy
The association's or building owner's insurance contract for specified property and liability interests. It does not automatically cover every unit improvement, owner belonging, assessment, deductible allocation, rental exposure, or loss.
Obtain the current master declarations and forms →Loss assessment
Coverage that may respond to certain assessments charged by an association after a covered event, subject to the unit-owner policy, association cause of loss, master-policy deductible or limit, exclusions, timing, and sublimit.
Ask what assessment causes qualify →Ordinance or law coverage
Coverage that may address specified added costs caused by enforcement of building codes or laws during repair or rebuilding after a covered loss. Demolition, undamaged portions, increased construction cost, limits, and exclusions can be separate.
Record each code-upgrade component →What do auto and financial-responsibility terms mean?
Use these definitions to locate the controlling field or form. A label is a starting point; the complete issued contract and applicable record answer the individual question.
Bodily injury liability
Auto liability coverage for covered legal responsibility for injury or death to other people, subject to per-person and per-accident limits, insured status, exclusions, defense terms, and applicable law.
Read both liability limits →Property damage liability
Auto liability coverage for covered legal responsibility for damage to another person's property, subject to the stated limit, insured status, exclusions, defense terms, and applicable law.
Keep it separate from collision →Collision coverage
Physical-damage coverage that may pay for covered damage to the insured vehicle from collision with another vehicle or object, or overturn, subject to the vehicle, deductible, exclusions, valuation, and lienholder terms.
Compare covered causes and deductible →Comprehensive coverage
Physical-damage coverage, often called other-than-collision, that may address listed non-collision causes such as theft, vandalism, glass, animal contact, or weather, subject to the form, deductible, exclusions, and vehicle.
Do not treat the label as all-risk coverage →Uninsured motorist coverage
Coverage that may respond to qualifying bodily injury, and in some contracts other loss, caused by a driver without applicable liability insurance. State options, policy wording, limits, offsets, notice, and proof requirements control.
Check the exact Nevada selection and form →Underinsured motorist coverage
Coverage that may respond when an at-fault driver's applicable liability limit is insufficient for a qualifying covered loss. It is not simply the unpaid balance of every accident and remains subject to the policy and law.
Compare limits, offsets, and triggers →Medical payments coverage
Optional auto coverage that may pay qualifying medical or funeral expenses for covered people after an accident without first deciding fault, subject to the form, limit, timing, exclusions, and coordination provisions.
Separate it from liability and health coverage →Excluded driver
A person specifically excluded under policy language or an endorsement. The effect can vary by policy and situation; do not assume another vehicle's permission or household status restores coverage.
Disclose household drivers and read the endorsement →Insurance lapse
A period when required or intended coverage is not continuously in force. In Nevada, even a short registration-insurance lapse can create DMV consequences; the exact dates and DMV record control.
Verify status directly with Nevada DMV →SR-22
A certificate of financial responsibility filed by an insurer with Nevada DMV when required. It is not a separate coverage type or proof that every vehicle or loss is covered; the underlying policy, filing requirement, and continuous-maintenance dates matter.
Use the DMV record and filing notice →Non-owner auto policy
A policy designed for certain drivers who do not own a vehicle, commonly addressing liability while driving qualifying non-owned vehicles. It may not cover household, regular-use, business-use, rental, physical-damage, or owner obligations the way a consumer assumes.
Match ownership and regular-use facts →Evidence of insurance
A card, electronic record, binder, policy document, or insurer transmission used to show insurance status for a stated purpose. Evidence is not broader than the underlying contract and may not satisfy every DMV, lender, lessor, or transaction requirement.
Verify the receiving party's required record →What do claim, cancellation, nonrenewal, and renewal terms mean?
Use these definitions to locate the controlling field or form. A label is a starting point; the complete issued contract and applicable record answer the individual question.
Claim
A request for the insurer to investigate and apply the policy to a reported event or loss. Filing a claim does not guarantee coverage or payment; facts, cause, timing, damage, policy terms, duties, limits, deductibles, and evidence are evaluated.
Preserve notice and loss evidence →Adjuster
A person who investigates, evaluates, negotiates, or settles claims for an insurer or, where separately retained and licensed, for a policyholder. The adjuster's role and employer should be identified rather than assumed.
Confirm role and communications →Proof of loss
A signed or otherwise required statement and supporting information about a claimed loss, submitted according to policy or insurer requirements. Deadlines, requested details, estimates, inventories, receipts, and supplements depend on the claim and form.
Track required records and deadlines →Depreciation
A reduction used in some property valuations to reflect factors such as age, condition, or useful life. The policy, item, valuation method, state rules, and claim facts affect whether and how depreciation is applied.
Ask for itemized valuation support →Recoverable depreciation
A portion of withheld depreciation that may become payable after qualifying repair or replacement and required proof, subject to policy terms, time limits, cost incurred, and claim handling. It is not automatically recoverable in every policy or loss.
Record proof and timing conditions →Cancellation
Termination of a policy before its scheduled expiration, initiated under the contract and applicable law. Reason, notice, effective date, refund, replacement coverage, lender or DMV impact, and appeal or complaint rights are separate questions.
Read the actual notice immediately →Nonrenewal
A decision not to offer a new policy term when the current term expires. It is different from midterm cancellation and should be evaluated using the written notice, reason, deadline, market options, and applicable Nevada rules.
Separate expiration from cancellation →Renewal
An offer or issuance for a new policy term that may change premium, limits, deductibles, forms, endorsements, insurer, payment plan, or eligibility. A renewal label does not mean the contract is unchanged.
Compare expiring and renewal versions →What do flood, earthquake, wildfire, and umbrella terms mean?
Use these definitions to locate the controlling field or form. A label is a starting point; the complete issued contract and applicable record answer the individual question.
Flood
For insurance purposes, flood is a defined cause of loss, not a synonym for every form of water damage. Standard home policies generally exclude flood; a separate flood policy may apply, and the issued definition, map, waiting period, limits, and exclusions matter.
Separate map, lender, and policy questions →Earthquake coverage
Coverage offered by endorsement, separate policy, or another product structure for specified earthquake loss. Deductible percentages, coverage bases, event definitions, exclusions, and ensuing-loss treatment must be translated from the written form.
Compare product form and deductible base →Wildfire exclusion
Policy or endorsement language excluding or limiting specified wildfire loss. Nevada law permits certain wildfire exclusions and wildfire-only products, but that authority does not prove a particular insurer uses one or that a given property is eligible.
Read the issued exclusion and policy options →Umbrella or excess liability
A separate liability policy intended to provide additional limits above specified underlying policies, subject to required underlying limits, covered exposures, exclusions, retained limits, and follow-form or independent wording.
Align underlying policies and exclusions →Scheduled personal property
An endorsement or schedule listing particular valuables with item-specific descriptions, limits, valuation, deductibles, and covered causes. Scheduling does not eliminate every exclusion, appraisal requirement, or claim condition.
How scheduling a valuable works →What insurance terms are commonly confused?
Quote, binder, and policy
A quote proposes. A binder can provide temporary evidence under stated authority and conditions. The issued policy supplies the full contract. Record all three states rather than calling them interchangeable.
Agency, producer, and insurer
The agency and producer help obtain or service coverage within their authority. The named insurer underwrites and assumes covered risk. Verify each legal identity separately.
Limit and deductible
A limit bounds a coverage; a deductible is applied under the loss provisions. Neither number proves the payable amount without the covered cause, valuation, exclusions, conditions, and facts.
Cancellation and nonrenewal
Cancellation ends a term before scheduled expiration. Nonrenewal declines a new term at expiration. The reason, notice, effective date, and replacement-coverage deadline require the actual notice.
ACV, RCV, and market value
ACV and RCV are policy valuation concepts. Market value is a sale-market concept. Determine the damaged item, settlement provision, depreciation, proof, timing, and insurance limit.
Flood, water backup, and plumbing loss
They are different causes and policy questions. A standard home-policy flood exclusion, separate flood form, water-backup endorsement, and sudden plumbing provision can apply differently.
Where should a term lead next?
The glossary owns concise definitions and record boundaries. It does not absorb the detailed jobs of the homeowners owner, auto owner, renters owner, condo owner, policy-version checkup, quote-comparison owner, claim guide, SR-22 owner, flood owner, or earthquake owner. Follow the linked owner when the visitor's question becomes a decision, calculation, document packet, or current legal requirement.
What questions do Nevada insurance shoppers ask about these definitions?
Which definition controls when this glossary and my policy use different wording?
The definition in the complete issued policy, including applicable endorsements and Nevada amendments, controls the contract. Read the declarations, definitions, coverage grant, conditions, exclusions, limits, schedules, and endorsements together. This glossary helps identify questions; it does not replace or interpret the contract.
Is a quote the same as bound or issued coverage?
No. A quote is a proposal based on stated facts and assumptions. Coverage begins only after an authorized insurer or representative confirms placement and the effective date, subject to required payment and conditions. A binder may provide temporary evidence; the issued policy supplies the complete contract.
Does open-perils coverage mean every kind of damage is covered?
No. Open-perils is a coverage approach, not unlimited protection. The insured property, direct-loss requirement, exclusions, limitations, conditions, deductibles, limits, endorsements, and facts of loss still apply. Different property categories in the same policy can use different covered-cause approaches.
Is an SR-22 a special type of auto coverage?
No. Nevada DMV describes an SR-22 as a certificate of financial responsibility filed by the insurance company when required. The underlying auto or non-owner policy provides its stated coverage. The filing requirement, covered drivers and vehicles, and continuous-maintenance dates must each be verified.
Are replacement cost and market value the same?
No. Market value concerns a property's sale value, while insurance replacement cost concerns the cost basis described by the policy for repair or rebuilding. Land, location, labor, materials, code costs, valuation conditions, limits, and depreciation treatment can make the figures materially different.
Can Valley West Insurance tell me whether a loss is covered?
A licensed producer can explain policy language and help route a notice or question, but the issuing insurer applies the complete contract to the investigated facts and makes the claim decision. This page does not determine coverage, liability, value, payment, eligibility, or a legal result.
Which official sources support this glossary?
The sources below establish general and Nevada-specific terminology and responsibility boundaries. They do not replace the individual policy, insurer communication, DMV record, lender request, association document, or facts of loss.
- NAIC glossary of insurance terms. General industry terminology; policy definitions still control.
- NAIC homeowners insurance consumer guide. Deductibles, replacement cost, actual cash value, inventory, and quote-comparison context.
- Nevada Consumer's Guide to Home Insurance — 2026. Current Nevada home-policy structure, valuation, deductible, coverage, exclusion, and shopping guidance.
- Nevada DOI: how to read a home policy. Why definitions, coverage, conditions, limitations, exclusions, and amendments must be read together.
- Nevada DOI: homeowners insurance. Home-policy components, term contracts, risk inputs, lender context, and separate-hazard boundaries.
- Nevada DOI: policy forms. Informational form examples and the warning that actual forms and availability vary.
- Nevada DOI: filing a home claim. Notice, documentation, mitigation, receipts, and insurer/agent contact.
- Nevada DOI publications. Current state consumer guides for home, auto, flood, earthquake, title, and related topics.
- Nevada DOI: automobile insurance. Nevada auto-policy and consumer information.
- Nevada DMV: insurance and SR-22. Nevada evidence-of-insurance, lapse, reinstatement, and SR-22 terminology.
- Nevada insurance-license search. Agency, producer, and insurer license verification.
- FEMA National Flood Insurance Program. Separate flood-policy and consumer-preparation context.
- FEMA Flood Map Service Center. Official public flood-map lookup; a map is not a coverage determination.
- CFPB: homeowners insurance and a mortgage. The separate borrower, insurer, and lender roles in homeowners-insurance evidence.
Should you apply a term to a real quote or policy?
Bring the declarations, quote, endorsement, notice, or form number. A licensed producer can help locate the relevant language and request written clarification. Coverage is subject to insurer underwriting, eligibility, issuance, payment, and the complete policy terms; not all applicants or risks qualify.
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