Key Term Definitions

Actual Cash Value

Provides coverage for the cost to replace or repair damaged property, less depreciation.

Agreed Value

Provides coverage for an amount agreed to by the insured and the insurance company. In the event of a covered total loss, the agreed amount is paid and the deductible is waived.

Backup of Sewer

Provides coverage for loss by water that backs up through your sewers or drains or that overflows from a sump pump.

Collision Coverage

Provides coverage for a covered automobile due to its colliding with another vehicle or object, including the overturn of an automobile.

Comprehensive Coverage

Provides coverage for loss or damage other than by collision or upset (i.e., fire, theft, windstorm, flood, vandalism).


Provides coverage for loss or damage by any earth movement (other than sinkhole collapse), such as earth sinking, rising or shifting, excluding mine subsidence.

Earthquake/Wind/Hail/Hurricane/Deductible Loss Assessment Coverage:

Provides coverage for your share of an assessment charged against you by your condominium association as a result of a deductible in the association Earthquake/Wind/Hail/Hurricane/Insurance policy.

Excess Liability

Provides liability limits in excess of an underlying liability policy/policies subject to limitations as outlined in the policy (sometimes referred to as an umbrella policy).

Excess Uninsured Motorist

Provides limits in excess of underlying uninsured motorist coverage.

Fair Rental Value/Additional Living Expense

Provides coverage for reimbursement for loss of rent less any expenses that do not continue while the premises is unfit to live in as a result of a covered loss.


Damage resulting directly from a flood. Includes overflow of inland or tidal waters, runoff of surface waters and other causes of flood damage as defined by the policy issued. Coverage is usually excluded for backup of sewers, drains and hydrostatic pressure.

Guaranteed Dwelling Replacement Cost Coverage

Provides coverage to repair or rebuild a covered building even if reconstruction costs are greater than the amount of coverage specified for that building.

Improvement and Betterments

Provides coverage for loss to specified alterations or additions that you have made to the premises covered.

Lease Gap Coverage

Provides coverage to offset the financial loss that can result when physical damage insurance on a leased vehicle fails to cover the remaining amount of a lease obligation following an accident (covers difference between the Actual Cash Value of the vehicle and the lease obligation).


Provides coverage for bodily injury and/or property damage for which you become legally liable as a result of a covered loss.

Loss Assessment Coverage

Provides coverage for your share of a loss charged to you by your condominium association for direct loss of or damage to property collectively owned by all members of the association.

Ordinance or Law Coverage

Provides coverage for loss due to the enforcement of existing building or zoning laws that results in additional costs to repair or rebuild an insured building after a covered loss occurs.

Personal Injury Coverage

Provides coverage for liable, slander and defamation of character.

Rental Reimbursement Coverage

Coverage to pay for rental charges incurred if you temporarily lose the use of your auto(s) from a covered loss (e.g., collision).

Replacement Cost Coverage

Provides coverage to replace property with property of like kind and quality without deduction for depreciation.

Special Personal Property Coverage

Provides broader coverage for your personal property (i.e., more types of losses are covered).

Towing and Labor

Provides coverage if your vehicle is disabled by a covered comprehensive or collision loss. There is no deductible for this coverage.

Underinsured Motorist Coverage

Provides coverage for bodily injury incurred by an insured when an accident is caused by a motorist who is not sufficiently insured, i.e., when the limits of liability carried by the other motorist are lower than the Uninsured Motorist limits carried by the insured.

Uninsured Motorist Coverage

Provides coverage for bodily injury, and in some states (not Kansas) property damage, caused by a motorist who is not insured. Uninsured Motorist Coverage allows the insured to collect from his or her own insurer.

*These definitions provide a general explanation of terms.  For specific definitions that apply to your situation, please refer to your insurance policy.