Key Insurance Terms Every Policyholder Should Know

Key Insurance Terms Every Policyholder Should Know

Whether you are taking out a homeowners policy or you have an automobile insurance policy, it’s extremely important that you understand the extent of your coverage. In order to properly understand the insurance coverage that you can access, you must familiarize yourself with some of the main terms that could be covered under your policy. Here are some of the most important terms that you should understand when reviewing an insurance policy.


An endorsement is considered a change to the provisions under your insurance policy. An endorsement on your policy will modify materials in the insurance contract. This could be amendments to the standard policy which are issued by your insurance company based on changes that are required.

Bodily Injury

Most policies define bodily injury as sickness or disease, bodily harm, as well is the chance of loss of services or death. The insurance policy will cover an occurrence in which bodily injury occurs but this is typically only physical manifestations and not any type of emotional harm cost.

Household Resident

Any homeowners insurance policy defines the insured as residents that are named under the insured house identification. Florida courts will determine who qualifies as a household resident on a case-by-case basis. It’s often individuals that have a kinship with one another.


Indemnity is the act of paying someone else for liability to another party. Personal liability coverage in a homeowners policy agrees that the person carrying insurance will reimburse an uninsured individual for damages that they are liable for. This could mean property damage, third-party bodily injury and more.

Liability Limits

Insurance policies will also cover losses up to a certain amount in any case. Liability limits are the maximum amount an insurance provider will cover. You can often increase these limits by changing your insurance policy.

These are a few of the top terms that you should be familiar with as you are reviewing your insurance policy. Keep these terms in mind as you are assessing your coverage levels.

This post was written by Kelly-Ann Jenkins of Jenkins Law P.L. Kelly-Ann is an St Petersburg Personal Injury Attorney. She focuses on personal injury, car accidents, and bicyclist injury. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.

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