Renters Insurance Glossary Terms

Click on a term below to see its definition:

  • Exclusions

    Provisions in an insurance policy that clarify coverage and explain the circumstances in which benefits will not be paid.

  • Hazard

    A condition that increases the likelihood of a loss.

  • Lapsed

    When a policy is terminated due to a non-payment of premiums.

  • Premium

    The cost of purchasing the policy. This can be paid monthly, quarterly, semi-annually (every six months) or annually (once per year).

    Depending on the policy type purchased, premiums can be: level (stay the same for the life of the policy); attained-age (rate changes after each birthday); community-rated (the same for everyone in a particular area); age-banded (the same for everyone within the same age group or range), or various other methods.

  • Riders

    Additional options that can be placed on an insurance policy. Typically, these have the potential of enhancing coverage in certain circumstances. However, in most circumstances, they may not be worth the extra cost.

  • Waiting period

    The time between the filing of an insurance claim and the payments made on the claim.

    Example: Typically, the longer the waiting period on an insurance claim, the cheaper the policy will be for the holder.