Glossary of Insurance Terms

Easy-To-Understand Auto & Home Definitions

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Accident Forgiveness – If you haven’t had any accidents within the past three or five years (depending on which state you live in). The Hartford will treat your next accident like it never happened and will waive any surcharge that would’ve been added to your premium. This benefit is available as part of The Hartford’s Advantage Plus package.
Account Credit – Credit that is offered to customers who have both their auto and home insured with The Hartford. Credit applies to both policies.
Act of God – A supernatural, unpreventable catastrophe such as a tornado, earthquake, or flood.
Actual Cash Value (ACV) – ACV is one way to measure the value of property that is being repaired or replaced after a loss; calculated by subtracting depreciation from replacement cost.
Additional Limits in the Event of a Total Loss – Customers who have accommodated for 100% home replacement cost (money required to rebuild a home, at present, with similar materials, construction, etc.) are eligible for additional coverage limits.
Advantage Package for Auto – The Hartford’s basic auto coverage package which includes various features such as New Car Replacement§§ and RecoverCare.§
Advantage Plus Package for Auto – The Hartford’s exclusive auto coverage package which provides all the features of the Advantage Package along with additional benefits such as First Accident Forgiveness, Disappearing Deductible and One Deductible.
Advantage Package for Home – The Hartford’s package providing extra policy coverage, specifically: $300,000 Personal Liability, $4,000 additional Medical payments, $25,000 Identity Fraud Expense, increased Personal Property coverage and more.4
Advantage Plus Package for Home – The Hartford’s package providing extra policy coverage, specifically: $300,000 Personal Liability, $4,000 additional Medical payments, $50,000 Identity Fraud expense coverage, $10,000 Loss Assessment coverage, Equipment Breakdown coverage and a Disappearing Property Deductible.6
Alternative Fuel Discount – Available discount to Hartford customers who have an electric or hybrid vehicle on their auto policy.
Anti-theft Credit – Available credit for Hartford customers who have a vehicle that is equipped with an active or passive alarm on their auto policy.
Bodily Injury Liability (BI) – Protects against financial loss and helps pay legal costs in the event you cause an auto accident which injures another person. The coverage amount is subject to the limits you carry on your policy.
Bodily Injury Split Limits – Split limits offer two maximum coverage limits for one accident. The first number is the maximum coverage limit for one injured person. The second number is the maximum coverage limit for one accident, including all those injured. For example, if your coverage limit for bodily injury is 50/100, this means its split as you will be covered up to $50,000 total per person in an accident and up to $100,000 total per accident, if more than one person is injured.
Burglar/Fire Alarm – A security, burglar and/ or fire prevention device installed in a home, that may sound at the residence, a fire or police department or a central station.
Collision Coverage – Pays for damages to your car that results from a collision with another vehicle or object. This coverage is subject to a deductible.
Comprehensive or Other than Collision Coverage – Pays for damages to your car that result from something other than a collision such as fire, theft, or vandalism. This coverage may be subject to a deductible.
Comprehensive Driving Evaluation (CDE) – A voluntary assessment of someone’s ability to drive. Those who are aging, have medical conditions, or haven’t driven for a block of time may choose to be evaluated periodically.
Customizing Equipment Coverage Endorsement – Provides Comprehensive and Collision coverage for customized equipment (special carpeting, suspension lift kits, rims, captain’s chairs, murals and more) on an eligible pickup or van.
DRP Collision Deductible Reduction Provision – A Hartford benefit available as a part of the Advantage Plus Package that reduces your collision deductible by $100 if you choose a Direct Repair Provider, a shop recommended by The Hartford, to repair your vehicle after a covered loss.
Defensive Driver Credit (DDC) – A Hartford credit applied to an auto policy if the primary driver has successfully and voluntarily completed an approved Defensive Driving Training Course within the last 3 to 5 years, depending on the state.
Disappearing Deductible – This Hartford benefit reduces your collision deductible on your auto policy each year, all the way to $0, as long as all drivers on the policy maintain a clean driving record.‡6
Disappearing Property Deductible – This benefit reduces your home deductible by $50, all the way to $0, for each year you are loss free.
Driver Training Credit – A Hartford credit applied to an auto policy when a driver, under the age of 22, successfully completes a voluntary driver education course.
Dwelling Coverage – Protects your home and attached structures by rebuilding or repairing it after a covered loss. The coverage amount is subject to the limits you carry on your policy.
Earthquake Loss Assessment Coverage – Protection for earthquake damage assessed by a homeowners association (HOA).
Emergency Expense Coverage – The Hartford will pay up to a $1000 for your reasonable expenses while you are traveling more than 100 miles from home for temporary housing, travel expense to get home and the cost to return the auto to your home (if not a total loss) if your insured vehicle has been involved in a covered loss and cannot be safely driven. Other than collision (comprehensive) and collision coverage are required. This coverage is available as part of The Hartford Advantage Plus package.
Equipment Advantage Protection – This additional coverage protects you if run into issues with home systems such as your furnace, air conditioner, home security system, or appliances need to repair or replace them due to electrical or mechanical failure.7
Full Glass Coverage – Provides coverage for the repair or replacement of damaged “safety” glass on your vehicle without a deductible. Coverage varies by state.
Gap Insurance – Primarily used for leased or financed vehicles, this type of insurance pays for the difference between the vehicle’s value and what is owed to the lienholder if it were to get stolen or totaled.
Good Student Discount – A Hartford credit that is offered on an auto policy for full time student drivers who are in the top 20% of their class or maintain a B average.*
Green rebuilding – Optional coverage that pay for the additional cost to repair or replace your home with green alternative materials, such as Energy Star appliances, after a covered loss.11
Homeownership Credit – Credit applied to an auto policy if the insured owns their own home or condominium.
Identity Fraud Expense – This additional coverage reimburses you for expenses that you may incur as a direct result of identity fraud during your homeowners policy period.10
Indemnification – Agreement between The Hartford and the insured to restore the insured who has had the loss to their same financial standing prior to the loss.
Insurance ID Card – Card issued by your auto insurance carrier that is used as proof of insurance and provides basic information about your policy such as your policy number, effective dates, the year, make and model of your vehicle.
Insurance to Value (ITV) – ITV is the relationship between the amount of coverage you purchase to the estimated replacement value of your home.
Lifetime Continuation Agreement for Auto – Once you have an auto insurance policy with The Hartford, your coverage will be renewed for as long as you’re able to drive. Just meet a few simple requirements such as maintaining a valid driver’s license and paying your premiums. Available exclusively to customers within The Hartford’s AARP Insurance Program.
Lifetime Continuation Agreement for Home – Once you have a home insurance policy with The Hartford, your coverage will be renewed for as long as you meet a few simple requirements such as paying your premiums. Available exclusively to customers within The Hartford’s AARP Insurance Program.
Limited Access–When a residence is:
  • Located within a gated/fenced community/complex or a secure/locked building
  • Protected 24/7 by a security guard(s) who patrol and monitor all entrances and exits
Limited Fungi/Rot/Bacteria Coverage – Protection on home policies for any type of fungus, mold, mildew, spores, scents, or byproducts produced by fungi.
Limited Mexico Coverage – Driving a car in Mexico requires separate liability coverage from a licensed Mexican insurance company. Once established, The Hartford can provide additional coverage for Comprehensive and Collision.
Limited Tort – Typically a less expensive insurance option; limits your ability to sue and recover costs resulting from an accident.
Loss Assessment – Protection for damage assessed by a homeowners association (HOA).
Mature Retirees – if the named insured is 50 or older and is fully retired or working part time while living in a primary residence.
Medical Payments Coverage for Auto – Coverage for you, family members, and passengers for injuries sustained in an auto accident. This coverage also covers you and family members if hit by a vehicle as a pedestrian.
Medical Payments Coverage for Home – This coverage provides payment for medical expenses that occur within 3 years from the date of an accident that happened on your property, causing an injury to somebody who isn’t a resident of your household.2
Motor Home Lay-Up Credit – Available credit for Hartford customers who have a motorhome on their auto policy that isn’t being used or driven for one to five months.
Multi-car Discount – Available credit for Hartford customers who insure two or more vehicles under one auto policy.
Named Peril – Named-peril policies cover home policyholders’ losses incurred from specific risks (fire, windstorm, flood, theft) that are listed in the policy.
Ordinance or Law Coverage – This optional endorsement provides additional coverage for increased construction costs resulting from ordinances, laws, present zoning, or required building codes. As an example, if your stairs do not meet code and you need an architect to redesign your living space.
Other Structures – Provides coverage to repair or rebuild structures that aren’t attached to your home but are on the residence premises, such as an unattached garage or shed. This coverage is an automatic 10% of your dwelling amount and has no additional premium.
Passive Restraint – Vehicle safety features designed to protect passengers and activate automatically such as seat belts or airbags.
Peril – With regard to insurance, this is the cause of a loss. Examples could include fire, hail, wind, etc.
Personal Injury Protection – Often referred to as no-fault, this provides coverage for medical expenses and any other coverages prescribed by your state’s no-fault law due to an auto accident. Coverage applies regardless of who is found to be at fault.
Paid in Full Discount – Credit for Hartford customers who pay their auto policy in full, rather than payments.
Property Damage Liability – Generally pays for damages to another person’s property, such as a car, when you are responsible for an auto accident.
Protection Class – A number between 1 and 10 designating the distance from your home to the nearest fire department. Highest protection = 1; lowest protection = 10. The grading is determined by the Insurance Services Office, a national statistical rating organization and is one of the factors that is used to determine a home insurance rate.
Protective Devices – Security and/or fire safety monitoring systems installed and operating in a home. Systems include: automatic sprinkler, central station burglar alarm or fire alarm, dead bolt lock, department burglar or fire alarm, limited access, local (at residence) burglar or fire alarm, smoke detector, etc.
RecoverCare Essential Services Coverage – This exclusive Hartford coverage provides reimbursement up to $2,500 for household services such as cleaning, cooking, snow removal, lawn maintenance, and transportation if you are unable perform these services due to injury after a covered loss. Medical Payments coverage is required.§
Refrigerated Property Coverage – Optional coverage on a home policy that will reimburse you for refrigerated foods that have been ruined from losses such as mechanical failure or interruption of electrical services to the refrigerator, with only a $100 deductible.
Renewal Credit – An incentive credit given to long-standing Hartford policy holders.
Rental Reimbursement/Transportation Expense – If your car becomes inoperable due to a covered loss and you need to rent a substitute, transportation expense coverage pays the cost of the rental car up to the policy limit for this coverage. Transportation expense coverage, also called rental reimbursement coverage, is available only if you carry comprehensive and collision coverage.
Renter’s Insurance – Protection for personal property (due to fire, theft, windstorm, hail, explosion, vandalism, riots, etc.), loss-of-use (additional extra living expenses for a temporary move incurred by necessary repairs to a covered dwelling), and personal liability (damage caused to 3rd parties by the policyholder or dependents) while living in an apartment or renting out a home.
Replacement Cost Coverage for New Cars – If you total your new car within the first 15 months or 15,000 miles after you buy it (whichever comes first), The Hartford’s Replacement Cost for New Cars coverage will pay to replace it with a new vehicle of the same make, model and equipment – with no deduction for depreciation.§§
Replacement Cost For Homes – Cost to actually replace the structure or item with a new structure or item. There is no depreciation for wear or aging.3
Residence Held in Trust – When a home is deeded to a trust, this endorsement can be added to extend the home insurance policy to insure the personal property and liability interests of the grantor (individual who creates a trust – named insured or relative) or beneficiaries (individual who will receive the benefits or proceeds of the trust, can be a family member or individual not related to insured) depending on their residency in the home or relationship to the Trustee (named insured or a relative).
Roof Value Scheduled (RVS) Settlement – Optional home coverage for a roof exposed to weather elements like wind or hail. The coverage will gradually reduce over time based on the roof’s age and material.
Scheduled Personal Property Coverage – The base policy limits coverage for certain items such as jewelry, furs, camera, musical instruments, silverware, golf equipment, fine arts, stamps and coins. This endorsement provides extra coverage that is All Risk and has no deductible. Complete descriptions of items to be coverage and an appraisal may be required.9
Stacked vs. Non-Stacked – Stacked Uninsured and Underinsured Motorist coverage combines each vehicle’s uninsured and underinsured coverage limits, providing extra coverage in a loss. Unstacked (non-stacked) insurance treats each vehicle’s uninsured and underinsured coverage limit separately in a loss.
Subrogation – Allows The Hartford to settle a claim on your behalf. The claim may involve recovering payments, including deductibles.
Towing and Labor Coverage – Provides coverage for towing costs and/or labor or services performed at the place of disablement (e.g. keys locked in the vehicle, jump start, tire change, running out of gas or fluids) up to the policy limit.
Umbrella Policy – Additional liability coverage that increases the limits of your home and auto policies, providing an additional layer of security.
Uninsured/Underinsured Motorist Coverage – Provides bodily injury coverage for insured, family members, and passengers in the insured’s vehicle when other party is at fault for an accident and does not have insurance or enough insurance to pay for the damages.
Uninsured Motorist Property Damage Coverage – Coverage for your vehicle when it is damaged by an uninsured driver, a hit-and-run driver, or an insured driver whose Liability limit is not enough to cover the damages to your vehicle.
Universal Design Replacement Plus – This coverage provides you with extra funds, so that at the time of a loss in a kitchen or bathroom, there would be extra coverage to provide for "ease of living" changes, or Universal Design Upgrades, like multi-level kitchen countertops, wider doorways, grab bars or extra task lighting.
Valuable Items Blanket Coverage – Optional endorsement on your home policy that expands the coverage on your valuable items, such as jewelry, china, and fur, to cover causes of loss not included in your standard property coverage. Limits may apply.8
Vehicle Identification Number (VIN) – A vehicle's unique 17-character serial number. Your VIN may be found on the dashboard, driver's side door jamb, vehicle's registration form and/or insurance card. FYI:
Vehicle Safety Technology Discount – A Hartford discount applied when an eligible vehicle is equipped with adaptive headlights or a forward collision warning system.
Wind Mitigation – A credit given to homeowners who use wind-resistant features (shutters, reinforced roof, impact resistant doors and windows) to minimize hail/hurricane/windstorm damage.
* The owner or operator is at least 16 years of age and a full-time student in: high school, or college or university, or vocational technical school. A certified statement from a school official is presented to the company on each anniversary date indicating that the student has met one of the following requirements during the immediately preceding school semester: is in the upper 20% of his/her class scholastically or maintains a “B” average or its equivalent. If the letter grading system cannot be averaged then no grade can be below “B,” or student must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent, or student is included in a “Dean’s List,” “Honor Roll” or comparable list indicating scholastic achievement.
2 Medical benefits are calculated on the basis of usual, customary and reasonable charges.
3 The Hartford will pay the full cost to rebuild your home, even if it costs up to 125% of your home insurance policy’s coverage
4 This package is ideal for customers who want extra protection, above their base policy, for certain coverages such as: Replacement Cost Contents Coverage, enhanced Personal Liability Coverage, and ID Fraud Expense Coverage.
5 Our most popular package, Home Advantage Plus includes all the features of Home Advantage, plus extra benefits such as the Disappearing Property Deductible†† and Equipment Protection Advantage.
6 Responsible homeowners deserve to be rewarded. If you have no homeowners claims in the past three years, The Hartford will lower your property insurance deductible by $50. Then, we’ll lower it another $50 after each year without a claim – until your property deductible reaches zero.
7 This coverage pays for the repair or replacement of appliances, electronics and other home systems after a mechanical or electrical breakdown. Equipment Protection Advantage also provides coverage if you want to make “green” upgrades. It pays up to 125 percent of your cost to replace any covered equipment with items that are similar, but more energy efficient or environmentally friendly.
8 An easy, convenient way to add a higher level of protection for valuable items such as jewelry, silverware, fine art, musical instruments, cameras, and more – without the added paperwork of scheduling or appraisals.
9 With this benefit, you can have protection against a potential total loss. If such a covered loss occurs, you can receive 100 percent of the insured value for your scheduled personal property.
10 This coverage will reimburse you for out-of-pocket expenses related to identity theft or fraud such as: (1) lost income due to time away from a job to work with credit agencies, or (2) legal expenses needed to remove criminal or civil judgments caused by fraud. ID fraud is a scary fact of life in today’s tech-driven world. But The Hartford’s ID Fraud Expense coverage can help to reduce the financial impact of these crimes. Our coverage will reimburse you for up to $25,000 in out-of-pocket expenses related to identity theft or fraud. This also includes protection against lost income, with a total limit of $7,500 and a limit of $300 per day. You can use lost income coverage as reimbursement for time away from a job to work with credit agencies, or for legal expenses needed to remove criminal or civil judgments caused by fraud.
11 If living “green” is important to you, The Hartford can help with our optional Green Rebuilding coverage. This option extends coverage limits by up to 10 percent when you make environmentally-friendly repairs or upgrade to more-efficient systems and appliances after a covered claim.
§ Availability of RecoverCare benefit and benefit levels vary by state. The Hartford RecoverCare Advantage® is a registered mark of The Hartford.
If you are age 50 or older, once you’re insured through this Program for at least 60 days, you cannot be refused renewal as long as applicable premiums are paid when due. Also, you and other customary drivers of your vehicles must retain valid licenses, remain physically and mentally capable of operating an automobile (not applicable in MA), have no convictions for driving while intoxicated and must not have obtained your policy through material misrepresentation. Benefit currently not available in HI, MI, NH, NC and TX.
§§ Limitations apply.
First Accident Forgiveness and the Disappearing Deductible, are only available with the Advantage Plus package. A policy without these benefits is also available. (Call for details.) To qualify for the Accident Forgiveness benefit in most states, all drivers on the policy must have a clean driving record (no accidents or violations) for five consecutive years. First Accident Forgiveness and Disappearing Deductible are not available to CA policyholders. To qualify for the Disappearing Collision Deductible benefit in most states, all drivers on the policy must have a clean driving record for three consecutive years. NY drivers are not eligible for the complete disappearance of the deductible, although it will be reduced to a minimum of $100. The Advantage Plus package option, the Disappearing Deductible benefit and the Accident Forgiveness benefit are not available in all states.
‡‡ One Deductible applies for any Home policy (Home Advantage or not) if Auto policy is also insured with The Hartford and includes the Advantage Plus package coverage.
Additional disclosures below.
AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.

The AARP Auto Insurance Program is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in CA by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MN, by Sentinel Insurance Company; and in MA, MI and PA, by Trumbull Insurance Company. The AARP Homeowners Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. In CA, it is underwritten by Property and Casualty Insurance Company of Hartford; in WA, MI, MN, by Trumbull Insurance Company; in MA by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, Hartford Accident and Indemnity Company; and in PA by Hartford Underwriters Insurance Company. Not available in all states, including FL. Specific features, credits and discounts may vary and may not be available in all states in accordance with state filings and applicable law. Applicants are individually underwritten and some may not qualify. Auto and Home are currently unavailable in Canada and U.S. Territories or possessions.

1 In Texas, the Auto Program is underwritten by Southern County Mutual Insurance Company through Hartford Fire General Agency. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Southern County Mutual Insurance Company. The Home Program is underwritten by Trumbull Insurance Company.