Navigate & Understand YOUR Insurance Coverage

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Have you ever wondered how to navigate & understand YOUR insurance coverage?  You want your car to be insurance for fire and theft but your paperwork says comprehensive. You just got in to an accident and you were wondering if you have rental car coverage but again your paperwork says nothing. Insurance paperwork and insurance language can be confusing. The following is the most commonly used list of terms and coverage’s you will see on your paperwork. This should help you in how to navigate and understand your insurance coverage.

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Actual Cash Value – repayment value due to loss or damage of property; in most cases it is replacement cost minus depreciation. This will put you back to where you were before the claim. No better and no worse

Adjuster – a person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held.

Bodily Injury – physical injury including sickness or disease to a person.

Broker – an individual who receives commissions from the sale and service of insurance policies. These individuals work on behalf of the customer and are not restricted to selling policies for a specific company but commissions are paid by the company with which the sale was made.

Claim – a request made by the insured for insurer remittance of payment due to loss incurred and covered under the policy agreement.

Collision Coverage– An optional coverage designed to provide protection for your vehicle when damage occurs as a result of a collision with another object. This coverage is optional and may be purchased in addition to the mandatory coverage’s required by law, and it is subject to a deductible

Comprehensive coverage– Comprehensive insurance reimburses you for damage to your own car from causes other than collision or overturning. The comprehensive portion of your policy pays for loss due to perils like hail, flood, theft, fire, glass breakage, falling objects, missiles, explosions, earthquakes, windstorms, vandalism or malicious mischief, riot or civil commotion, and collision with a bird or an animal.

Deductible – Portion of the insured loss (in dollars) paid by the policy holder. This is the amount you are responsible for paying in the event of a claim.

Hard Market – a market characterized by high demand and low supply

Liability – a certain or probable future sacrifice of economic benefits arising from present obligations of a particular entity to transfer assets or to provide services to other entities in the future as a result of a past transactions(s) or event(s). three essential characteristics: a)   It embodies a present duty or responsibility to one or more other entities that entails settlement by probable future transfer or use of assets at a specified or determinable date, on occurrence of a specified event, or on demand; b)   The duty or responsibility obligates a particular entity, leaving it little or no discretion to avoid the future sacrifice; and c)   The transaction or other event obligating the entity has already happened.

Named Insured – the individual defined as the insured in the policy contract. With Auto Insurance this also the name that must be on the ownership.

OPCF 20 – This Endorsement will cover the cost of a rental vehicle while your vehicle is being repaired or replaced (if the damage or loss is caused by a peril for which you are insured).In order to purchase an OPCF 20, you must have collision and/or comprehensive on your auto policy.

OPCF 27 – The coverage comes in the form of an endorsement known as “Legal Liability for Damage to Non-Owned Automobiles.” It is also referred to as the “Rental Vehicle Insurance Endorsement”. This will let you rent a car anywhere in Canada or the USA and opt out of the rental cars insurance. The usual amount of coverage is 50 000. So if this is the case don’t rent a car valued at 50 000 dollars. If you’re unsure of your limit call your broker.

Renters Insurance – liability coverage for contents within a renter’s residence. Coverage does not include the structure but does include any affixed items provided or changed by the renter.


Curious about more insurance terms?  Check out this glossary of insurance terms published by If you are still unsure of confused about your policy or your paperwork, than please contact us at Absolute Insurance Brokers. We will be happy to walk you through and explain your coverage’s to you! You can you always give us a call at 1-877- 941-2266 or send us an email!

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