Coverage glossary

Settlement that pays the depreciated value of damaged property — age and wear reduce the check. Cheaper than replacement cost on premium, but can leave a large rebuild gap after a fire or storm.

Replacement vs ACVCompare

Coverage that helps pay temporary housing and extra living costs when a covered home loss makes the dwelling uninhabitable. Limits and time caps vary — thin ALE leaves you cash-strapped during rebuild.

After a loss

The licensed agent formally recognized by a carrier for your policy. Changing AOR is separate from shopping quotes; Parity shapes opt-in intent to agents — it does not appoint or bind.

Agents hubTrust

A temporary confirmation of coverage while a full policy is issued. A binder is not a permanent contract — verify effective dates, limits, and that the final policy matches what you thought you bought.

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Auto liability that pays others’ medical and related damages when you are at fault. Usually written as per-person / per-accident limits (e.g. 100/300). Thin BI is a classic cheap-quote trap.

When to shop autoCoverage parity

A packaged small-business policy that typically combines property and general liability. Parity’s demo BOP line is illustrative — not a live underwriting program.

Needs advisor

Cancellation ends a policy mid-term; nonrenewal means the carrier will not continue at the next renewal. Shopping before a nonrenewal window closes preserves options.

RenewalsWhen to shop auto

A snapshot that a policy exists with certain limits on a given date — often requested by landlords or contractors. A COI is evidence, not the policy itself.

In health, the percentage you pay after deductible (e.g. 20%) until you hit the out-of-pocket max. In property, a coinsurance clause can reduce a claim if you insure well below rebuild value.

Deductible vs OOPHealth hub

Auto coverage that pays to repair your vehicle after a crash with another car or object, subject to a deductible. Part of “full coverage” together with comprehensive and liability.

When to shop auto

Auto physical-damage coverage for non-collision perils — theft, hail, animal strikes, vandalism — usually with its own deductible.

Telematics & privacy

A fixed dollar amount you pay for a covered health service (e.g. $40 office visit). Copays often count toward the out-of-pocket max; plan designs vary.

Deductible vs OOPHealth hub

Parity’s core idea: a candidate policy matches or improves the coverage dimensions that matter — limits, deductibles, cost-share — not just a lower premium. Cheaper with thinner BI is worse, not better.

What coverage parity meansCompare

Limits for identity restoration, fraud expenses, and sometimes ransomware or data events. Monitoring stickers are not a substitute for meaningful expense limits.

Cyber / identity

The summary sheet listing named insureds, addresses, limits, deductibles, premiums, and forms. Always compare the dec page to what you were quoted — marketing blurbs are not the contract.

Policies

What you pay out of pocket before insurance pays on a covered claim. Higher deductibles usually lower premium but raise cash needed after a loss. Auto often has separate collision and comprehensive deductibles; home may have wind/hail or percentage deductibles.

Deductible vs OOPWhen to shop auto

The homeowners limit that rebuilds the structure. Adequacy vs rebuild cost (and settlement at RC vs ACV) matters more than a cheap premium. Underinsuring can trigger coinsurance-style shortfalls.

Replacement vs ACVCompare

The day coverage begins. Gaps between canceling an old policy and a new effective date leave you exposed — align dates carefully when switching.

Renewals

A written change that adds, removes, or modifies coverage on a base policy (water backup, scheduled jewelry, umbrella follow-form, etc.). Dropping an endorsement your current policy carries can be a silent exposure regression.

Coverage parityCompare

A peril or situation the policy does not cover (flood and earthquake are classic homeowners exclusions). Exclusions explain why a cheap quote can still leave catastrophic gaps.

Coverage parity

In Parity, exposure means the financial risk you still carry. An exposure regression is when a cheaper quote silently thins a limit, raises a deductible, or drops an endorsement you rely on.

Coverage parityShop

Separate coverage for inundation — standard homeowners excludes flood. Building and contents limits should reflect rebuild/replace needs, not land value; high deductibles demand a cash reserve.

Needs advisor

Informal phrase for liability plus collision and comprehensive. It is not a legal term — always read the actual limits and deductibles. Liability-only is cheaper until you wreck your own car.

When to shop auto

Where the vehicle is principally garaged — a rating factor. A garage ZIP that differs from your household ZIP can change premium and eligibility; mismatches deserve a second look.

When to shop auto

A common open-peril dwelling / named-peril contents homeowners form. Endorsements (water backup, ordinance or law) still decide real-world adequacy.

Replacement vs ACV

High-deductible health plans pair with HSAs for tax-advantaged medical savings. Premium can look low while a bad-year deductible + coinsurance still hurts — compare total cost of care, not premium alone.

Deductible vs OOPHealth hub

The named insured owns the policy contract. Additional insureds get limited rights under the policy (often for liability). Titles and mortgagees appear for different reasons — keep the dec page accurate.

Coverage for amounts you legally owe others for injury or property damage. Auto BI/PD, homeowners personal liability, and umbrella sit on top of primary limits.

Coverage parityNeeds advisor

The maximum the insurer will pay for a covered loss under a coverage part. Per-occurrence, aggregate, and sublimits (jewelry, electronics) all matter when comparing quotes.

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See Additional living expense — coverage for extra living costs when a covered loss makes your home unlivable.

After a loss

In this demo, shop quotes are educational illustrations for parity scoring — not live binds or licensed offers. Real markets require appointments and underwriting.

ShopTrust

The most you typically pay in a plan year for covered in-network care (deductible + coinsurance + copays, per plan rules). After OOP max, the plan pays 100% of covered services for the rest of the year.

Deductible vs OOPHealth hub

Homeowners/renters limit for belongings. Replacement-cost endorsements on contents matter; scheduled items and sublimits catch jewelry, bikes, and electronics.

Claims ready

What you pay for the policy. Useful — but incomplete. Parity scores coverage dimensions so a lower premium with thinner limits is labeled worse, not a win.

Coverage paritySavings ledger

Auto liability that pays for damage you cause to someone else’s property. State minimums are often far below the cost of a newer vehicle.

When to shop auto

Settlement aimed at rebuilding or replacing with like kind and quality, without subtracting depreciation (subject to policy terms and limits). Contrast with ACV.

Replacement vs ACV

Another word for endorsement — an add-on that changes the base policy. See Endorsement.

Coverage parity

A smaller cap inside a larger limit (e.g. $1,500 for jewelry theft under personal property). Cheap policies often hide painful sublimits.

Compare

Discounts tied to driving data from an app or device. Can cut premium in exchange for privacy and scoring tradeoffs — read what is collected and how long it is kept.

Telematics & privacy

Life insurance for a set period (10/15/20/30 years) focused on income replacement. Contrast with whole life, which mixes permanent coverage and cash value with different tradeoffs.

Term vs whole lifeNeeds advisor

High-limit liability that sits above auto and home primary policies. Useful when assets or risk exceed primary BI/PD and personal liability — still requires adequate underlying limits.

Needs advisor

The carrier’s process of evaluating risk and deciding whether to offer coverage, at what price and terms. Demo marketplace quotes skip live underwriting.

Protects you when the at-fault driver has no insurance or too little. Parity treats missing or thin UM relative to your BI as an exposure problem — not a place to “save” premium.

When to shop autoCoverage parity

Endorsement for sewer/drain backup — often excluded from base HO-3. Dropping a water-backup rider your current policy carries is a common parity regression.

Replacement vs ACVCompare

Permanent life insurance with cash value. Different product and tradeoffs than term — compare purpose (income replacement vs legacy/cash value), not premium alone.

Term vs whole life

A separate (often percentage) deductible for wind or hail claims that can dwarf the all-other-perils deductible after a storm. Know the dollar amount before you shop on premium.

Replacement vs ACV