The Key Terms of Insurance Every Policyholder Needs to Know

It doesn’t matter if you’re taking out a homeowners insurance policy or an auto insurance policy. You need to understand what your coverage covers. To fully understand your insurance coverage, it is important to familiarize yourself with the terms and conditions that may be included in your policy. These are the key terms to understand when looking at an insurance policy.


An endorsement is a modification to your insurance policy. An endorsement will change the contents of your insurance contract. These could be modifications to your standard policy that are issued by the insurance company in response to changes.

Bodily Injury

Many policies define bodily injuries as illness or disease, bodily damage, and the possibility of losing services or dying. Although the bodily injury is covered by insurance, it will usually only cover the physical manifestations of the injury and not any emotional damage cost.

Resident in a Household

A homeowners insurance policy will define the insured as the residents named in the insured house identification. Florida courts will decide who is a household resident. It is often individuals who have a kinship to one another.


Indemnity refers to the act of paying another person for their liability to another party. A homeowners policy that includes personal liability covers will cover the cost of reimbursing an uninsured person for any damages they may have caused. This could include property damage or third-party bodily injuries.

Limits on Liability

In any case, insurance policies will cover losses up to a specific amount. The maximum amount that an insurance provider will cover is called the liability limit. These limits can be increased by changing your insurance policy.

These are some of the most important terms you need to be aware of when reviewing your insurance policy. These terms should be kept in mind when you review your coverage.

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.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information.  This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.