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Guide: glossary

What do common insurance terms mean in Sint Maarten?

Policies use words that can be hard to follow. This glossary gives a one-sentence meaning for each of 37 common terms, with a link you can share to any one of them.

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Quick answer: This glossary explains 37 insurance terms in one sentence each, from deductible and excess to indemnity, exclusion, named storm and sum insured. The meanings are general. The wording of your own policy decides what a term means for you, so ask your insurer or advisor if a definition matters to a decision.

Key facts

Key fact In short
Who it is for Anyone reading a policy, a quote or a claim letter in Sint Maarten
How to use it Jump to a term from the list below, or link straight to it with its own address
What it does not do Replace your policy wording, which decides what a term means in your contract
What to ask an advisor Which of these terms apply to your policy, and what the numbers are in dollars

Which terms are explained here?

What do the terms mean?

Actual cash value
The cost of replacing an item minus an allowance for its age and wear, which is what some policies pay instead of the full replacement cost.
Adjuster
A person who inspects damage and assesses a claim, usually on behalf of the insurer.
Aggregate limit
The most an insurer will pay for all claims of a stated kind during the policy period.
Beneficiary
The person or organisation named to receive the payout under a policy, most often a life insurance policy.
Broker
An intermediary who can explain your options and ask more than one insurer for quotes.
Business interruption
Cover for income lost while a business cannot operate after a covered loss, usually an extension with a waiting period and a limit.
Claim
A request to your insurer to pay for a loss that you believe the policy covers.
Co-insurance
A clause under which you pay a share of each covered loss, or are penalised if the sum insured is below an agreed percentage of the value.
Comprehensive cover
Motor insurance that covers damage to your own vehicle from listed events as well as your liability to others, subject to the policy terms.
Deductible
The part of a covered loss that you pay yourself before the insurer pays the rest.
Depreciation
The loss in value of an item through age and use, which an insurer may subtract when it settles a claim.
Endorsement
A written change to a policy that adds, removes or alters cover, also called a rider or an extension.
Excess
Another word for the deductible, the amount you pay towards a covered claim.
Exclusion
Something the policy says it does not cover, such as a cause of loss, a type of property or a place.
Flood
Water that enters or covers property from rising water, and which a policy may define in a specific way, so it is worth reading how yours does.
Grace period
A short time after a premium is due during which the policy normally stays in force if you pay.
Indemnity
The principle that insurance should put you back in the financial position you were in before the loss, not better.
Insured
The person or business whose loss or liability the policy covers.
Insurer
The company that carries the risk and pays covered claims.
Liability
Legal responsibility for injury or damage to other people or their property.
Limit
The most an insurer will pay for a loss or a type of loss under a policy.
Named storm
A tropical storm or hurricane that has been given a name by the forecasting agencies, and which some policies treat differently from other losses.
Named-storm deductible
A separate deductible, often a percentage of the sum insured, that applies only to losses caused by a named storm.
Peril
A cause of loss that a policy names, such as fire, theft, windstorm or flood.
Policy
The contract between you and the insurer, made up of the schedule, the wording and any endorsements.
Policyholder
The person or business that holds the policy and agrees to its terms, who is often the insured as well.
Premium
The price you pay for the insurance, which may be paid yearly or in instalments.
Proof of loss
The documents and statement an insurer asks for to show what was lost or damaged and what it was worth.
Renewal
The offer to continue a policy for another period, often with updated terms and a new premium.
Replacement cost
The cost of repairing or replacing damaged property with new property of the same kind, without taking off for age.
Storm surge
An abnormal rise of water generated by a storm, over and above the predicted tide, according to the National Hurricane Center.
Subrogation
The insurer’s right, after it has paid a claim, to recover the money from whoever caused the loss.
Sum insured
The amount of cover you choose for property, which is also the most the insurer will normally pay for it.
Third party
Anyone other than you and your insurer, such as the person you injure or whose property you damage.
Third-party liability
Cover for your legal responsibility to pay for injury or damage you cause to someone else.
Underinsurance
Having a sum insured lower than the real value or rebuilding cost, which can reduce what you are paid on a claim.
Waiting period
The time after a policy starts, or after a loss, before cover or a benefit begins.

Frequently asked questions

What is the difference between a deductible and an excess?

In most policies they mean the same thing: the amount you pay towards a covered claim before the insurer pays the rest. Different insurers and countries prefer one word or the other, so check how your own policy uses them.

What does indemnity mean in an insurance policy?

Indemnity means the insurer aims to put you back in the financial position you were in before the loss, not a better one. That is why policies talk about the value of what was lost, and why depreciation and limits can matter to the amount paid.

What is a named-storm deductible?

It is a deductible that applies only to losses caused by a named storm and is often a percentage of the sum insured. Not every policy has one, so ask whether yours does and what it would be in dollars.

What is the difference between the sum insured and the limit?

The sum insured is the amount of cover for the property you insure, while a limit is the most the insurer will pay for a loss or a type of loss. A policy can have both, so read the schedule to see which applies to what.

Sources

The other terms are general insurance meanings. Your policy wording is the authority for what a term means in your contract.

  1. Storm surge, National Hurricane Center, NOAA. Source for the storm surge definition.

Written by the Enterprise Insurance team. Not yet reviewed by a named advisor. Last updated .

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An advisor can look at your own situation, request quotes from insurers and explain the policy wording.

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This website gives general information about insurance. It is not personal advice, a recommendation or an offer of cover. Terms, limits, exclusions and availability depend on the insurer and the policy wording.

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