home · glossary
the jargon, decoded.
Twenty terms that show up in every policy and loan — defined the way we'd explain them across the table. In four languages, if you call.
- premium
- What you pay for insurance, monthly or per term. Determined by your risk profile, coverage choices and the carrier's appetite — which is why comparing carriers matters.
- deductible
- Your share of a covered loss before insurance pays. Higher deductible = lower premium. Colorado homeowners: check your separate wind/hail deductible.
- liability coverage
- Pays for injuries and damage you cause to others. The part of insurance that protects your savings and future wages from a lawsuit.
- full coverage
- Casual term for liability + comprehensive + collision on an auto policy. Not a real policy term — always check what's actually included.
- comprehensive
- Auto coverage for non-collision events: hail (hello, Colorado), theft, vandalism, deer strikes, falling branches.
- collision
- Auto coverage for damage to your own car from a crash, regardless of fault.
- uninsured motorist
- Protects you when the at-fault driver has no insurance — roughly 1 in 6 Colorado drivers. Inexpensive and strongly recommended.
- replacement cost
- Pays what it costs to rebuild or replace at today's prices, versus 'actual cash value' which subtracts depreciation. The difference is enormous after a total loss.
- binder
- Temporary proof of coverage issued before the formal policy — what your mortgage lender needs before closing.
- endorsement / rider
- An add-on changing what a policy covers — jewelry riders, water backup, home business endorsements.
- umbrella policy
- Extra liability ($1M+) sitting on top of auto and home limits. Costs roughly $150–$400 a year for most households.
- escrow
- The account your mortgage lender uses to pay property tax and home insurance from your monthly payment.
- premium audit
- A business policy true-up: the carrier verifies payroll/revenue after the term and adjusts the premium to match reality.
- certificate of insurance (COI)
- Proof a business carries coverage — landlords and contracts demand them. We issue same-day.
- workers compensation
- Covers employee work injuries. Required in Colorado for nearly every business with employees — including part-timers.
- business owners policy (BOP)
- Bundle of general liability + commercial property + business interruption, priced lower than the pieces.
- term life
- Life insurance for a fixed window (10–30 years). Maximum protection per dollar while obligations are highest.
- beneficiary
- Who receives a life insurance payout. Review after every marriage, divorce or birth — the form on file always wins.
- PMI (private mortgage insurance)
- Protects the lender when you put under 20% down. Disappears once you reach ~20% equity — sometimes faster with a refi.
- APR vs interest rate
- Rate = cost of borrowing; APR = rate + fees, the truer comparison number between loan offers.
still translating? just ask.
Ten minutes with an advisor beats an hour with a dictionary. No charge, no pressure.