Understanding Insurance Terms: A Guide from Atlas Insurance
Experiencing a loss—whether from a storm, accident, or unexpected event—can be overwhelming. Filing an insurance claim often adds another layer of stress, especially if you’re unfamiliar with the process or terminology.
At Atlas Insurance, we’re here to walk you through every step. Still, it can be helpful to understand some common terms and concepts before or during the claims process. Keep this guide handy as a quick reference.
🔍 Common Insurance Terms You May Encounter
Term
What It Means
Independent Insurance Agent
A licensed agent who represents multiple insurance companies—not just one. At Atlas Insurance, our agents work for you, helping you find the best policy, coverage, and price based on your needs.
Independent Insurance Agency
Atlas is an independent agency, meaning we partner with a variety of insurance carriers to offer our clients more choice and flexibility. We are not tied to one provider.
Captive Agent
A captive agent works for a single insurance company and can only offer that company’s products. Unlike independent agents, they cannot shop around on your behalf.
Insurance Carrier
Also called an insurance company, the carrier is the business that underwrites and provides your insurance coverage in exchange for premium payments.
Underwriting / Underwriter
The process and people involved in evaluating your risk to determine what coverage you qualify for and how much your premium should be. This assessment can change after a claim is filed.
Claims Representative
A representative from the insurance company assigned to your claim. They handle the process on the carrier’s behalf and are not employed by Atlas. They assess coverage, determine payout amounts, and guide the claim to resolution.
Claims Adjuster
A professional (employed by or contracted with the insurance carrier) who investigates and evaluates your claim, including inspecting damage and determining the cost to repair or replace.
Public Adjuster
A licensed claims expert hired by you, not the insurance company, to assess damage and negotiate on your behalf. They can be helpful in complicated or disputed claims.
Premium
The amount you pay (monthly, quarterly, or annually) to keep your insurance policy active. Claims do not eliminate the need to continue paying your premium.
Deductible
The out-of-pocket amount you are responsible for before your insurance kicks in. For example, with a $500 deductible on a $4,000 claim, you would pay $500 and the insurance company would pay $3,500.
Document Submission
Supporting documents such as photos, police reports, or repair estimates that help prove your loss and support your claim.
Claim Processing Time
The time it takes for your insurance carrier to review, investigate, and settle your claim. This can vary based on the type of loss and complexity of the claim.
Claim Status / Progress
Indicates where your claim is in the review and approval timeline. Most carriers offer self-service portals, while others provide updates via email or text. Your claims representative or your Atlas agent can help check in.
Claim Rejection / Denial
If your insurance carrier determines that your situation is not covered under your policy, your claim may be denied. You will receive a written explanation referencing your policy terms.
Claim Appeal
If you disagree with a denial, you can appeal. Appeals often need to be filed within a certain timeframe (e.g., 14 days). Public adjusters or legal counsel may assist.
Claim Approval
When your claim is approved, you’ll receive a payout offer based on your policy’s terms. If you accept the offer, you close the claim and cannot appeal later.
Claim Cancellation
Once a claim is submitted, it cannot be withdrawn. Even if you choose not to pursue payment, the claim will stay on your insurance record. Always consult with your Atlas agent before filing.
Loss
The damage or harm suffered from a covered event. Losses can be physical (property damage), financial, emotional, or reputational.
Third Party
Any person or entity not covered under your insurance policy but who may be affected by an incident—such as another driver or neighbor in a liability situation.
Exclusion
A specific situation, risk, or item not covered under your insurance policy. For example, many standard home policies exclude flood damage unless added separately.
Endorsement (Rider / Scheduled Item)
Optional additions to your policy that expand coverage. Common endorsements include sewer backup, valuable item coverage, or Additional Living Expenses (ALE).
Peril
A cause of loss, such as fire, theft, windstorm, or vandalism. Your policy outlines which perils are covered and which are not.
Additional Living Expenses (ALE)
If your home is uninhabitable after a covered loss, ALE coverage may reimburse you for temporary housing, meals, and other living costs. Ask your Atlas agent if this coverage is included in your policy.
Replacement Value (RV)
Pays the cost to replace a damaged or stolen item with a new one of similar kind and quality—regardless of depreciation.
Actual Cash Value (ACV)
Pays the item’s value at the time of loss, minus depreciation. For example, a five-year-old TV originally bought for $1,000 may only be worth $750 today. That’s what ACV would cover.
🛟 Atlas Insurance Is Here to Help
This guide is not exhaustive, but it covers many of the terms you may come across during a claim. Remember: you don’t have to navigate this process alone. Our team is always ready to:
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Explain your policy coverage
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Help determine whether filing a claim is in your best interest
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Support communication with your carrier throughout the claims process
📞 Have questions? Call your Atlas Insurance agent—we’re always in your corner.
