A
- Additional insured
- A person or organization added to someone else's insurance policy so they share its protections. Distinct from an interested party, an additional insured can be defended and covered under the policy, not just notified about it.
- Additional living expenses (ALE)
- Coverage in a renters or homeowners policy that pays for temporary housing, meals, and similar costs when a covered loss makes the home unlivable. Sometimes called loss-of-use coverage.
- Admitted carrier
- An insurance company licensed by a state's insurance department to sell policies in that state, backed by the state's guaranty fund. Non-admitted (surplus lines) carriers operate outside that system and typically cover harder-to-place risks.
- Aggregate limit
- The most a policy will pay in total across all claims during the policy period, as opposed to the per-occurrence limit, which caps what it pays for any single incident.
- Ancillary revenue
- Income a property management company earns beyond management fees, such as program revenue from insurance compliance programs, resident benefits packages, or application fees. Often measured per door per month.
C
- Cancellation notice
- The formal notification an insurer sends when a policy is being terminated before its expiration date. For property managers, resident policy cancellations are the main way portfolios silently fall out of compliance mid-lease.
- Captive insurance
- An insurance arrangement in which the insured business owns the entity that carries its risk, rather than paying premiums to an unrelated carrier. Large property management portfolios use captives to participate in the insurance economics of their own doors. Captive Management
- Certificate of insurance (COI)
- A one-page summary an insurer issues as evidence that a policy exists, showing the insured, coverage types, limits, and effective dates. A COI proves a policy was issued, not that it is still active, which is why point-in-time COI collection fails as a compliance method.
- Compliance rate
- The share of occupied doors in a portfolio that currently meet the lease's insurance requirement, through either a verified resident policy or enrollment in a waiver program. Manual tracking typically yields under 50%; automated programs run above 90%.
D
- Declarations page
- The front page of an insurance policy listing the named insured, address, coverage types, limits, deductibles, and policy period. The declarations page, not the COI, is the authoritative snapshot of what a policy covers.
- Deductible
- The amount the policyholder pays out of pocket on a covered claim before insurance pays the rest. Higher deductibles lower the premium but raise the cost of each loss.
E
- Effective date
- The date coverage under a policy begins. Compliance programs track effective dates alongside expiration dates to catch gaps between a move-in and the start of coverage.
- Endorsement
- A written amendment that changes a policy's terms, such as adding coverage, changing limits, or naming an interested party. Endorsements override the base policy language.
- Exclusion
- A provision that removes specific perils, property, or situations from coverage. Reading the exclusions is the fastest way to understand what any policy or waiver program actually does.
F
- Force-placed insurance
- Coverage a lender or property owner buys on a borrower's or resident's behalf when required insurance is missing, usually at higher cost and with narrower protection. Waiver programs are the modern alternative on the residential side.
H
- HO-3 policy
- The standard homeowners insurance form, covering the dwelling on an open-perils basis and personal property on a named-perils basis, plus liability. The most common policy for owner-occupied single-family homes.
- HO-4 policy (renters insurance)
- The insurance form behind renters insurance. It covers the resident's personal property, personal liability, and additional living expenses. It does not cover the building itself, which is the owner's policy's job.
- HO-6 policy
- Condo unit-owner insurance. It covers the interior of the unit, personal property, and liability, filling the gap between the unit owner and the association's master policy.
I
- Interested party
- A person or organization, typically the property manager or owner, listed on a resident's policy to receive notifications about cancellation, non-renewal, or changes. An interested party gets visibility, not coverage.
L
- Lapse
- A gap in coverage that occurs when a policy is canceled or expires without replacement. Lapses are the core problem in renters insurance compliance: most happen mid-lease and are invisible without continuous monitoring.
- Liability coverage
- Insurance that pays for injuries or damage the insured causes to others, including legal defense. In renters insurance, it is the piece that responds when a resident's negligence damages the property or harms a neighbor.
- Loss run
- A report from an insurer listing a policyholder's claims history: dates, causes, amounts paid, and reserves. Underwriters use loss runs to price risk on commercial and portfolio policies.
M
- Master liability policy
- A single property-level insurance policy under which residents without their own renters insurance are enrolled. It is the coverage behind a tenant legal liability waiver program. TLL Program
N
- Named peril vs open peril
- A named-peril policy covers only the causes of loss it lists, such as fire or windstorm. An open-peril (all-risk) policy covers everything except what it excludes. Open-peril coverage is broader and typically costs more.
P
- Per-occurrence limit
- The maximum a policy pays for any single incident, regardless of how many parties or claims arise from it. Tenant legal liability programs are typically quoted by their per-occurrence limit.
- Personal property coverage
- The part of a renters or homeowners policy that pays for the policyholder's belongings, such as furniture and electronics, after a covered loss. Waiver programs do not include it in their base form, which is one reason residents are better off with their own policy.
- Pet damage waiver
- A program that covers pet-caused damage to a rental property, and often related liability such as dog bites, in exchange for a monthly charge. An alternative to large upfront pet deposits. Pet Damage Waivers
R
- Renters insurance
- An HO-4 policy a resident buys that covers their personal property, personal liability, and additional living expenses. Most leases require it; enforcing that requirement is what renters insurance compliance means.
- Renters insurance compliance
- The process of verifying that residents maintain active renters insurance meeting their lease requirements, and resolving the gap when they do not, either by getting the policy reinstated or enrolling the resident in a waiver program. Compliance Guide
- Resident benefits package (RBP)
- A bundle of services a property manager provides to residents for a monthly fee, commonly including insurance compliance, credit reporting, rewards, identity protection, or air filter delivery. Priced per door and a common source of ancillary revenue. Renters Kit
S
- Security deposit alternative
- Any product that replaces the traditional upfront cash deposit while preserving the owner's protection against damage and unpaid rent, including surety bonds, deposit insurance, and waiver-style programs paid monthly. Security Deposit Alternatives
- Subrogation
- An insurer's right, after paying a claim, to recover that payment from whoever caused the loss. When a resident causes a fire, the owner's property insurer may subrogate against the resident, which is a key reason leases require resident liability coverage.
- Surety bond
- A three-party guarantee in which a surety company promises the property owner payment up to the bond amount if the resident fails to meet obligations. In deposit replacement, the resident pays a fee instead of a full deposit and remains liable for actual damages.
T
- Tenant legal liability (TLL) waiver
- A property-level program that covers damage a resident causes to the property, such as fire, smoke, or water damage, when the resident does not carry their own renters insurance. It protects the owner's property, not the resident's belongings. TLL Waiver Guide
U
- Underwriting
- The process by which an insurer evaluates a risk, decides whether to insure it, and sets the price and terms. In property programs, underwriting inputs include location, construction, age, claims history, and portfolio size.
W
- Waiver of subrogation
- A policy provision or lease clause in which one party's insurer gives up its right to recover a paid claim from the other party. Often negotiated in commercial leases; residential programs vary, so the program documents control.