North Carolina Home Insurance Glossary

Use these short definitions as a starting point. The policy and applicable requirements control the meaning in a specific situation.

Admitted insurer

An insurer authorized by a state to write particular insurance there. The insurer, product, and transaction must still be evaluated for their actual scope.

Surplus lines

A lawful route for certain placements with nonadmitted insurers through the required licensed intermediaries. It has different regulatory and financial-protection characteristics from admitted coverage.

Nonadmitted insurer

An insurer that does not hold the same state authorization as an admitted insurer for the placement. Eligible surplus lines insurers and their placements remain subject to applicable requirements.

Replacement cost

A loss-settlement basis that can pay the cost to repair or replace covered property subject to the policy’s limits and conditions. It is not an unlimited rebuilding promise.

Actual cash value

A valuation basis that generally reflects depreciation, subject to the applicable policy language and law. Ask how it applies to the roof, dwelling, and belongings separately.

Deductible

The amount of a covered loss assigned to the insured before the policy pays, subject to the policy structure. A percentage deductible may be based on an insured value, not the loss amount.

Endorsement

A document that changes the policy. An endorsement can expand, restrict, or exclude coverage and must be read with the main form.

Exclusion

Policy wording that removes particular causes of loss, property, activities, or circumstances from coverage.

Nonrenewal

A decision not to continue a policy after its term. It differs from cancellation during the term and does not by itself explain which replacement options remain available.

Binder

Written evidence of temporary insurance, subject to its terms, issued by a party authorized to bind. A quote request or payment instruction alone is not a binder.

FAIR Plan

In North Carolina, the residual-market arrangement operated by the North Carolina Joint Underwriting Association. Eligibility and coverage depend on current program requirements.

Coastal Property Insurance Pool

The North Carolina Insurance Underwriting Association program, also commonly called the Beach Plan. Its products and eligibility differ from the FAIR Plan and from flood insurance.

Flood

A distinct water-related cause of loss defined by the relevant flood policy. Standard homeowners policies generally exclude flood; review any separate flood protection and exceptions.

Loss of use

Coverage that may address qualifying additional living expenses or loss of rental value after a covered loss, subject to the policy’s terms, limits, and time restrictions.

Force-placed insurance

Insurance a mortgage servicer may arrange when required coverage is missing or not documented. Its protection and cost can differ materially from a homeowners policy.

For context and official sources, read the surplus insurance guide and the North Carolina FAIR Plan and Coastal Pool guide.