Actual Cash Value
The cost of repairing or replacing damaged property with property of the same kind and quality, less depreciation (i.e., in the same physical condition as the original property prior to damage).
Extra coverage that can be purchased to provide protection above and beyond that provided in the homeowners policy (e.g., a higher amount of coverage against the theft of jewelry). When such additional coverage is purchased, it becomes an Endorsement or Rider to the original policy.
Additional Living Expense
ALE provides reimbursement for motel rooms, meals and other expenses while a house is being repaired or rebuilt.
Determine the insurer’s liability for loss when a claim is filed.
An insurance sales office.
A request made by an insured for payment of benefits.
Protection provided under an insurance contract.
A decrease in the value of property due to use, time and wear and tear.
Excludes liability coverage.
An add-on to an insurance policy that increases coverage.
Events, conditions or circumstances that are not being covered under an insurance policy.
Lying to receive payment of an insurance claim.
The party covered by an insurance policy.
Insurance that pays protects policyholders from bodily injury or property lawsuits.
Loss of Use
See Additional Living Expense
The price a house would sell for under current market conditions.
An event or circumstance that causes loss.
See Liability Insurance.
A contract between the insurance company and the policyholder that outlines which perils are and are not covered.
The amount of money a policyholder pays an insurance company for insurance coverage.
Insurance that covers damage to a policyholder’s property.
Insurance for renters that covers personal property and liability.
The cost of replacing property without deducting depreciation.
The chance of loss.
A person who reviews applications for insurance coverage and decides if the applicant will be insured and at what price.