Actual Cash Value (ACV): Actual Cash Value is the amount insurance will reimburse you for repairs or replacements based on depreciation, condition, and current market value. It is lower cost but doesn’t always cover your full asset investment.
Additional Living Expenses (ALE): Additional Living Expenses are costs incurred when you are displaced from your living arrangements under an insurable event. This ensures you can cover temporary living expenses while your claim is handled.
Agreed Value Policy: This is a policy in which you and your Insurer agree to the value of your item and insure it at that fixed value. This type of policy is commonly used in Classic Car Insurance policies or to insure classic, vintage, or antique items of high value.
Appraisal: An appraisal is an inspection of an item or property intended to estimate the current value or an expected repair cost.
Cancellation: This applies to a policy that is terminated before the end date by the policyholder or Insurer.
Claim: Policyholders, associated parties, or other insurance companies may file for reimbursement of losses in an insurable event, thus creating an insurance claim.
Classic Automobile: Classic Vehicles are classified as antique, vintage, or collector vehicles older than ten years and have historical or social significance. These vehicles are not used as primary vehicles.
Classic Car Insurance: A specific type of insurance to protect classic cars from damage, destruction, and depreciation. These policies have specific definitions of “Classic Car.”
Collision Coverage: This type of coverage protects your vehicle from damage or destruction after an accident, regardless of who is at fault.
Comprehensive Coverage: This optional type of coverage can cover you in an unexpected event in which your vehicle or property is damaged.
Conditions: These are specifications in your insurance policy that detail requirements for coverage.
Condominium Owners Policy: This policy helps cover your townhome or condominium from certain perils that are not covered by your building management or HOA.
Declarations Page: This page is provided by the Insurer as a summary of the coverages provided under a given policy.
Deductible: This is the amount of money that you must pay before your Insurer assumes cost responsibility.
Depreciation: This is a decrease in the value of an asset or item from its original value.
Dwelling Fire Policy: This policy provides protection for a dwelling that is being rented to others. It is also known as a Landlord policy.
Dwelling Replacement Cost Plus/Guarantee: This is additional coverage from your policy, which guarantees to cover the full cost of repairs, even if those costs extend beyond the limits of your base coverage.
Endorsement: This is a change to an existing policy that changes the terms or coverage within that policy.
Exclusion: Specifications on a policy that detail events or circumstances that are not insurable or covered.
Flood Insurance: This is a specific type of coverage required for structures within flood zones. Standard homeowners insurance policies do not include coverage for floods.
Garaging Location: This is an address where a vehicle is parked or garaged. The garaging location can sometimes differ from the insured’s primary residence or mailing address.
Hail Coverage: Specific coverage for damage resulting from hail, including structural or agricultural damage.
Hazard: This is something identified in your policy as a potential insurable event, like a fire or natural disaster.
Homeowners Insurance Policy: A specific type of insurance intended to protect a home that you purchase. If you are taking out a mortgage, homeowners insurance will be required in order to purchase a home.
Indemnification: This means that your Insurer will pay for losses on covered events.
Insurable Interest: An item or asset an insured has a financial interest or stake in that could be covered under an insurance policy.
Insured: The person who is covered or will receive benefits under an insurance policy
Insurer: The Insurance Company providing insurance coverage for the insured
Landlord Policy: A type of coverage for Landlords to protect their property from damage that may result from renters or while renters are leased on the property.
Lapse: This is when there is a gap in coverage due to a lack of payment on policy premiums.
Liability Coverage: This coverage protects you legally and financially against claims of damage or injury to someone else or their property.
Lien: A lender’s claim against an owner’s assets to secure an unpaid debt.
Lien Holder: A party that holds a person’s loan until it’s paid in full. An example would be a bank holding an auto loan. They are named as a lien holder until the loan is paid in full.
Limits of Insurance: The highest amount of insurance policy will cover the event of damage, destruction, or injury
Loss: Any damage, destruction, or injury that results in an insurance claim.
Loss Assessment Coverage: This is additional coverage that is recommended for townhome and condo owners who might be liable for common area costs.
Loss History: This is the record of loss or insurance claims tied to a certain property, asset, or vehicle.
Loss of Use: The inability to use an asset or live in a property following an insurable event.
Market Value: This is an insurable amount defined by the appraised value of that asset or property compared to the local and national market.
Medical Payments (Auto): Payments made to cover medical bills resulting from an auto accident.
Medical Payments (Property): This coverage may provide payment for minor medical expenses incurred from an accident on your property.
Mitigation: This means that an insured party suffering a loss has taken action to prevent additional loss or claims.
Motor Vehicle Report (MVR): This is essentially a background check on your driving history. It includes information on previous events, tickets, or accidents.
Named Insured: These are the name(s) of the people who pay for and are covered under a given insurance policy.
Named Perils: These are specific events or examples of loss that are named in an insurance policy,
Ordinance or Law Coverage: This helps cover your home in the event of destruction and will cover upgrade costs to meet local building codes and requirements.
Other Structure: This is coverage that helps cover structures detached from your residence, like a fence, shed, or detached garage.
Personal Injury (Homeowners Insurance): Provides coverage for personal injury to others, such as libel, slander, malicious intent, and invasion of privacy.
Personal Injury Protection (Car Insurance): A type of protection that covers medical costs for a personal injury resulting from an injury in an auto accident.
Personal Property: This is defined as your personal belongings that exist within your home or vehicle.
Personal Umbrella Policy: A type of coverage that provides extra insurance and protection beyond the limits of your base homeowners or car insurance policies.
Physical Damage: A type of coverage designed to protect your vehicle from damage resulting from an accident.
Policy: A line of insurance. One person will hold multiple policies, like a homeowners insurance policy and a car insurance policy.
Policyholder: The person(s) named on the policy.
Premium: Your scheduled payments to your Insurer: often paid monthly, every six months, annually, or rolled into an Escrow account for a homeowners insurance policy.
Primary Driver: The individual named under a car insurance policy as the vehicle’s main operator.
Property: Broadly defined as physical property that can be insured, like a home, jewelry, antiques, etc.
Property Damage Liability Coverage (Car Insurance): A type of coverage that will take care of costs resulting from property damage caused by your motor vehicle.
Real Property: Land or structures attached to the land, including landscaping and your home.
Rental Reimbursement (Car Insurance): A cost that covers a rental car in the event your car is unusable resulting from an insurable event.
Renter’s Policy (Tenant’s Policy): A type of coverage that helps cover you while renting someone else’s property. Intended to protect your personal property damage and liability.
Replacement Cost Value (RCV): The cost of repairs on a home or vehicle based on market prices.
Roadside Assistance: Assistance for motor vehicle events resulting in a temporarily disabled vehicle.
Scheduled Personal Property: An extension of coverage beyond your homeowner’s policy. Intended to insure high-value items such as jewelry, fine arts, and collectibles.
Uninsured and/or Underinsured Bodily Injury Coverage: Provides medical cost coverage to you if you are impacted by a motorist who is uninsured or underinsured.
Uninsured and/or UnderContent-Typerists Property Damage: Provides cost coverage on property damage resulting from an uninsured or underinsured motorist.
Vehicle Identification Number: Your vehicle’s unique identification number is used to differentiate your vehicle from every other vehicle on the road.
Water Backup of Sewers or Drain Coverage: Provides coverage in the event your home or personal property is damaged from a water or sewer backup.
Windstorm Coverage: A special type of coverage intended to cover your property from damage resulting from strong gusts or winds.