Actual Cash Value is the amount paid for a piece of property, minus the amount that the property has depreciated over time.
Additional Living Expenses are additional amounts of coverage provided by a homeowners insurance policy to pay for the cost of living if the insured home is no longer habitable.
Deductible is the amount of the loss for which the policyholder is responsible for paying. It is usually expressed in a policy as a fixed dollar amount or as a percentage of the total loss.
Endorsement is an addition to a policy that a homeowner or renter may take out to insure property of exceptional value not covered by a standard policy. Specialized computer equipment or fine art would often be covered under an endorsement. Also referred to as a Rider.
Flood Insurance is a separate policy that covers property damage caused by a flood. Most standard homeowners policies do not cover flood damage.
Homeowners Insurance covers loss of property due to fire, natural disaster, theft, or vandalism. It also offers protection against liability in the event someone is injured on the property of the policyholder.
Insured Premises refers to the home, land, and other fixed structures on the property of a homeowners insurance policyholder.
Liability is an amount that a homeowner/renter may be obligated to pay in legal damages if someone injures themselves on the homeowner/renter’s property or premises.
Loss is the damage to or destruction of property incurred by a homeowner or renter.
Multiple Line Insurance refers to the buying of several kinds of insurance through a single company. For example, you might get homeowners insurance and auto insurance through the same company. There is usually some savings when you purchase multiple line insurance.
Named Peril is a specifically-named threat to property covered in a homeowners or renters insurance policy.
Notice of Loss is the written statement of damage to or destruction of property that must be provided to an insurance company for a policyholder’s claim to be filed.
Outbuilding is a structure on the policyholder’s property that is not attached to the house. An outbuilding may or may not be covered by a homeowners insurance policy.
Perilis a potential threat to the policyholder’s property. In many policies, the threat must be specifically named in order to be covered by the policy.
Premium is the regular payment made by a policyholder to an insurance company to keep the policy in good standing.
Proof of Loss is documentation of damage to or destruction of property that a policyholder must provide to an insurance company for a claim to be paid.
Renters Insurance covers loss of property due to fire, natural disaster, theft, or vandalism for a renter. It also offers protection against liability in the event someone is injured in the rental unit of the policyholder.
Replacement Cost is the cost of replacing damaged or destroyed property at current market rates.
Rider is an addition to a policy that a homeowner or renter may take out to insure property of exceptional value not covered by a standard policy. Specialized computer equipment or fine art would often be covered under a rider. Also referred to as an Endorsement.
Vandalism is the malicious damaging or destruction of another’s property. Vandalism is typically covered under standard homeowners and renters insurance.
Water Damage is damage caused by rain or bursting pipes. This damage is usually covered in standard homeowners and renters insurance. Note that this does not include damage caused by floods.
