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 homeowner’s 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.
Earthquake Insurance is a separate insurance policy that covers
property damage caused by an earthquake. Most standard homeowner’s policies
do not cover earthquake damage.
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
a endorsement. Also referred to as a Rider.
Flood Insurance is a separate policy that covers property damage
caused by a flood. Most standard homeowner’s policies do not cover flood
damage.
Homeowner’s 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 homeowner’s 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, one might get homeowner’s
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 homeowner’s or renter’s 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 homeowner’s insurance policy.
Peril is 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.
Renter’s 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 homeowner’s and renter’s
insurance.
Water Damage is damage caused by rain or bursting pipes. This
damage is usually covered in standard homeowner’s and renter’s insurance.
Note that this does not include damage caused by floods.
