Actual Cash Value
The value of damaged property after depreciation is considered. It may be less than the cost to replace the item with a new one.
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Insurance Glossary
Insurance terms in plain English.
A policy can be hard to understand if the terminology is unfamiliar. These definitions are a starting point for better conversations about your coverage.
Coverage Limit
The maximum amount a policy may pay for a covered loss, subject to the policy's terms and conditions.
Deductible
The portion of a covered loss you are generally responsible for before insurance payment applies.
Endorsement
A change or addition to a policy that can add, remove or modify coverage.
Exclusion
A circumstance, type of loss or property that a policy specifically says is not covered.
Liability Coverage
Coverage that may help protect you when you are legally responsible for injury to another person or damage to someone else's property.
Premium
The amount charged for insurance coverage during a specified policy period.
Replacement Cost
A method of valuing covered property based generally on the cost to repair or replace it with comparable property, subject to policy terms.
Umbrella Insurance
Additional liability protection that may apply above certain underlying personal or business liability policies.
Underwriting
The process used to evaluate risk and determine whether coverage can be offered and under what terms.
These are general explanations, not policy definitions. Your policy language controls how a term or coverage applies to a particular situation.