Actual Cash Value
Replacement cost less depreciation.
Additional Living Expense
Extra living expense incurred from property damaged (by an insured peril) is repaired.
Adjuster
A person who seeks to determines the amount of loss when an insurance claim is submitted and attempts to settle the claim.
Agent
A person who represents one or more insurance companies, under contract, in a sales or service capacity and is paid a commission.
Appraisal
A method of determining the amount of loss when a disagreement exists between the insured and the insurance company.
Broker
A marketing specialist who represents buyers of insurance and deals with either agents or companies in arranging coverage by a customer.
Claim
A demand to recover, under an insurance policy, for a loss covered by that policy.
Conditions
Your duties and a list of rules if a loss occurs.
Declaration
The part of a policy that includes information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage and applicable premiums.
Deductible
An amount that the policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss.
Depreciation
A decrease in the value of property due to wear and tear or obsolescence.
Endorsement
Additional information attached to your policy that changes the provisions in your policy. Sometimes called a rider.
Exclusion
Perils not covered by your insurance policy or contract.
Floater
Applies to movable property, wherever it is located, within the territorial limits specified in your policy. The coverage “floats” with the property.
Insuring Agreement
The part of an insurance policy that states the company’s agreement to protect you and your property from loss or damage.
Liability Coverage
Insurance covering injuries to another person or damage to another person’s property for which the insured is legally liable.
Limits
The maximum amount of benefits an insurance company agrees to pay in the event of a loss caused by an insured peril.
Market Value
Value of your property if it were placed on the market.
Peril
The cause of a loss, such as fire, theft, tornado and smoke.
Premium
The amount you pay for an insurance policy
Proof of Loss
A written statement, involving a claim, that the policyholder submits to the insurance company. The company uses this information to determine its liability under the policy.
Property Coverage
Insurance providing protection against the loss or damage to real and personal property caused by specified perils covered in your insurance policy or contract.
Replacement Cost
Replacement of property without depreciation.
Renewal
Continuation of a policy after its expiration date.
Renters Insurance
A form of insurance that covers a policyholder’s belongings against perils. It also provides personal liability coverage and additional living expenses. Possessions can be covered for their replacement cost or the actual cash value, which includes depreciation.
Replacement Cost
Pays the dollar amount needed to replace the structure or damaged personal property without deducting for depreciation but limited by the policy’s maximum dollar amount.
Residual Market
Insurers, such as assigned risk plans and the Texas FAIR Plan, that exist to provide coverage for those who cannot get it in the standard market.
Return Premium
The premium returned to an insured for canceling or amending a policy.
Rider
A written agreement attached to the policy expanding or limiting the benefits otherwise payable under the policy. Also called an “endorsement.”
Staff Adjuster
Employee of the insurance company’s claims department.
Surcharge
An extra charge added to your premium by an insurance company.
Third-Party Claim
A claim filed against another person’s insurance policy.
Underwriter
The person who reviews an application for insurance and decides if the applicant is acceptable and at what premium rate.
Underwriting
The process an insurance company uses to decide whether to accept or reject an application for a policy.
Unearned Premium
The amount of a pre-paid premium that has not yet been used to buy coverage
