- Actual cash value (ACV)
- Replacement cost minus depreciation. An older item or roof pays less under ACV.
- Additional living expense (ALE)
- Covers extra costs like a rental and meals if you can't live at home after a covered loss. Also called loss of use.
- Adjuster
- The person who investigates a claim for the insurance company and determines what's owed under the policy.
- Agent
- A licensed person who sells and services insurance. An independent agent works with more than one insurance company.
- Binder
- Temporary written proof of coverage issued before the full policy is delivered.
- Bodily injury liability
- Pays for injuries you cause to other people, such as in an auto accident.
- Business owner's policy (BOP)
- A package of general liability and commercial property coverage for small businesses.
- Certificate of insurance
- A document that shows proof of a business's insurance coverage to a third party.
- Claim
- A request to the insurance company for payment under a policy after a loss.
- Collision
- Auto coverage for damage to your vehicle from hitting another vehicle or object.
- Comprehensive
- Auto coverage for non-collision damage like hail, theft, fire, glass and animal strikes.
- Declarations page
- The summary page of a policy listing who and what is covered, limits, deductibles and premium.
- Deductible
- The amount you pay toward a covered loss before the insurance company pays.
- Dwelling coverage
- Part of a home policy that covers the structure of the house.
- Endorsement
- A change or addition to a policy that adds, removes or modifies coverage. Also called a rider.
- Exclusion
- Something a policy specifically does not cover, like flood on a home policy.
- Extended replacement cost
- Adds a percentage above your dwelling limit if rebuilding costs more than expected.
- Farm liability
- Liability coverage for farming operations, including livestock and farm premises.
- General liability
- Business coverage for injuries and property damage to others caused by business operations.
- Inland marine
- Coverage for movable property like tools and equipment that travel to job sites.
- Lapse
- When a policy ends because the premium wasn't paid.
- Liability
- Legal responsibility for injuries or damage to others. Liability coverage pays on your behalf.
- Limit
- The maximum the insurance company will pay for a covered loss.
- Medical payments
- Pays medical bills for injured people regardless of fault, usually in smaller amounts.
- Named peril
- A policy that covers only the causes of loss listed in the policy.
- Open peril
- A policy that covers all causes of loss except those specifically excluded.
- Premium
- The amount you pay for an insurance policy.
- Replacement cost
- The cost to repair or replace property with new materials of like kind and quality, without depreciation.
- Rider
- See endorsement.
- Scheduled property
- Specific items, like jewelry or equipment, listed individually on a policy with their own limits.
- Umbrella policy
- Extra liability coverage above the limits of your home, auto or farm policies.
- Underwriting
- The process an insurance company uses to decide whether to insure you and at what price.
- Uninsured motorist
- Covers you if you're hit by a driver with no insurance or, with underinsured coverage, not enough.
- Wind/hail deductible
- A separate deductible for wind and hail losses, often a percentage of the dwelling limit.
- Workers' compensation
- Covers medical bills and lost wages for employees hurt on the job.
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