Property Insurance Glossary

1. Actual Cash Value (ACV): The value of your property, based on the current cost to replace it minus depreciation.
   
   
2. Adjuster: A person who investigates and settles insurance claims. Adjusters can work independently or for an insurance company.
   
   
3. Appraisal: A professional assessment of the value of property, often used to determine the amount of coverage required.
   
   
4. Beneficiary: The individual or entity named in a policy to receive the insurance benefits.
   
   
5. Binder: A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it’s not possible to issue or endorse the policy immediately.
   
   
6. Claim: A request to an insurance company for financial compensation for a covered loss or policy event.
   
   
7. Coverage: The amount and type of protection provided by an insurance policy.
   
   
8. Deductible: The amount the insured must pay out-of-pocket before the insurance company pays a claim.
   
   
9. Depreciation: The decrease in home or property value due to wear and tear or age.
   
   
10. Endorsement (or Rider): A written change or addition to a policy that reflects alterations in coverage.
    
    
11. Exclusion: Specific conditions or circumstances listed in your policy describing when benefits won’t be provided.
    
    
12. Floater (or Rider): Additional coverage for items not included or fully covered by the standard policy, such as valuable jewelry.
    
    
13. Liability Coverage: Insurance that provides protection from claims arising from injuries or damage to other people or property.
    
    
14. Loss: The amount an insurance company pays on a claim.
    
    
15. Peril: A specific risk or reason for loss covered by an insurance policy, such as fire, windstorm, or theft.
    
    
16. Premium: The amount of money an insurer charges to provide the coverage described in the policy.
    
    
17. Public Adjuster: An adjuster that represents the policyholder in appraising and negotiating a claimant’s insurance claim.
    
    
18. Replacement Cost: The cost of replacing lost or damaged property without considering deductions for depreciation, but limited by the maximum dollar amount shown on the declarations page of the policy.
    
    
19. Underwriter: A professional who evaluates and determines the terms of coverage based on the risk profile of an individual, group, or company.
    
    
20. Underwriting: The process of evaluating the risk and exposures of potential clients.
    
    
21. Wear and Tear: Damage that naturally and inevitably occurs as a result of aging or long-term use.
    
    

This is a basic glossary and might not encompass all property insurance terms. Always refer to your policy or speak with your insurance agent for explanations specific to your coverage.