Property Insurance Glossary

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.


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