A

• Actual Cash Value (ACV): The value of your property at the time of loss or damage, calculated as the replacement cost minus depreciation.

• Additional Living Expenses (ALE): Coverage that reimburses you for temporary living costs if your home is uninhabitable due to a covered loss.

• Adjuster: An insurance professional who investigates and evaluates insurance claims to determine the insurer's liability.

• Agent: A licensed individual who sells and services insurance policies for an insurer.

B

• Binder: A temporary agreement issued by an insurer to provide coverage until a formal policy is issued.

• Building Coverage: Protection for the physical structure of your home, including walls, roof, and foundation.

C

• Casualty Insurance: Coverage that protects against legal liability for injuries or damage to other people or their property.

• Claim: A request made by a policyholder to an insurance company for payment of a covered loss.

• Coverage Limit: The maximum amount an insurance company will pay for a covered loss.

D

• Deductible: The amount you must pay out-of-pocket before your insurance coverage kicks in.

• Depreciation: The reduction in the value of property due to age, use, or wear and tear.

• Dwelling Policy: A type of insurance that covers physical structures but may exclude personal property or liability.

E

• Endorsement: A written modification to an insurance policy that changes or adds coverage.

• Exclusions: Specific situations or types of damage not covered by an insurance policy.

F

• Flood Insurance: Coverage for damage to your home and belongings caused by flooding, typically not included in standard homeowners policies.

• Forced-Place Insurance: Coverage purchased by a lender if a homeowner fails to maintain required insurance.

H

• Hazard Insurance: Protection for your home and belongings against specific risks like fire, theft, or storms. Often part of a standard homeowners policy.

• Homeowners Insurance: A comprehensive policy that covers your home, belongings, liability, and additional living expenses.

L

• Liability Coverage: Protection against legal responsibility for bodily injury or property damage caused by you or your family.

• Loss of Use: Coverage for additional costs incurred when your home is uninhabitable after a covered loss.

P

• Personal Property Coverage: Protection for belongings inside your home, such as furniture, clothing, and electronics.

• Policyholder: The individual or entity that owns the insurance policy.

• Premium: The amount you pay for insurance coverage, typically monthly or annually.

R

• Replacement Cost Value (RCV): The cost to repair or replace damaged property without deducting depreciation.

• Rider: An add-on to your insurance policy that provides additional coverage for specific items or situations.

S

• Schedule: A list of specific items covered under a policy, often with separate coverage limits.

• Settlement: The amount paid by an insurer for a covered claim.

T

• Term: The length of time an insurance policy is active, typically six months or one year.

• Third-Party Coverage: Insurance that protects against claims made by someone other than the policyholder.

U

• Underwriting: The process by which insurers assess risk and determine premiums for coverage.

• Uninsured/Underinsured Motorist Coverage: Protection if you’re involved in an accident with a driver who has insufficient or no insurance.

W

• Windstorm Coverage: Protection against damage caused by high winds, often required in areas prone to hurricanes or tornadoes.

• Write-Your-Own (WYO) Program: A program allowing private insurance companies to write and service flood insurance policies backed by the National Flood Insurance Program (NFIP).

This glossary can help customers understand key insurance terms and make informed decisions about their coverage options. Would you like me to add any additional terms or specific details?