Actual Cash Value

The cost of repairing or replacing damaged property with property of the same kind and quality, less depreciation (i.e., in the same physical condition as the original property prior to damage).


Additional Coverages

Extra coverage that can be purchased to provide protection above and beyond that provided in the homeowners policy (e.g., a higher amount of coverage against the theft of jewelry). When such additional coverage is purchased, it becomes an Endorsement or Rider to the original policy.


Additional Living Expense

ALE provides reimbursement for motel rooms, meals and other expenses while a house is being repaired or rebuilt.



Determine the insurer’s liability for loss when a claim is filed.



An insurance sales office.



A request made by an insured for payment of benefits.



Protection provided under an insurance contract.



A decrease in the value of property due to use, time and wear and tear.


 Dwelling Policy

Excludes liability coverage.



An add-on to an insurance policy that increases coverage.



Events, conditions or circumstances that are not being covered under an insurance policy.

 Insurance Fraud

Lying to receive payment of an insurance claim.



The party covered by an insurance policy.


Liability Insurance

Insurance that pays protects policyholders from bodily injury or property lawsuits.


Loss of Use

See Additional Living Expense


Market Value

The price a house would sell for under current market conditions.



An event or circumstance that causes loss.


Personal Liability

See Liability Insurance.



A contract between the insurance company and the policyholder that outlines which perils are and are not covered.



The amount of money a policyholder pays an insurance company for insurance coverage.


Property Coverages

Insurance that covers damage to a policyholder’s property.


Renters Insurance

Insurance for renters that covers personal property and liability.


Replacement Value

The cost of replacing property without deducting depreciation.



The chance of loss.



A person who reviews applications for insurance coverage and decides if the applicant will be insured and at what price.