Understanding Your Home Insurance Policy
Like every industry, insurance has its own set of jargon. When we’re talking about insurance all day every day, we often forget that not everyone knows these buzzwords like we do. Because of this, we’ve compiled a list of common home insurance terms that you should know but may not always immediately understand.
The monetary amount that the policyholder is responsible for paying before the company pays the balance on a claim.
Actual Cash Value (ACV)
The market value of your home or property before and after the damage occurs, or what it would cost to replace your possessions minus depreciation. This is in contract to Replacement Cost.
Replacement Cost (RC)
The cost to restore or place the damaged or destroyed property back to the condition it was in before the damage.
Scheduled Personal Property
Expensive items, such as jewelry or antiques, may not be fully covered under standard home insurance policies. You can pay an additional premium to have them covered as scheduled personal property so that the cost of replacing them due to a covered peril is included.
A written change that adds to, deletes or alters your policy. This can also be called an endorsement.
Loss of Use
A part of coverage within your homeowners insurance policy that provides reimbursement for living expenses when loss of property by a covered peril forces you to maintain a temporary residence elsewhere.