Actual
Cash Value - The cost to replacement an item of property at the
time of loss, less an allowance for depreciation. |
Additional
Living Expense - A Coverage designed to pay for additional living expenses made
necessary by the loss of your dwelling. |
Aggregate
Limit - This is a policy limit found in liability policies which limits coverage to a specified dollar amount
for all losses during the policy period. For example, if your liability policy
had an aggregate limit of $1,000,000 all of your claims added together could not exceed $1,000,000. |
All Risk -
This indicates your property is covered against all perils except those specifically excluded in your policy. |
Appurtenant Structures -
This is a structure (building, fence) that you own that is associated with your insured property, such as a storage
building that is not attached to your house. |
Binder -
An acknowledgement (or receipt) you usually receive from your agent that your insurance is in force. Binders do not apply
to life or health insurance. |
Bodily
Injury - Injury, sickness, disease or death. |
Broker -
An independent agent who represents the insurance buyer rather than the insurance company. |
Burglary -
The unlawful taking of property by forced entry. There must be evidence of forced entry or exit. |
Coinsurance -
This clause requires you to pay part of the loss if the coverage provided under the policy limits is less than a specified percentage
of the property's value at the time of loss. For homeowner policies, the specified percentage is usually 80%. |
Conditions -
This part of your policy explains rights and responsibilities of both you and the insurance company. |
Consideration -
Something of value given in exchange for a promise of performance. Your insurance premium is the consideration that makes your
insurance policy a legal document. |
