Actual Cash Value – The amount a damaged or stolen item was actually worth at the time of the loss. The formula for Actual Cash Value (ACV) is replacement cost of the item minus depreciation.
Appraisal – The valuation of your property determined by an authorized expert.
Binder: A temporary insurance contract that provides proof of coverage until you receive your policy.
Deductible - The part of a loss that you are responsible for paying according to the terms of your policy.
Depreciation – A decrease or loss in value over time, due to age, usage and deterioration.
Exclusion - Specific instances or circumstances not covered.
Financial Responsibility (FR): Liability insurance or a bond that promises to pay other people when you are negligent. You must show FR proof if you're stopped by a police officer or have an accident.
Liability Insurance: Insurance that pays another person for injuries to them or damage to their property.
Peril – A covered event (fire, vandalism, etc.) causing damage to your property.
Replacement Cost – A determination of the cost to replace contents, rebuild your home or repair damages with materials of like kind and quality at today’s prices, without subtracting for depreciation or obsolence.
