| 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.
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