Actual Cash Value - Actual Cash Value is replacement cost less depreciation. Actual Cash Value is also known as ?fair market? value.

Adjuster - An adjuster reviews and settles claims on behalf of the insurance company. The adjuster could be an employee of the insurance company or an independent contractor hired by the company.

Agent - An insurance agent represents only one company and may sell many of that company's products. He or she can provide information about the insurance products and rates for that one company only.

Appraisal - A valuation of property made for determining its insurable value or the amount of loss sustained.

Broker - An insurance broker sells insurance for more than one company.

Claim - The exercising of a policyholder's right under a policy to be paid by his or her insurance company for certain financial losses suffered. A claim can be any notification of a possible loss under an insurance policy, whether or not any payment follows.

Deductible - The portion of the loss covered by insurance that the policyholder must pay himself or herself; the amount appears on the policy. Example: If a policy has a $1,000 deductible, the policyholder would pay the first $1,000 of any repair bill and the insurance company would pay the balance up to the policy limits. Any loss that costs less than $1,000 would be the policyholder's own responsibility.

Depreciation - The decrease in the value of property over a period of time due to use, wear and tear, and obsolescence.

Dwelling Coverage - This applies to your home and "attached structures" such as a garage or carport.

Exclusions - Events or circumstances described in policies which, if they happen in a way that relates to the loss, result in there being no coverage.

Fraud (Insurance) - Any act or omission with a view to illegally obtaining an insurance benefit. In other words, any action allowing a claimant to walk away with money to which he or she is not entitled.
Insurance fraud includes a full range of fraudulent acts, including completely fabricating claims, inflating or padding genuine claims, making false statements on insurance applications, and internal fraud.

Grace Period - A period after the premium due date during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.
Guaranteed Replacement Cost Endorsement - Coverage that pays for replacement without reduction for depreciation . A guaranteed replacement cost endorsement covers any shortfall in the event that the replacement cost of a building has been underestimated.

Indemnify - To compensate the insured person for a loss, in whole or in part, by payment, repair, or replacement.

Insured - The person (or persons) whose risk of financial loss from an insured peril is protected by the policy. Sometimes called the "policyholder," "customer" or "assured."

Insurer - The insurance company. Sometimes called the "assurer."

Liability - This is a legally enforceable obligation. Liability insurance pays for the damages or losses suffered by others for which the insured person is legally responsible.

No-fault - This type of automobile insurance provides some compensation for personal injury and death arising out of a motor vehicle accident, with payments made regardless of whom caused the loss. However, it does matter who caused the accident; if found to be at fault, a driver may experience an increase in future premiums.

Policy Limit - The maximum amount an insurer will pay under a policy, either overall or under a particular coverage.

Premium - An insurance premium is the money the policyholder pays to the insurer for financial protection against specific risks for a specific time-span.

Quote - An estimate of the cost of insurance, based on information supplied to the insurance company.

Replacement Cost - The cost of replacing property without deduction for depreciation.

Rider - An amendment to an insurance policy. It is used to add or remove coverage.

Tort - A tort is a wrongful and harmful action addressable by some appropriate legal remedy.

Total Loss - A loss of sufficient size that it can be said there is nothing left of value. The complete destruction of the property.

Underwriter - An underwriter is an employee of an insurance company who looks at an insurance application and decides whether or not the insurance company can or should provide the applicant with insurance, based on the risk that person presents.