Resources

When A

Loss Occurs

• Most importantly, ensure the safety of you and your family.
• Contact your insurance agent.
• Report a claim, providing as much detail as possible.  Include detailed contact information.
• Take photos/video of the damage if possible.
• Take reasonable steps to prevent further damage.
• Keep accurate records and documentation of any expenses incurred in relation to the loss.

Common

Insurance

Terms

The following are some common insurance terms you may encounter during your claim:

Actual cash value:  Actual cash value (ACV) is the dollar amount required to replace the damaged or stolen property, less depreciation, at the time the loss occurred.

Additional Living Expense coverage:  Also called loss of use coverage.  Many policies provide coverage for temporary additional expenses incurred due to the covered property not being livable as a result of a covered peril.

Declarations page:  A document that summarizes key details of an insurance policy.  Among other information, it includes the policy number, name(s) of the policyholder(s), effective dates, and coverage limits.

Deductible:  The amount for which an insured is responsible before insurance coverage applies.

Depreciation:  A reduction in the value of property over time due to wear and tear and/or obsolescence.

Dwelling coverage:  Coverage under the policy for the rebuilding or repair of the physical structure of the home when it is damaged by a covered hazard.

Endorsement:  A legally binding change to an insurance policy that adjusts coverage, terms, or conditions.

Liability coverage:  Provides coverage for when an insured is legally responsible for someone else’s damages.

Limit:  The most an insurance company will pay for covered damages.

Mortgagee:  A financial institution that lends money to borrowers, such as a bank providing a home loan.  Many insurance policies provide protection for the mortgagee if covered property subject to a loan (e.g., a dwelling) is damaged.

Named Insured(s):  The party or parties to whom the insurance policy is issued. 

Personal Property coverage:  Also called Contents coverage.  Provides coverage for damaged personal items—exampled include furniture and clothing.

Policy period:  The timeframe durance which an insurance policy is valid.   

Replacement cost:  Replacement cost (RC) is the cost of replacing or repairing property to its pre-loss condition.