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Home Owners Insurance
Insurance Lingo- Homeowners Policy

Insurance Lingo- Homeowners Policy

1.Claim- Is what you file with the insurance company when your property is damaged from a covered loss.

2.Covered loss. When you file a claim, the claim will only be considered if you purchased coverage for the particular event- fire, water damage, theft, storm etc… Flood insurance has to be purchased separately. Flood damage/rising water is not covered in a homeowners or renters policy.

3.Contents- Your personal belongings that you purchased, clothes, furniture, books, bedding, food etc… ATV’s, motor bikes etc.are not covered items unless they are used to maintain the property.

4.Contents Inventory- Anytime you file a claim of your personal belongings, the insurance company will require an accurate inventory of the damaged items in order for you to collect $ for the damaged items claimed.

5.Declaration Page- (Dec Page). Shows your coverage limits, endorsements and deductibles.

6.Deductible- A $ amount listed on your Dec Page that will be deducted from the total amount of any claim. There is usually a fixed deductible for most policies but some policies have a higher wind/storm deductible.

7.Depreciation- All items claimed are usually depreciated because of age, wear and tear and the normal life expectancy of particular items.

8.ACV- Actual Cost Value. Once depreciation has been calculated, it reduces the amount of what it takes to actually replace the item. The insurance company only owes you the ACV until you actually replace the item. Once you provide documentation (receipt) that you actually replaced the damaged item, the insurance company will release the amount that was depreciated/held back.

9.RCV- Replacement Cost Value- Is the total amount of cost to replace any particular item of same, like and kind of quality & total costs combined not to exceed the policy limit coverage.