Purchasing Home Insurance is always a smart move. However, technical jargon can be obscure, making this topic seem complicated to the uninitiated.
This glossary will provide you with the basic terms you need to get your bearings so you can explore with confidence in the world of Home Insurance.
A note about how to use the glossary: Words in italics have their own entries, so it’s important to check them when you come across them while you read a definition.
Actual Cash Value (ACV)
This is the cost of repairing or replacing property after a loss, minus depreciation. This value is calculated by taking how much it would cost to buy your property today and subtracting depreciation considering factors such as wear and tear. This calculation allows the insurance company to pay you the exact amount your property was worth when the loss occurred.
Additional Living Expenses (ALE)
This coverage pays for your living expenses (hotel, meals) in case you have to relocate due to a covered loss.
This person represents the insurance company and investigates your claim. After looking into the matter, they’ll help determine the amount you should receive as compensation.
A claim is the request you make to the insurance company to compensate you after a loss. If the company validates the claim with the help of their adjuster, you’ll receive a payment.
This term is widely used, but in home insurance it refers to the part of a policy that describes the insured property, states your name, address, the amount of the premium and the period during which the policy is in force. This section is colloquially known as the “dec page”.
This is a decrease in the value of your property over time due to damage, wear and tear or becoming obsolete. This factor is important to determine your property’s Actual Cash Value (ACV).
This part of your home insurance helps you pay for damages or injuries that occur on your property. For example, this may be useful in case someone slips on your floor.
Any damage to your property that the insurance company agrees to cover.
This type of insurance provides coverage for those renting the place where they live. Renters insurance usually provides coverage for your belongings, and it may also cover certain lawsuits against you.
This guide has provided you with the basic terms to understand the world of Home Insurance. However, it’s important to contact an expert to help you go beyond the elemental insurance concepts.
At La Popular Insurance we offer auto, home, commercial, health and life insurance. With 26 years of experience, we offer extremely qualified assistance at an affordable price. Contact us today by email or telephone ( 323-566-5063 , 562-928-1960, 323-773-9793 ) to discover more about our wide range of services.