Get ahead of the curve in today’s insurance market by getting familiar with some insurance jargon. Demystifying insurance terms and conditions is just another step towards being a more informed insurance client!
Actual Cash Value (ACV)
The fair market value of your property before a claim or loss. Insurance carriers calculate this by determining how much it would cost to replace the item, minus depreciation.
Additional Living Expenses
This coverage is on your home policy and covers the cost of living expenses when you cannot live in your home or apartment after a claim or loss.
Declaration Page
This is the first page of your insurance documents, which features all the details of your policy such as premium, time the policy is in force, and coverages. Landlords, mortgage lenders, and auto lienholders will often ask for this document. Sometimes it’s called a Dec Page.
Dwelling Coverage
Known as Coverage A on your home insurance. This covers you for how much it would cost to rebuild your home from the ground up if you suffered a total loss.
Endorsement
An add-on to your policy that often add or exclude coverages. Common examples include extended dwelling coverage, sewer backup, or gap coverage for vehicles.
Exclusion
A type of loss or cause of loss that is specifically listed as not covered by your homeowner’s insurance policy. Examples include perils such as neglect, flooding, earth movement, or other scenarios that do not permit coverage.
Floater
Additional insurance to cover a possession wherever you take it, such as instruments, firearms, art, cameras, or various valuable collections.
Independent Agent
Also known as your trusted Cincinnatus Insurance advisors! Independent agents sell products across the insurance market from various carriers. Learn more about why that helps YOU by clicking here.
Insured
A fancy word for you, the person who owns or is covered by the insurance policy.
Liability Coverage
Coverage for bodily injury or property damage you have done to others.
Loss
Direct, accidental damage to an insured property or automobile, which then leads to filing a claim.
Medical Payments (auto insurance)
Coverage for medical expenses for you and others in your car, regardless of who is at fault.
Medical Payments (home insurance)
Coverage that may provide payment for medical expenses when an accident occurs on your property.
Named Insured
The person specifically identified on the insurance policy who is initiating the policy and can make changes to it.
Other Structures
Listed on a home policy as Coverage B. A structure that is on the property but not directly attached to the dwelling structure. Examples: a detached garage, fence, or shed.
Personal Property
“All other property not classified as real property.” Or as we like to tell clients: all of your personal belongings that would fall out of your house if we turned it upside down and shook it.
Scheduled Personal Property
Additional optional insurance for high-value appraised personal property that is added to a homeowners, condo or even renters policy. Examples: paintings, cameras, musical instruments, or jewelry.
Water Backup of Sewers or Drains Coverage
One of our favorite coverages to suggest to clients, especially if they have a finished basement or no basement at all. This is an optional coverage for loss due to water backup through a sewer or drain.