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Helpful Terms & Definitions

Actual Cash Value
The cost to replace an item, minus any depreciation, sometimes called “market value.”

All Perils (Open Perils Coverage)
This coverage is provided for all losses (such as fire, theft, windstorm or lightning), except those that are excluded.

Attached Garage
A garage that shares at least one common wall or breezeway, and a common roof with the residence that has no living space above it.

Built-In Garage
A garage that shares at least one common wall or breezeway, and that has a living space above it.

The portion of a covered loss that is the policyholder’s responsibility.

Detached Garage
A garage that is a separate building from the residence.

A residential building and everything attached to it, such as a garage or built-in appliances.

A written form attached to your insurance policy that adds or subtracts coverage. You may have to pay an extra premium for an endorsement. Your agent or broker should let you know if there is an additional cost.

An insurance policy you add to your homeowner policy. This is coverage for your personal property that moves from location to location. For example, when you are traveling, this would cover your cameras, luggage, etc.

It applies to specific personal property for specified limits and generally at additional cost. Typically, your standard homeowner policy only covers a specified dollar limit for personal property that you take with you. A floater extends this coverage.

A contract to transfer risk from individuals to an insurance company. In exchange for a premium, the insurance company agrees to pay for losses covered under the terms of the policy.

Liability Coverage
Coverage that pays for damage if you are legally liable for bodily injury to others or damage to someone’s property.

The cause of a loss, such as lightning, windstorm, hail, fire, smoke, an explosion, riot or civil commotion, aircraft, vehicles, vandalism and malicious mischief, theft, or falling objects.

The chance a loss will occur or the uncertainty a loss may occur.

Scheduled Personal Property
An endorsement to your homeowner insurance. It provides coverage for loss or damage to items such as jewelry, furs, coin collections, silverware, sports equipment, etc. It includes an itemized list of your property with detailed descriptions and appraised values.

The specific criteria each insurance company uses to decide if a risk qualifies for coverage.