ACV Policy – An ACV policy is an insurance policy that bases replacement costs on the ACV, or "Actual Cash Value" of the lost or damage items at the time of loss. Actual cash value means the value the item is currently worth – not its original purchase price or its replacement cost.
Denial – An insurance claim that has been denied by the insurance company.
Deductible – The amount of money that the insured pays toward a given claim. For instance, a policy with a $250 deductible requires the insured to pay $250 toward the claim's total value.
Depreciation – A loss of value in property due to age or wear and tear.
Endorsement – A change in insurance coverage either adding or removing coverage from a policy.
Exclusion – A specifically excluded item in an insurance policy is known as an exclusion.
Insurance Adjuster – An insurance adjuster "adjusts" insurance losses for either the insurance company or the insured.
Insured – The person or entity covered by an insurance policy.
Insurer – The insurance company that has issued an insurance policy.
Peril – A cause of an insurance loss. For example, tornados, earthquakes, wildfires, and hurricanes are all examples of perils and are all responsible for causing massive insurance losses each year.
Policy – A contract for insurance between a policyholder and an insurance company.
Policy Limit – A limit in an insurance policy that limits the maximum amount an insurance company will pay for a given loss.
Premium – The cost for insurance coverage typically billed monthly or yearly.
Rider – A change in insurance coverage either adding or removing coverage from a policy.
Smoke Damage Claim – A type of insurance claim where the insured's property has been damaged by smoke.
Statute of Limitations – The period of time spanning from the loss date to the final deadline that a lawsuit related to the claim may be filed.