Useful Insurance Terms to Know
When we talk about insurance all day every day, it’s easy to start talking in acronyms and insurance jargon. Sometimes, we forget that not everyone understands all the terms we use day-to-day. To help you better understand your homeowners insurance policy, check out these terms with explanations to help make sense of the words.
Additional Living Expenses (ALE)
If your home is damaged after a covered peril and you need to live elsewhere while it is being repaired, your policy will help cover the costs. This can include hotel room bills, restaurant meals, and transportation costs.
Actual Cash Value (ACV)
The market value of your home or property before and after the damage occurs, or what it would cost to replace your possessions minus depreciation. This is in contract to Replacement Cost.
Replacement Cost (RC)
The cost to restore or place the damaged or destroyed property back to the condition it was in before the damage.
This is the coverage that protects your home from damage or destruction from any particular hazards your policy covers, such as tornados, hail, fire, and theft.
Scheduled Personal Property
Expensive items, such as jewelry or antiques, may not be fully covered under standard home insurance policies. You can pay an additional premium to have them covered as scheduled personal property so that the cost of replacing them due to a covered peril is included.
A written change that adds to, deletes or alters your policy. This can also be called an endorsement.
Loss of Use
A part of coverage within your homeowners insurance policy that provides reimbursement for living expenses when loss of property by a covered peril forces you to maintain a temporary residence elsewhere.
The monetary amount that the policyholder is responsible for paying before the company pays the balance on a claim.
Are you ready to secure the right homeowners insurance policy? Talk to the team at Lofgren Agency, serving Hudson and surrounding cities in New York. We can help you understand your policy from the inside out.