Renters Insurance Glossary
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- ACTUAL CASH VALUE
- The cost of your property, minus depreciation.
- APPRAISAL
- An evaluation to determine the insurable value of property or to determine the amount of
a loss.
- CLAIM
- A demand to recover for a loss covered by an insurance policy.
- CONDITIONS
- The provisions of an insurance policy stating your rights and duties and those of the
insurance company.
- COVERAGE
- A synonym for insurance indicating how much protection the insurance provides. This may
mean either the dollar amount purchased or the type of loss covered.
- DEDUCTIBLE
- The amount of money the policyholder agrees to pay toward the total amount of an insured
loss before the insurance company pays. In some instances, the loss may exceed limits and
the policy holder would have to pay deductible, plus the excess.
- DEPRECIATION
- The decrease in the value of property due to wear and tear, and age.
- ENDORSEMENT
- An amendment attached to an insurance policy to add to or change the terms of the policy
contract.
- EXCLUSION
- An event or loss that your insurance policy does not cover.
- FLOATER
- An insurance policy, separate from the basic homeowners or renters policy, which covers
specific items of personal property. The coverage "floats" with the property
— that is, it applies to the property wherever it is located, within the limits
stated in the contract.
- HOMEOWNERS POLICY
- A package of insurance coverages, providing homeowners a broad range of personal
property, dwelling and liability protection.
- HOUSEHOLD GOODS POLICY
- Insurance coverage for personal property; excludes liability coverage.
- INSURED
- A person or organization covered by an insurance policy, including the "named
insured" and any other parties for whom protection is provided under the policy
terms.
- INSURER
- The insurance company providing the coverage.
- LIABILITY
- Any legally enforceable obligation.
- LIABILITY INSURANCE
- Insurance that pays when you are legally responsible for an accident in which you have
injured someone or damaged their property.
- LIMITS
- The maximum amount of insurance that will be paid for a covered loss.
- MEDICAL PAYMENTS INSURANCE
- A coverage to compensate people who sustain an injury while on your property or whom you
injure accidentally. This coverage excludes those who live in your house.
- NAMED PERILS
- Perils specified in a policy as those against which the policy insures you.
- PERIL
- The cause of a loss insured against in a policy.
- POLICY
- A legal contract that sets forth the rights and obligations of both the policyholder and
the insurance company.
- PREMIUM
- The amount of money you pay to the insurance company in return for insurance protection.
- RENTERS POLICY
- A homeowners policy adapted to the needs of people who rent. It usually provides
protection for both your personal property and/or personal liability. Also called a
tenants policy.
- REPLACEMENT COST
- The amount it would cost to replace damaged property at today’s prices, without a
deduction for depreciation.
- RISK
- The chance of injury, damage or loss. Also used
to refer to the insured or to property covered
by a policy.
- UMBRELLA LIABILITY
- A policy that insures losses in excess of amounts covered by other liability insurance
policies; also protects the insured in some situations not covered by the basic liability
policies.
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Updated Friday, July 23, 2004
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| © The USAA Educational Foundation, 2000 -
All rights reserved.
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