Homeowner Claims Glossary

The cost to replace an item with an item of like kind and quality less any applicable depreciation at the time of the loss

“Additional Living Expenses” – one example is the cost of temporary accommodations such as a hotel stay when your home is uninhabitable due to a covered cause of loss

An adjuster is the representative in our office who is assigned to process your claim. The role includes, but is not limited to, verifying coverage, investigating liability, and processing payments.

The dollar amount you choose to pay out of pocket when you purchase or update your policy. In other words, you agree to cover a specific amount of the damages when there is a covered loss and we agree to cover the remainder of the cost. For example, if your policy deductible is $500 and the repair cost of your home is $2,000, you agree to cover the first $500 and Electric Insurance agrees to cover the remaining $1,500.

The reduction in the value of an asset caused by the passage of time

The initial report provided to your insurance company following loss, theft, or damage of an insured asset 

The party(ies) covered by an insurance policy

In this context, an entity that is authorized to write property and/or casualty insurance under state laws

Coverage for the costs an insured incurs because the covered residence premises has either been damaged and is not habitable, or destroyed

The fair value or the price that could be derived from current sale of an asset

The individuals defined as the insured in the policy contract

Insurance for whose coverage applies only to causes of loss explicitly defined in the policy contract

An accident, including injurious exposure to conditions, during the policy period that results in bodily injury or property damage, neither of which is expected or intended by the insured

The defined period of time during which insurance coverage is in effect

Money charged for the insurance coverage that reflects the expectation of loss

The cost to replace an item with an item of like kind and quality at the time of the loss

The monetary gap between replacement cost and actual cash value (ACV); you can recover this gap by providing proof that shows the repair or replacement is complete or contracted

The amount of depreciation that is deemed ineligible for reimbursement under your insurance policy

Recovering damages from the at fault party

A person other than the insured or insurer who has allegedly incurred losses or is otherwise making a claim that they are entitled to receive payment due to a covered loss