The first time you attempt to read your homeowner's insurance policy,
you might feel like you're reading a manual written in a foreign language. Don't worry: you can learn basic insurance terms to better understand your policy. Learn this glossary of terms:
Actual Cash Value (ACV): The ACV is the amount you need to repair or replace damaged portions of your house after an event.
Claim: A request for reimbursement. The claim must be covered in the policy in order to be paid.
Deductible: The specific amount of people noted in the policy that states how much money you will pay out of pocket.
Depreciation: The decrease in value of a home structure and personal property due to age and wear.
Exclusion: An event or condition-such as flood or wind damage-not covered through the policy.
Loss of Use: Coverage for additional expenses outside the policy-such as hotel rooms and food-while a home is being repaired.