Insurance words you NEED to know:
Actual Cash Value
The current value of property measured in cash, arrived at by taking the replacement cost and deducting for depreciation brought about by physical wear and tear, age and other factors.
A written form attached to a policy that alters the policy’s coverage, terms or conditions.
A policy or endorsement that applies to moveable property whatever its location. The coverage “floats” or moves with the property.
Guaranteed Replacement Cost
Insurance providing for payment of the cost of replacing the damaged property without deduction for depreciation and without a dollar limit.
Inflation Guard Clause
Provision in a policy or endorsement that automatically adjusts the dwelling limit at policy renewal time to reflect current construction costs in your area.
Replacement Cost Dwelling Insurance
Insurance providing that the policyholder will be paid the cost of replacing the damaged property without deduction for depreciation, but limited by the dollar amount displayed under Section 1, Coverage, A. Dwelling on the Declarations Page of the policy.
Replacement Cost Contents Insurance
Insurance that pays the dollar amount needed to replace damaged personal property with that of similar kind and quality without deducting for depreciation.