Actual Cash Value: The replacement cost of property, minus depreciation.

Agent: An independent agent usually sells and services the policies of several insurance companies, while an exclusive agent represents only one company. Both are usually paid on commission. A direct writer is a company that sells directly through a salaried or commissioned employee to the consumer.

Appraisal: An evaluation to determine the insurable value of property or to determine the amount of a loss.

Bodily Injury: Protection against loss due to the policyholder's legal responsibility for damages because of bodily injury, sickness or death suffered by another person.

Claim: A demand to recover a loss protected by an insurance policy.

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.

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 an 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, applies to the property wherever it is located, within the limits stated in the contract.

Insured: A person or organization covered by an insurance policy, including the "named insured" and any other persons 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 for injuries to other people or damages to their property accidentally caused bu you, your family or your pets.

Limits: The maximum amount of insurance that will be paid for a covered loss.

Loss: The dollar amount of an insurance claim or the basis on which a claim is submitted.

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.

Policyholder: Someone who pays a premium to an insurance company in exchange for the protection from loss provided by an insurance policy.

Premium: The amount of money you pay to the insurance company in return for insurance protection.

Property Damage: Insurance that protects against the loss or damage to property caused by perils listed in the policy.

Renewal: The procedure whereby an insurance policy is extended for a specific term provided the policyholder pays the premium on time.

Replacement Cost Or Value: The amount it would cost to replace damaged property at today's prices, without a deduction for depreciation.

Rider: An amendment attached to an insurance policy to add to, or change the terms of the policy contract.

Risk: The chance of injury, damage or loss. Also refers to the insured or to property covered by the policy.

Umbrella Liability Insurance: 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.