Actual Cash Value – Also referred to as "ACV," actual cash value is the fair market value of property at the time of the loss.
Adjuster – A type of insurance professional that "adjusts" (estimates) insurance losses.
Claim – An insurance claim is the notification that an insured gives to the insurance company that a loss has occurred.
Denial – An insurance denial is the notification from an insurance company that the insured's claim has been refused.
Deductible – An insurance deductible is the amount of money that the insured is responsible for paying toward the claim. This amount has been pre-determined under the terms of the policy. For example, if you have a $500 deductive, you will pay the first $500 of the loss. The insurance company will pay the amount above $500 up to the policy's limits.
Depreciation – Property depreciates over time due to age or wear and tear. Depreciation is the decrease in value of property or personal belongings.
Endorsement – An insurance policy endorsement is a written change that either adds or removes coverage.
Exclusion – Insurance policies often contain exclusions which exclude specific items, damage types, or damage causes from coverage.
Insured – The policyholder.
Insurer – The insurance company.
Peril – Perils are causes of an insurance loss such as a storm, tornado, or fire. Some perils are covered while others may be specifically excluded from coverage.
Policy – An insurance policy is a written contract between an insurance company and the policyholder.
Policy Limit – Insurance policies come with policy limits which are the maximum amount that the insurance company will pay under the policy's terms.
Premium – An insurance premium is the regular, recurring payment for an insurance policy.
Proof of Claim – The proof of claim is written documentation that supports the scope or value of an insurance claim.
Proof of Loss – The proof of loss is a policyholder's sworn statement detailing the loss including information such as date, time, and cause of the loss, value of the loss, and others who have an interest in the property.
Rider – An insurance policy rider is a written change that either adds or removes coverage.
Statute of Limitations – The time period between the date of loss and the deadline for filing a lawsuit involving the claim.