Renters Insurance: Terms and Glossary | MyMoneyMyQuotes

1. Renters Insurance: Terms and Glossary some of the common & important terms to know Presented by: mymoneymyquotes.com call: (857) 284-8820

2. Familiarizing yourself with the common insurance industry terms for renters insurance is very important so you can understand your coverage and at the same time better equipped to negotiate for the best price on your renters insurance quote or policy.

3. Here are some of the common and important terms to know…

4. Actual Cash Value (ACV) Current cash value of the property. This is calculated by reducing depreciation from the replacement cost.

5. Additional Living Expenses (ALE) This coverage usually pays for hotel accommodation, meals, and other temporary rentals or living expenses while the rental home is being repaired.

6. Annual Limit A maximum cap on the amount your insurance company will pay out to you in any calendar year.

7. Appraisal An appraisal is an unbiased professional evaluation to determine the insurable value of property or amount of a loss.

8. Claim A formal request made by a policyholder to an insurance company to recover for damage or loss covered through the policy coverages.

9. Coverage Insurance coverage basically represents specifically, how much protection your insurance policy provides. Usually, there are several different types of coverages listed in an insurance policy.

10. Deductible Deductible is the amount of money the policyholder agrees to pay in an insurance claim before the insurance company starts paying based on the insurance coverages.

11. Depreciation A reduction in the value of property due to time, wear and tear.

12. Effective Date The effective date for renters insurance coverage or policy is the date when your coverage or policy officially becomes active. It is this date when a policyholder can start receiving services and your insurance company will pay out the benefits.

13. Endorsement An insurance amendment to a renters insurance policy may be used to change the terms of the policy by making additions, deletions, exclusions or otherwise alter any coverages.

14. Exclusion An exclusion in a policy narrows the scope of coverages provided by the insurance company. It is a means or a policy provision that eliminates or reduces coverage for some of the events or certain types of risks.

15. Grace Period An insurance grace period in a renters insurance is a specific amount of time during which policyholder can pay off an overdue balance without coverage lapse.

16. Liability Coverage Liability coverage on a renters Insurance policy covers for bodily injury and property damage.

17. Limit of Liability It refers to the maximum amount of money your insurance company is on the hook for if there is an event of damage or loss.

18. Limits A limit is a maximum amount your insurance company will pay for a claim filed against a covered loss as defined in your renters insurance policy.

19. Peril A peril is a specific cause for a loss or damage. Among many others, usual perils covered by renters insurance include burglary, fire, vandalism, falling objects, water-related damage and electrical surge damage.

20. Qualifying Event An event that triggers your renters insurance coverage to become active. For example, a fire, water leak or theft.

21. Rider Endorsement A rider (also referred to as endorsement) allows a renters insurance holder to raise the claim limit of a specific category, such as jewelry.

22. Total Loss A loss so large that the property or possession is considered to be of no remaining value.

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