Common Insurance Terms:
DEDUCTIBLE – When you have a claim, this is the amount that you pay out of pocket before your insurance kicks in.
LIABILITY COVERAGE – This coverage is needed for protecting yourself from personal liability lawsuits – usually due to negligence.
PERSONAL PROPERTY OR CONTENTS – Belongings such as furniture, clothing and electronics are covered here. It’s important to take inventory to determine what it would cost to replace these belongings should you have a claim.
REPLACEMENT COST – When you have a claim, the settlement for your home and personal property lost would be based on the cost to replace the property.
ACTUAL CASH VALUE – When you have a claim, the settlement for your home and personal property lost would be based on the current cash value, or depreciated value.