Actual Cash Value: The replacement value of property minus depreciation due to age and wear. This is what insurance companies use to determine the payout value to a customer.
Business Owner’s Policy: A standardized policy for small and medium sized businesses that combines several types of insurance coverage to cover standard business owner needs. These policies tend to include property, liability, and business interruption coverage.
Collision Coverage: Covers an automobile in the event that the vehicle is struck by another vehicle or object.
Collision Coverage Waiver: An agreement between a rental car company and customer that waive’s the renter’s responsibility for damage to the rental car in exchange for payment.
Comprehensive Coverage: Coverage for auto insurance that covers losses due to fire, theft, vandalism, hail, water damage and falling objects.
Comprehensive Personal Liability: Covers the insured from legal liability due to accidents.
Constructive Total Loss: When the insured item’s cost of repairs exceeds the actual cash value.
Deductible: The portion the insured person must pay towards their loss.
Independent Insurance Agent: An insurance agent or agency that works with multiple insurance providers and is free to offer insurance from a variety of companies to their customers.
Liability: This covers expenses due to injury or property loss that the insured person is responsible for.
Professional Liability Insurance: A type of specialty insurance that covers professionals in there line of work such as lawyers, architects, doctors, and more.
Renter’s Insurance: A comprehensive insurance policy covering personal possessions, loss of use and liability for damage or injury to others.
Replacement Cost: The value an insurance provider will pay for the replacement of covered items due to damage or other cover-able events.
SR-22: Proves financial responsibility that the driver is carrying at least state-minimum auto insurance coverage. This filing is submitted to the state to show that a high risk driver has current auto insurance. SR-22 filings are court ordered due to DWI, driver’s license suspension and other driving infractions and crimes.
Strict Liability: Liability that is assumed without negligence or fault. An example of this being used would be for a manufacturer of dangerous or defective products.
Totaled: When the damages to a vehicle will cost more to fix than the actual cash value. When covered by insurance, the insurance company will usually pay out the actual cash value and keep the salvage rights to the totaled vehicle.
Under-Insured Motorist Coverage: When a policy holder has under-insured motorist coverage, they are covered when an under-insured motorist hits their vehicle and the under-insured motorist is at fault.
Uninsured Motorist Coverage: Covers a policy holder in a hit and run accident when the other motorist does not have any auto insurance coverage.