Act of God or Act of Nature:  Natural occurrence that could not have been prevented. Example: lightning, tornadoes, hurricane.

Actual Cash Value (ACV):  The value of your property after deducting for age, wear, and condition. It’s what something is worth today, not what it would cost to replace brand new.

Additional Living Expense:  Cost incurred when loss requires you to live outside of your home while repairs are made. An insurer will pay any reasonable increase in living expenses, including moving expenses, motel, restaurant so that your household can maintain its normal standard of living while repairs are being made to your damaged home.

Appraisal:  Appraisal is a separate evaluation between two appraisers in which the two sides try to come to an agreement on the differences. If they cannot come to an agreement, a neutral third party umpire will determine the final ruling.

Builders Risk Insurance:  A variation of property coverage specifically applicable to construction projects; commonly written in an amount to cover the value of the structure when completed. 

Business Income Coverage:  Insurance protecting the income derived from an insured's business activities following a covered peril. Coverage includes reasonable extra expenses the insured incurs to expedite return to normal business operations.

Business Personal Property:  A term relating to the "contents" of the business, including furniture, machinery and equipment as well as stock, all other property owned by the insured, and building improvements.

Binder:  Temporary or preliminary coverage until a policy can be written or delivered.

Cancellation:  Insurance carrier or insured stops coverage prior to the policy’s normal expiration date.

Claim:  A request for reimbursement for a loss covered under the policy.

Civil Authority:  An insurance policy provision that will typically extend coverage for Business Interruption and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property

Company Adjuster:  An adjuster who is employed and works solely for an insurance company or self-insured entity.

Conditions:  The part of the insurance policy that explains the obligations of the insured and the insurance company under the property, for property and liability. It explains your duties in the event of a loss and how the company will settle.

Covered Loss:  An accident, including accidental damage by forces of nature which brings a contract of insurance into play.

Coverage: The scope of protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, living and death benefits are listed.

Debris Removal:  A consequential coverage, which pays for, the insured's expenses to remove debris of covered property caused by a Covered Cause of loss.

Declarations Page:  Commonly the first page of your policy containing the name of the insured, the address, and the dollar amount of coverage provided, a description of the property, and the premium cost.

Deductible:  The amount of the loss you are required to pay out-of-pocket per claim or accident.

Depreciation:  The decrease in property value since the time it was built due to age or normal wear and tear.