Home insurance glossary
The key terms of home insurance and belongings inventory, explained simply.
- Actual cash valueThe value of an item after depreciation is subtracted.
- ClaimA request for compensation sent to your insurer after a loss.
- DeductibleThe amount you pay yourself on each claim.
- DepreciationThe loss of an item's value over time and with wear.
- Home insurance policyThe contract that defines the coverage of your home and its contents.
- Home inventoryA documented list of your belongings, with their value and proof they existed.
- Proof of prior existenceEvidence that you owned an item before a loss.
- Replacement valueThe cost to buy an equivalent new item today.
- RiderAn addition to a policy that changes or increases a coverage.
- Sub-limitA payout cap specific to a category of belongings.