Glossary of Insurance and Claim Terms

This is the policyholder and anyone else who is covered under the terms of the policy.  This can be an individual, a family, or a business.     

This is the insurance company that issued the policy and provides coverage to the insured under the terms of the policy.  

This is short for Actual Cash Value.  While there are several different methods used to determine the actual cash value of damaged property, the most common is to determine the cost to replace the damaged property, less any applicable depreciation that may apply.  

As mentioned above under the definition of ACV, many policies require that payments for covered losses account for any depreciation that may apply.  This depreciation is typically based on several factors including age, condition, and the life expectancy of the property damaged.  For policies with "Replacement Cost Coverage", this depreciation is typically recoverable so long as several conditions are met. However, that is not always the case.  Refer to your specific policy for details. 

Shorthand for Replacement Cost Value.  This is the cost to replace damaged property under current market conditions without deduction of any depreciation.  

Acronym for Date Of Loss.  This is the date that the damage to the insured property occurred.  The date of loss is significant because only claims with a date of loss that falls within the policy period are covered.   

Otherwise known as Cause and Origin.  This is another critical bit of information that an insurance company will need in order to determine if the damages sustained to a property are covered under the terms of the policy.  Until an insurer has confirmed coverage for a loss, it is important to preserve the cause and origin, or the area where the cause and origin likely occurred, to the best of your ability.  

To protect damaged property from additional damage.  For example, putting a tarp over a hole in the roof caused by a fallen tree limb during a windstorm, or repairing a broken pipe that has caused water damage to property.  Mitigating the damages after a loss is always in your best interest and is usually a requirement of your insurance policy.