Insurance Glossary — 75+ Terms Defined
Comprehensive insurance glossary with 75+ terms explained in plain English. Understand your coverage, policy documents, and insurance options with definitions from Prominent Insurance Services.
Key Insurance Terms
- Deductible
- The amount you pay out-of-pocket before your insurance coverage kicks in for a claim.
- Premium
- The amount you pay — monthly, quarterly, or annually — to keep your insurance policy in force.
- Liability
- Legal responsibility for damages or injuries you cause to another person or their property.
- Umbrella Policy
- A policy that provides extra liability coverage above and beyond the limits of your home, auto, or other policies.
- Actual Cash Value (ACV)
- The replacement cost of your property minus depreciation at the time of a loss.
- Replacement Cost Value (RCV)
- The cost to replace damaged property with a new item of similar kind and quality, without deducting for depreciation.
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