Glossary

Actual cash value. A policy that pays damages equal to the replacement value of damaged property minus depreciation

Coverage. Synonym for insurance.

Employers' liability. Coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law.

Premium. The price of an insurance policy, typically charged annually or semiannually

Replacement cost. A policy that pays the amount needed to replace property without deducting for depreciation, but may be limited by the maximum amount on the declarations page.

Perils. The events that could cause damage to, or loss of, your property.

Rider An attachment to an insurance policy that alters the policy's coverage or terms.

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