Insurance Terms Glossary
Insurance language is complicated. To help guide you through your claim, our public adjusters have compiled a handy list of definitions for terms you may run across in the process.
An unexpected event, often with harmful consequences. (See also occurrence.)
Accident - Boiler and Machinery
Various definitions as spelled out in the four object definition forms of the Boiler & Machinery Policy.
The records of money owed to an individual or organization which, if lost, stolen, or destroyed, could prevent their collection; The value of these records can be insured under Inland Marine Accounts Receivable insurance.
Actual Cash Value
The value of property immediately before loss taking into account its "used" condition, wear & tear, etc.; usually considered the "depreciated value, although "market value" and obsolescence may sometimes also be taken into account.
Actual Loss Sustained Business Interruption Insurance
Form of coverage used in Boiler & Machinery Insurance that pays the amount of business income loss actually incurred following an insurance property loss. (In contrast to "Valued" coverage.)
The commonly used abbreviation for Actual Cash Value.
Agreed Amount Clause
Former name of Agreed Value Option. (see below for definition of Agreed Value Option).
Agreed Value Option
An optional clause for Property & Business Income policies that waives the Coinsurance Clause on a year by year basis based on the filling, and accepting by the insurer, of a statement of actual values on which the amount of insurance for the coming year is based; Failing to file a new statement within the required time results in reapplication of the Coinsurance clause until a new statement is filed and approved. (See Coinsurance.)
Former name of coverage that applies against all risks of loss not specifically excluded; The term "All-Risks" is no longer used as it seems to suggest (in the minds of insurers) that more coverage is being given than is intended.
Liability of an insured condominium owner, cooperative apartment tenant, or others for the cost of assessments laid on the individual owner or tenant to pay for costs or improvements for the common good; Insurance can be purchased to cover this exposure.
Another term for a Coinsurance Clause (See Coinsurance.)