Glossary

Coverage for all physical loss. Only items specifically excluded in the policy are excepted.

Unpreventable events such as floods, earthquakes, lightning, or other natural causes.

The value of your personal items when depreciation is deducted from their full cost. This is a common settlement option in most policies and is typically what the insurer will attempt to settle for. For example, if you owned a $500 couch for 3 years, before it is destroyed in a residential fire, the insurer would likely offer you around 50% of the value of the couch ($250) due to the effect of three years’ worth of wear-and-tear.

A policy that pays out the full insured value in the event of a total loss rather than the stated amount.

A survey conducted to determine the amount of damage, costs of repairs, and whether the loss qualifies as a total or complete loss.