Dictionary of Helpful Terms
Actual Cash ValueCoverage for your household contents and personal possessions is normally offered on an actual cash value basis. In other words, instead of being paid the replacement cost of an item, a deduction may be taken for depreciation due to normal use or wear and tear.
Additions and AlterationsBe sure to tell your insurance agent about any significant improvements to your home, for example a new family room or a remodeled kitchen, as you may want to check that such improvements are adequately covered within the dwelling limit of your policy. Another example could be your new detached garage, which could exceed the coverage that applies collectively to your detached structures. Congratulations on your home improvement, but be sure to ask whether you need to increase your coverage too.
Air ConditionersDo you have "built-in" air conditioning or portable units? Damage to your built-in air conditioning system may be insured within your dwelling coverage limit. However, damage to your portable air conditioning units may be covered within your personal property coverage limit. Whether you have built-in air conditioning or portable, coverage is subject to the type of loss suffered.
AntiquesAntiques may fall under your personal property coverage limit and are subject to the type of loss.If you own items of particular value, ask your agent about additional or special coverage.
AppliancesAppliances which are "built-in", for example, your oven and dishwasher, are considered part of your home, and may therefore be covered within your dwelling coverage limit. However, removable appliances, such as your refrigerator, washer and dryer, are considered household contents and may be insured against damage within your personal property coverage limit. Whether a built-in appliance or a removable one, coverage is subject to the type of loss suffered.
ArtworksObjects of fine art, including paintings, drawings, glass, sculptures, may be insured under your personal property coverage limit and are subject to the type of loss. If you own items of particular value, ask your agent about additional or special coverage.