Homeowners Insurance Glossary

Actual Cash Value (ACV): The actual market value of property.

Bodily Injury: Bodily harm, sickness, disease, or death.

Deductible: The dollar amount an insured must pay within the limits of the policy.

First Party: The insured is the first party in the insurance policy.

Legal Liability: A legally enforceable obligation of one to pay damages to another.

Limit of Liability: The maximum amount an insurance company will pay for a covered loss.

Medical Payments to Others: Covers necessary medical expenses of others (not homeowner or occupants) as a result of injury on your premises or causes by the homeowner/occupants actions.

Named Perils: Those exposures listed in the policy. Insurance will pay losses caused by only those perils named in the policy.

Occurrence: An accident that causes bodily injury or property damage

Policy Period: The period of time that the policy is in effect.

Premises Liability: Damage or injury to a third party as a result of ownership, occupancy or use of property by the insured.

Property Damage: Physical injury to, destruction of, or loss of use of any tangible property.

Schedule: A list of items the insured wants covered for specific limits. These items are described in the policy.

Third Party: Anyone who is not a party in the insurance contract.