Home Insurance Glossary

Your home insurance policy- translated.

Like most homeowners, your home is your greatest asset. That's why having a strong understanding of your homeowners insurance policy is so important. However, since home insurance policies are written by home insurance companies- customers often have a difficult time translating their policy. Use our home insurance glossary to search out terms commonly found in homeowners insurance policies and get clear, concise definitions written in language you can understand!

Actual Cash Value (ACV)

The value of your property at the time of a loss or damage. ACV may be determined as the replacement cost minus depreciation.

Cash Value

The amount of money which the policy owner will receive as a refund if the coverage is cancelled and the policy is returned to the company. Also known as cash surrender value.

Net Cash Value

The cash value amount available to a policy owner after adjustments have been made to the cash surrender value to account for policy loans and dividends.

DISCLAIMER: The information provided above is intended to be a guide to understanding common homeowners insurance terms. HomeInsurance.com does not intend this information to be official or legally binding. HomeInsurance.com uses this list as a basic guide to understanding these terms and should not be considered complete or definitive.