Actual Cash Value (ACV)

For purposes of Homeowners insurance, actual cash value means fair market value. The fair market value of an item is the dollar amount that a knowledgeable buyer is willing to pay and a knowledgeable seller is willing to accept.

Coverage A

Coverage for the dwelling and attached structures on the residence premises.

Coverage B

Coverage for other structures on the residence premises that are detached from the dwelling. Common examples are a garage not attached to the house, fences, walkways, or a pool. The amount of insurance that applies to Coverage B is automatically set at 10 percent of the amount of insurance for Coverage A.

Coverage C

Coverage for your home contents or personal property owned or used by you, the insured. The amount of insurance is usually 50% of Coverage A although Century-National and some other insurers may provide 70% of Coverage A.

Coverage D

Coverage for loss of use of your home while repairs are being made. Typically includes cost for such items as motel rooms and other expenses, which is your necessary increase in living expenses so that the household can maintain its normal standard of living during this time. This coverage is triggered when there is a covered loss causing the home to be uninhabitable. Amount of insurance is usually 20% of Coverage A although Century-National and some other insurers may provide 40% of Coverage A.

Coverage E

Liability coverage to the insured if a claim is made or suit is brought against an insured because of bodily injury or property damage caused by a covered occurrence.

Coverage F

Coverage for necessary medical expenses up to $1,000 per person for injuries to others while on your property or who are injured through your personal activities.


The first page of your insurance policy that contains the full legal name of your insurance company, your name and address, the policy number, effective and expiration dates, premium payable, the limits of insurance, covered property, deductibles, and any applicable lienholder information.


The amount of loss that you are responsible to pay up-front before covered benefits from the insurance company are payable.

A written agreement that changes the terms of an insurance policy by adding or subtracting coverage.


The price of insurance paid to the insurance company for a policy.


An estimate of the cost of insurance based on information supplied to the agent, broker, or insurance company.

Replacement Cost

The amount that it costs to replace lost or damaged property with new property of like kind quality in the local market.

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