Confused about your coverage? Get clarity with this glossary of insurance terminology you should know.
Insurance can feel complicated, but at Mike Leonard Insurance Agency, we don’t believe it should stay that way! We want to help you make an educated decision about your insurance coverage so you can get great protection, so we’ve put together this glossary of common insurance terminology.
Actual Cash Value: If your policy includes actual cash value (or ACV) coverage, you’ll be reimbursed for that item’s value at the time of the loss. That means the check you’ll get for that TV you bought in 2000 probably won’t cover the cost of buying a new TV today.
Comprehensive Coverage: No, this isn’t just great overarching protection. Comprehensive coverage is actually protection for your vehicle for non-driving related incidents, like theft, vandalism, or storm damage.
Indemnification: When you get reimbursed for a loss, you’re indemnified.
Ordinance or Law Coverage: This part of your homeowners insurance will help cover the cost of repairing or rebuilding your home in compliance with new ordinances or laws.
Original Equipment Manufacturer: An OEM endorsement added to your auto insurance policy will pay for you to repair your car with parts that come straight from the manufacturer, instead of aftermarket parts.
Replacement Cost: This coverage will pay to replace your destroyed possession new today. So you can probably buy a new TV with the check you’ll get when your TV from 2000 is ruined (just bear in mind it will have to be a similar TV – you can’t upgrade to a giant plasma screen if the ruined TV was a 32” model).
This glossary will help you better understand your coverage, but you still may have other questions. To get them answered, contact Mike Leonard Insurance Agency. As your North Texas insurance experts, we can help guide you towards the right auto insurance and homeowners insurance policies from our carriers Kemper, MetLife, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.