Different Insurance Terms, What are they?

Actual Cash Value

In many states, this means that, in the event of a covered loss, you'll be paid the current replacement cost of what you lost, minus depreciation. (This generally includes the estimated wear and tear on the item damaged or the loss in value of that item because of aging and use.) The total amount you'd be paid would be subject to the terms of your particular policy, including applicable deductible and coverage limits.

Additional Living Expenses Coverage

With this coverage, the company will pay the reasonable increase in living expenses necessary to maintain your normal standard of living when a direct physical loss we cover makes your residence premises uninhabitable. This may include payments for the additional costs of a place to stay, food and other increased living expenses.

Deductible
The portion of a covered loss that you agree to pay before the insurance company becomes responsible for payment under the policy. A larger deductible usually means a lower premium. For example, if the covered claim is $1,000 and your deductible is $250, you pay $250 and your insurance company will pay $750.

Family Liability Protection
Provides protection for insured persons who become legally obligated to pay for covered accidental bodily injury or property damage to others. This protection does not cover auto liability claims.

 For more information on this topic read the Allstate Insurance website on Insurance Terms.

 

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