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The words your insurance company hopes you don’t look up.

Plain-English definitions for the contract language that decides whether your claim gets paid. No jargon, no legal advice — just the read. Each definition links back to the free policy audit so you can apply it to your own declarations page.

Term

ACV vs. RCV

ACV (Actual Cash Value) pays what your damaged stuff was worth right before the loss; RCV (Replacement Cost Value) pays what it costs to replace today.

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Term

Depreciation

The amount the carrier subtracts from replacement cost because your stuff was used — held back until you actually finish the repairs.

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Term

Anti-concurrent causation

A clause that lets the carrier deny the entire loss if ANY contributing cause is excluded — even if a covered cause did most of the damage.

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Term

Sublimit

A cap inside your policy limit that limits a specific category — like mold, jewelry, or business equipment — far below your total coverage.

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Term

Endorsement

An add-on that changes the base policy — usually to extend coverage, raise a sublimit, or buy a specific peril back in.

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Term

Deductible (recoverable vs. non-recoverable)

Recoverable deductibles can be reduced or eliminated through specific endorsements or settlement structure; most are simply your share of every loss.

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Term

HO-3 vs. HO-5

HO-3 covers your dwelling on an open-perils basis (everything except what’s excluded) but personal property on named-perils only; HO-5 extends open-perils to personal property too.

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Term

Coverage A, B, C, D, E, F

The six standard Coverage letters on an HO-3 declarations page: A=dwelling, B=other structures, C=personal property, D=loss-of-use, E=liability, F=medical payments.

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Term

Ordinance or law coverage

A coverage line item that pays for the extra cost of bringing damaged parts of your home up to current building code during the repair — typically 10% of Coverage A by default, often insufficient.

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Term

Replacement cost vs. market value

Replacement cost is what it costs to rebuild your house with current materials and labor; market value is what someone would pay you for it on the open market. They are not the same number and the difference matters for both premium and claim payout.

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