Claim words

The words your adjuster uses, in plain English

Every one of these turns up in a claim, and each one changes what you get paid. One page each, answering what it means for your money.

• Actual cash value (ACV)What your item is worth used — not what it costs to buy the same thing new.
• Replacement cost (RCV)What it costs to buy the same thing new today.
• DepreciationWhat the insurer knocks off for age and wear.
• Recoverable depreciationThe part they still owe you once you replace the item.
• SublimitA separate, lower cap on one category of things.
• DeductibleThe part of the loss you cover yourself before the insurer pays anything.
• PerilThe cause of the loss — fire, water, wind, theft.
• Loss reportThe list you send your insurer of what you lost and what it was worth.
• ReconciliationChecking their numbers against yours, line by line.