Federal Way, Tacoma, Seattle, Black Diamond, Puyallup and Surrounding Areas

Category: Glossary of Insurance Terms

Insurance Terms: Earthquake

Earthquake Earthquake – property coverages for losses resulting from a sudden trembling or shaking of the earth, including that caused by volcanic eruption. Excluded are losses resulting from fire, explosion, flood or tidal wave following the covered event.

Federal Way based car, auto, home and umbrella Insurance agent defines Replacement Cost

Insurance Terms: Replacement Cost

Replacement Cost Replacement cost is the cost of replacing property without a reduction for depreciation due to normal wear and tear. Example: 10 years ago you paid $10,000 for a new roof on your home.  Suddenly a wind storm wipes out the majority of the shingles and leaves you needing a new roof.  With Replacement…
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Insurance Terms: Captive Agent

If you are insured by a agent that only provides one name brand of insurance, theirs, you are with a captive agent.  Farmers, Allstate, State Farm and American Family are examples of captives. Captive Agent – an individual who sells or services insurance contracts for a specific insurer. Captive Insurer – an insurance company established…
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Actual Cash Value

Insurance Terms: Actual Cash Value

Actual Cash Value: Actual Cash Value or ACV is repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation Principle of Indemnity: A general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial…
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