• • Actual Cash Value (ACV) – What an item was worth at the time it was damaged or stolen.
  • Additional Living Expenses – Pays costs above your normal expenses if your home is damaged by an insured event to the extent that you cannot live there while repairs are being made.
  • Bodily Injury Liability – Coverage for claims made against you for injury/death of others caused by your negligence.
  • Collision – Covers damage to your vehicle when it is involved in an accident or collides with something. Collision does not cover injuries to people or damage to property other than your covered vehicle. If your vehicle is financed, most lenders will require collision coverage to protect its interest.

• • Comprehensive Coverage – Covers damage to your vehicle due to perils other than collision. Comprehensive perils include fire, theft, vandalism, flood, falling objects and colliding with a bird or animal.
  • Contents – Coverage for personal property that is movable such as televisions, radios, clothes and household items.
  • Deductible – Amount for damages you must pay before your insurance company begins paying.
  • Dwelling – A permanent structure with walls and a roof. Most dwellings also include plumbing, wiring, and heating and air conditioning equipment. Other basic equipment such as fire extinguishers, snow shovels, lawn mowers and so forth, which are used to service the dwelling and surrounding land, are covered as personal property and are not considered as part of the dwelling in a homeowners policy.

• Exclusion – A contract term referring specifically to property, people, situations or items not covered by your policy.
• No-Fault – Basic no-fault coverage provides up to $10,000 to each occupant in your vehicle for medical expenses, lost wages and similar “out-of-pocket” costs due to an injury occurring in an automobile accident.
• Perils – Events that cause damage to property such as fire, windstorm and theft.
• Policy Limit – The maximum amount that the insurance company will pay on any covered loss.
• Property Damage Liability – Coverage for damage or destruction to another person’s property caused by your negligence.

• Replacement Cost (RCV) – What it will cost to replace an item.
• Underinsured Motorist (UIM) – Coverage for bodily injuries sustained by you and/or your passenger that exceed the limits of the responsible party’s policy.
• Uninsured Motorist (UM) – Coverage for bodily injuries sustained by you and/or your passenger in an accident caused by the negligence of a driver who had no insurance or by a hit-and-run driver.

Source: Kentucky Public Protection Cabinet/ Department of Insurance