Adjuster: An adjuster works for the insurance company and is responsible for assessing the damage and determining the extent of your loss or damage when you submit a claim.

Claim: The notification you submit to your insurance company when you experience a loss or damages to your property.

Coverage: This refers to the protection provided by your insurance policy.

Deductible: When you have a claim, the deductible is the amount of money that you are responsible for paying toward an insured loss. Learn more about choosing a deductible in our Home Insurance 101: Deductibles article.

Deduction for depreciation: This refers to the loss of the original value of an item due to age, wear and tear or because it’s obsolete.

Depreciation: A lowering in value over time, usually due to wear and tear.

Effective date: This is the date that your insurance policy takes effect.

Excluded driver: Someone who isn’t covered by your auto insurance policy and cannot operate any vehicle listed on the policy.

Exclusion: This refers to any losses or events that aren’t covered by your insurance policy.

Guaranteed replacement cost: Your destroyed home will be rebuilt or replaced, no matter how much it costs in today’s economy.

Limitation: Similar to an exclusion, a limitation is an exception to your coverage that applies under certain circumstances or for a specified period of time.

Limitation period: If you were to take legal action against an insurance company, you’d have a certain period of time in which to do it. This time period varies depending on what province you live in.

Named insured: The person (or people) who’s been issued the insurance policy. Here’s a list of other people also included as insured on a policy:

• A legal spouse or unmarried partner that lives in the household
• Relatives and any minors that live in the household
• Student(s) attending a post-secondary school that are dependent upon the person who’s been issued the insurance policy for support, even if temporarily living away from home
• Parents or relatives residing in a long-term care home who are under the legal guardianship of the person who’s been issued the insurance policy

Personal liability: Personal Liability protects you and the insured people in your home in case you’re sued, whether you’re actually on your property or not. A common reason for getting sued is if someone gets hurt while they’re at your home. Check out a few more examples of in our post Liability coverage explained.

Policy declaration: A legal document that details who owns the policy, policy effective and expiry dates, what is insured and for how much.

Policy wordings: A legal document that details your insurance coverage, along with its terms and conditions

Premium: The amount that you pay for your insurance policy.

Replacement cost: The cost to repair or replace your home or personal belongings, including labour and materials, without any deduction for depreciation. (For homeowners, this isn’t the same as market value which includes the cost of the land.)

Seasonal dwelling: A secondary home (often a cottage or vacation home) that’s only occupied for a portion of the year.

Specialty belongings: Specialty belongings include: Jewellery, watches, gems, furs, collectibles (including sports cards, comic books, sports memorabilia, rare or signed books, coins and stamps) and silverware. Learn more in our article on How to look after your most expensive stuff.

Total combined limit: The maximum amount that can be paid out on your specialty belongings.

VIN: A VIN or Vehicle Identification Number is like a fingerprint for your vehicle. It’s a unique 17-character code that tells you where and when the vehicle was manufactured. It can typically be found on your vehicle’s dashboard on the driver’s side, on the driver’s side door post and inside the driver’s side door.