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10 Common Insurance Terms

From auto policies to home insurance, we want to empower you to make the most knowledgeable decisions possible. Here are 10 Common insurance terms you should know.

Deductible
The amount a policyholder agrees to pay before the insurance company covers a loss. Deductible amounts can vary.

Endorsement
A statement added to an insurance policy that alters, deletes or adds coverage, terms or provisions of the policy. An example would be additional coverage for sewer back-up.

Personal Property
Property which is easily moved. This includes things such as furniture, clothing and household goods.

Replacement Cost
The actual cost of replacing damaged or destroyed property with new property of similar type and quality, in contrast to Actual Cash Value (ACV).

Liability Coverage
Coverage for bodily injury or property damage to others for which you are held at fault.

Collision Coverage (Auto)
Coverage for damage to your vehicle that results from a collision with another vehicle or object.

Comprehensive Coverage (Auto)
Coverage for damage to your vehicle not caused by collision or upset. This coverage is subject to deductible. Examples include theft, vandalism, weather events and contact with animals.

Actual Cash Value
The value of any property that is lost or damaged at the time of the loss, which is often different than the Replacement Cost (RC). Actual Cash Value accounts for depreciation (or the loss of value over time).

Scheduled Personal Property
Additional coverage added to a homeowners policy for specific personal property items.

 

Insurance products offered through Gate City Insurance Agency are not deposits of Gate City Bank and are not protected by any type of deposit insurance, are not FDIC Insured, are not obligations or guaranteed by Gate City Bank, and may be subject to risk.

Not a DepositNot Insured by the FDIC or Any Federal Government AgencyNot Guaranteed by Gate City BankMay Lose Value

Not a guarantee of coverage.