If a home is insured for ACV, the policy states that if the property sustains a covered loss, the insurance company will only pay for the value of the damaged dwelling appurtenances, minus depreciation. This is normally much less than the cost to repair or replace the...
A type of insurance coverage included with homeowners policies. ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss. For example,...
Contract by adhesion are issued by one party, but does not require signature by the other party in order to be valid/accepted. Typically courts will interpret contract conditions in favor of the party that accepted the contract, rather than the one that constructed...
A person who settles insurance claims. Adjusters typically investigate the loss and determine the extent of coverage and negotiates payment to the insured. In liability insurance, the adjuster coordinates the insured’s defense and participates in settlement...
An imbalance in exposure by the insured created by persons that expect a high probability of loss for themselves seek to buy insurance to a much greater degree, than those who perceive a low probability of loss.
