02/23/2026
Insurance words can sometimes be big and confusing, and it is hard to know where to look for answers. Here are a few terms that you should know that may help you understand insurance better:
Indemnify - This means your insurance is designed to restore you financially after a covered loss -- not better off, and not worse off than before.
Subrogation - If your insurance company pays for a loss that someone else caused, they may pursue reimbursement from the at-fault party. This can sometimes result in your deductible being recovered.
Duty to Mitigate- Homeowners are responsible for taking resonable steps to prevent further damage after a loss. For example, shutting off the water after a pipe burst or placing a tarp on a damaged roof.
Actual Cash Value (ACV) - This is the value of an item after depreciation. Age, condition, and wear are taken into account.
Replacement Cost - This pays what it costs to replace an item at today's prices, without deducting for depreciation.
If you have any questions while you are reviewing your policy, please call us and we are happy to help.
