Dictionary of Terms
Additional living expenses: Your housing expenses while the work is going on if your house is uninhabitable. Additional living expenses also cover extra expenses you would not have incurred if you had not suffered a loss (compared to your usual expenses), in particular, expenses for your food or travel during the renovations. Keep your receipts.
Assignment of claim: A document that you sign authorizing the insurer to pay the service provider (disaster restoration professional, contractor, etc.) directly for the work that he carries out at your home. Be aware that you have no obligation to sign this document. Carefully read our advice on page “Step by step: what to do when a loss occurs“
Compensation: The amount you will receive in the event of a loss to repair or replace your damaged property (buildings and personal property) and the amount for additional living expenses.
Deductible: The amount you must pay in the event of a loss.
Depreciated value or Actual cash value: Replacement or reimbursement of damaged property at its value on the day the loss occurred, taking into account use and wear and tear.
Endorsement or Rider: A supplementary clause added to your contract, which changes your coverage, for example, water damage endorsements.
Exclusion: Any event, loss or situation that is not covered under your home insurance contract, for example: floods and landslides. Exclusions are stated in your insurance contract.
Limitation: The maximum amount, indicated in the contract, that your insurer will pay to you for property or a category of property in the event of a loss. Generally, there are limitations on jewelry, furs, software, CDs, DVDs, bicycles, animals, artwork, cash, etc.
Replacement value: Replacement or reimbursement of damaged property for the amount it would cost to buy it new, without any deduction for depreciation due to age.
Notice of claim: This is the statement you make to the insurer or its claims adjuster to notify them that you have suffered a loss. In it, you explain the circumstances, to the best of your knowledge. It is sometimes written, and may be followed by additional statements.
Personal property inventory: This is the list of property that forms the basis for your claim for contents.
Policy: The insurance contract between you and the insurer.