"Actual cash value" means the amount it would cost to repair or replace covered property, at the time of loss, with material of like kind and quality, less allowance for physical deterioration and depreciation, including obsolescence. "Actual cash value" applies to valuation of covered property regardless of whether that property has sustained partial or total loss.
At Goodcover, for short we often call this the "craigslist" price for something. What are "depreciated" clothes worth? This is why all Goodcover policies pay losses on a "Replacement Cost Coverage" basis.
An Additional Insured is a person or company that you add to your policy to get
benefits of the Liability Section of your policy. This means we agree to defend them against
lawsuits in the same ways in which we have agreed to defend you.
An Additional Insured does not get benefits under your Property coverage (i.e., coverage for your stuff) the way they would if they were named as Second Named Insured.
Sometimes your landlord will ask to become an “Additional Insured” on your policy. Goodcover doesn’t allow this - it causes a ton of issues if you or your landlord is sued, or worse if your landlord sues you or you sue your landlord! Good news is that 9 times out of 10 what they mean is they want to become Additional Interests, which is totally normal, fine - and free.
An Additional Interest is a person or company, usually your landlord, who you name on your policy and who is entitled to get notifications from the insurer about your policy’s status.
Basically, landlords want to know you have active coverage, enough coverage, you pay the bill, and your policy doesn’t cancel or lapse for any reason. Goodcover takes care of these notifications for you without exposing any more personal data than is legally required.
This type of policy (or coverage) covers a broad range of losses. The policy covers risks not explicitly excluded in the policy contract. In the case of Goodcover this is what we refer to as Ultragood coverage.
The amount of money the policyholder is responsible during a claim. For example, if your $2,000 computer is stolen, and you have a $500 deductible, you will receive $1,500 ($2,000 - $500).
The conversion of a mutual insurance company, which is one that is owned by the policyholders, to a capital stock company. Conversely, shareholders own a stock insurance company.
The portion of the insured's prepaid premium that corresponds to coverage provided in the past. Since you had coverage for that time, the premium is considered “earned” by the insurer. For instance, if you paid for a yearly policy entirely upfront, six months into the policy 50% of the premium is considered "earned". In California, when you cancel a residential insurance policy, the insurer must legally return the "unearned" portion of the premium you’ve already paid them. See "Prorated refund".
The person (aka policyholder) listed on the insurance policy who is protected in case of a covered loss.
The policyholder is not the only person though that fits under Goodcovers policy’s definition of "insured" - spouses and resident relatives, even if they aren’t named on the policy, are automatically insureds.
The premises covered under a policy. In a renters insurance world this would be the place you rent that is listed on the policy as the insured location.
Policies (including ours) cover a bunch of other locations that aren’t named in the policy as “insured locations” - such as a place you are temporarily living, or a place you are moving into from your old residence.
When a policy expires without being renewed, it is considered "lapsed". If this ever happens, and you want to get insured again, you’ll have what insurers call a "lapse in coverage" - i.e. a period in which your stuff wasn’t insured - which makes a lot of them nervous. So, if you are looking to keep your coverage, best thing to do is make sure your payment details and accounts are up to date, so it doesn't accidentally become cancelled or lapsed.
Moral hazard is the term insurers use to describe changes you make in your behavior that increase the risk of loss, since you know you have insurance to cover you if there's a loss.
For instance, you know your insurance will cover you if your bike is stolen, so you intentionally decide not to bother locking it up.
Property damage in the context of a Goodcover policy means physical injury to, destruction of tangible property, including the loss of use of that property.
In California, when you cancel a residential insurance policy, the insurer must legally give you a prorated refund. This means they must return the "unearned" portion of the premium you’ve already paid them. For instance, if you paid your yearly premium upfront, and cancelled six months into the policy, you will be due a refund of 50% of what you paid.
Every policy has a Named Insured - that's usually you, the policyholder. But what if you want to name somebody else on your policy that co-owns your property with you? That might be a Spouse or resident relative (even though, technically, these are already insureds by default!), or it might be a partner. If you are both owners of the insured stuff, then you can add them as a "Second Named Insured". They become listed right under you on your insurance documents, and have all the same rights to the policy you do - except one. You can remove them from the policy, but they cannot remove you.
Goodcover will not add roommates as second named insureds. If you all don't co-own all the property you are insuring (do you want them paid when your laptop is stolen?) or you might move out (do you want your roommate's losses on your insurance record?) it is a bad idea anyway. If you landlord requires all roommates to have insurance, that's fine - you should each get your own policy, adding your landlord as an Additional Interest.