A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Actual Cash ValueA claim payout method that reimburses what an item is worth today, after subtracting for age and wear.
- Replacement CostA claim payout method that pays what it costs to buy a new equivalent item, without deducting for wear.
- ClaimA formal request you file with your insurer to be paid for a covered loss or medical expense.
- Auto InsuranceCoverage for your vehicle that can pay for accidents, theft, and damage you cause to others while driving.
- Homeowners InsuranceCoverage that protects your house and belongings against damage and covers you if someone is hurt on your property.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
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Plain-English education — not personalized legal, tax, or investment advice.