Renters insurance terms, explained

What these terms mean when they appear on renters insurance. Each definition describes the term itself, not what to do about it.

Actual cash value vs replacement cost: Two ways a policy can value covered belongings. Actual cash value subtracts depreciation for age and wear, while replacement cost uses the cost of a new item of like kind without that subtraction.
Aggregate limits: The most a policy will pay in total for a category of covered losses during the policy period, even when more than one loss occurs.
Claim: A request you make to your insurance company to pay for a covered loss.
Coverage: A part of your policy that pays for a specific kind of loss, up to a limit.
Deductible: The amount you pay out of your own pocket on a claim before your insurance starts paying.
Endorsement: An add-on or change to your policy that adds, removes, or adjusts coverage. Also called a rider.
Exclusion: Something your policy specifically does not cover.
In force: Active and providing coverage, because the policy is current and paid.
Insured: A person or thing your policy protects.
Liability: Coverage that pays for injury or damage you are responsible for causing to someone else.
Limit: The most your policy will pay for a covered loss.
Loss of use: Pays extra living costs, such as a hotel or higher rent, if a covered loss makes your rental unlivable while it is repaired.
Medical payments to others: Pays limited medical bills for a guest injured in your rental, regardless of fault, without needing a lawsuit.
Out-of-pocket: Money you pay yourself, that your insurance does not cover.
Personal liability: Pays if you are found responsible for injuring someone or damaging their property, up to your policy limit. It can also cover a legal defense.
Personal property: Coverage for your belongings, like furniture, clothing, and electronics, up to a limit you choose, if they are damaged or stolen by a covered event.
Policyholder: The person who owns the insurance policy.
Premium: The amount you pay for your insurance, usually each month or once a year.
Scheduled property endorsement: An add-on that lists specific valuable items separately and states the coverage terms and limits that apply to them.
Sub-limit: A smaller, separate cap inside a coverage that applies to certain items or losses.
Sublimit: A smaller, separate cap inside a coverage that applies to certain items or losses.
Underwriting: How an insurer decides whether to cover you and at what price, based on the risk.

Other policy types

These are general definitions. Your own policy is what governs your coverage, and the same term can be defined differently from one policy to the next.