Common Claims Terms

Actual Cash Value (ACV)

In an automobile claim, ACV is the fair market value of the property on the date of the loss. To determine ACV of a vehicle in an auto claim, the values of comparable vehicles in your area are taken into consideration.

In a home claim, ACV is often referred to as depreciated value. This is the cost to replace an item with an item of like kind and quality, less depreciation.

Claim

A claim is a request for payment under the terms of an insurance policy.

Claim handler

Once your claim has been reported and assigned, this is The Hartford claim representative who will serve as your primary contact throughout the claim process. Your claim handler will answer your questions, update you throughout the claim, and work diligently to resolve your claim.

Deductible

It is the amount you've agreed to pay out of pocket before The Hartford pays for any covered losses. You selected your deductible when you purchased your policy.

Depreciated value

Depreciation is a decrease in the value of an item due to its age or condition, or as defined by state law. In a home claim, the depreciated value, or actual cash value, is the cost to replace an item with an item of like kind and quality, less depreciation.

The Hartford Auto Repair Shop Network

Repair shops that have undergone an extensive selection process to perform both inspections and repairs to help save you time. And The Hartford backs their workmanship with a nationwide guarantee. There are 1,800 independently owned auto repair shops within our network of recommended repair shops.

Lien holder

In an automobile claim, the lien holder is a person or organization with a financial interest in the vehicle, up to the amount borrowed or still owed on the vehicle.

In a home claim, the lien holder (for example, the homeowner or mortgage holder) is the entity with a financial interest in the home or property, up to the amount borrowed or still owed on that home or property.

Out of pocket

Out of pocket refers to expenses that a policy holder is responsible for paying when a covered claim is filed. The most common examples are deductibles, some or all portions of vehicle rentals in an automobile claim (depending on the policy and the rental arrangements), and certain unrecoverable depreciation costs in a home claim (depending on the policy).

Premium

A premium is the amount you agreed to pay for your insurance policy.

Replacement cost

In a home claim, it is the cost to repair or replace damaged items with new items of like, kind and quality (without deduction for depreciation).

Salvage

Salvage is value of the damaged property. In connection with a covered claim, the insurance company has the right to sell the damaged property to recoup a portion of the amount paid to the policyholder. For example, in an automobile claim, salvage is the value of a total loss vehicle, taking into consideration the fact that the vehicle has not been repaired. It is typical for an insurance company to take possession of a salvage vehicle and then sell the vehicle at auction.

Subrogation

During the course of investigating your claim, if we determine that another party is at fault, we will attempt to recover the loss payments related to your covered claim, including your deductible, from the negligent party.

Supplements

In an automobile claim, supplements or supplemental estimates address hidden damages that were not included in the original estimate.

Total loss

In an automobile claim, a vehicle is considered to be a total loss when the extent of the damage renders the vehicle unsafe to repair or the cost to repair exceeds a certain threshold percentage, as may be determined by state regulations, of the vehicle's actual cash value prior to the accident.