Real Estate Glossary Terms

• Simple Interest

  A transaction in which interest is not paid on interest there is no compounding. For example, if you deposit $1,000 in an account that pays 5% a year simple interest, you would receive $50 interest in year one and another $50 in year two. If interest were compounded annually, you would receive $ ...

• Contract Owner

  Same as term Contract Holder: in insurance, individual with rightful possession of an insurance policy, usually the policyowner. ...

• Market Value V. Actual Cash Value

  Value of property as established by the price a willing buyer would pay for property purchased from a willing seller, compared with the replacement cost of damaged or destroyed property minus depreciation and obsolescence. Usually, replacement cost basis is used in property insurance to indemnify an ...

• Overcharging

  Charging the insured an amount that is above the actual premium required for placing and maintaining the policy in force. ...

• Straight Deductible Clause

  Section of a policy that specifies the dollar amount or percentage of any loss that the insurance does not pay. Most property and medical policies specify that the first portion of any loss is absorbed by the insured. A straight deductible clause, which is common in auto and homeowners insurance, mi ...