D - GLOSSARY - Deductible: The amount a policyholder must pay out of pocket before an insurance company will cover any expenses. - Depreciation: The reduction in the value of an asset over time, often due to wear and tear, which can affect the settlement amount in a claim. - Direct Loss: Physical damage or destruction to property or assets directly resulting from an insured peril. - Disability Insurance: A type of coverage that provides income in the event a policyholder is unable to work due to a disabling injury or illness. - Dividend: A return of part of the premium paid by a policyholder under a participating insurance policy, reflecting the insurer's profits. - Dwelling Coverage: Part of a homeowners insurance policy that covers the structure of the home in the event of damage from a covered peril.