Home Insurance Coverage Terms

Home Insurance Coverage Terms

It will be easier for you to negotiate for the best home insurance coverage if you’re well-known with the common industry terms such as:

- Actual Cash Value: This is present property cash value which is equal to the replacement cost less depreciation.

- Base Premium: The charge for Coverage A (Dwelling total on Homeowner forms) or Coverage C (Private Property total on Renter forms) without any additional coverage.

- Binder: A notification from your agent which shows that insurance is in force, protecting you until your full home insurance coverage policy is issued.

- Casualty Insurance: Protects your official responsibility from injury to another person’s property or damage to another person.

- Coverage A: Covers your home and anything attached to your home, such as cabinets, carpets, and plumbing.

- Coverage B: Covers other structures on your property that are clearly separated from the home (e.g. separate garages, storage sheds, in-ground pools).

- Coverage C: Covers your things or personal property anyplace in the world.

- Coverage D: Covers the extra expenses you bring upon yourself to live someplace else due to harm caused by a covered loss.

- Exclusions: This is that part of your home insurance coverage contract that specifies the types of losses that are not covered by your policy. Exclusions are not covered by your home insurance.

- Grace Period: The period of time further than the due date of your policy premium throughout which your home insurance coverage will carry to be in force.

- Inland Marine: Movable property such as furs, jewelry and stamp collections insured by policies called floaters

- Liability Coverage: Home insurance coverage for bodily injury and property harm.

- Limit of Liability: The highest amount of damages that you have to pay in the happening of a loss.

- Property Insurance: Home Insurance coverage for your private or real property.

- Replacement Cost on Contents: An approval that insures for replacement cost rather than actual cash value.

- Rider (Endorsement): A written form or statement that changes or restricts your insurance contract.

- Statutory Limits: The least amount of liability that the law requires you to bear.

- Waiver: A signed contract in your home insurance coverage not to endorse a right or privilege.

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