Understanding Your Policy

We know that understanding your homeowners insurance policy can be a bit overwhelming with terms and coverages you may have never heard of. For that reason we created a Policy Terms link on our website which will explain things like your deductible, dwelling and umbrella insurance. We have shared a few of these terms below;

Deductible

The amount that you are responsible to pay out of pocket in the event of a covered loss. For example, if you have a $1,000 deductible on your policy and your home sustains $3,500 worth of damages from a covered loss, you are responsible to pay $1,000 and your insurer will pay $2,500 (the amount that exceeded your deductible).

Dwelling Coverage (Coverage A)

The part of your policy that covers the cost to repair or rebuild the physical structure of your home in the event of a covered loss.

Endorsement

Also known as a Rider, an amendment to an insurance policy that changes the terms of the policy by adding or subtracting coverage.

Exclusion

A provision in the policy that eliminates coverage. Examples include earthquake and flood, which both require separate policies, or intentional loss, maintenance, and intended injury.

Medical Payments to Others

Medical costs associated with injuries sustained by guests.

Other Structures

Coverage for structures on the property but not attached to the home, such as a driveway, fence, or detached garage.

Personal Liability

Personal liability coverage protects you and your household against claims and lawsuits for bodily injury or property damage to others, up to the limits of your policy. If you need higher personal liability limits than available on a typical policy, you may want to purchase an Umbrella Policy (see below).

Personal Property

Contents of your home, including electronics, furniture, appliances, etc. Expensive belongings such as jewelry or fine art may require an additional policy depending on the value.

Premium

The amount a policyholder pays for the insurance policy across the term of the policy, usually 1 year.

Replacement Cost

The amount that it cost to repair, replace, or rebuild damaged property after a covered loss, without deducting for depreciation.

Umbrella Policy

A policy that provides additional liability protection above your homeowners policy.

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