Save Money With Lower Home Insurance Rates!


Save Money With Lower

Home Insurance Rates!


Here is a list of general terms you can expect to encounter when buying home insurance.

These are terms it's good to know when shopping for homeowners insurance.

  • Independent Agent
    A self-employed individual who represents multiple insurers and gets a commission from each on every policy he sells.
  • Underwriting
    The method by which insurers assess risk to determine if you should get coverage and if so, what your premiums should be.
  • Policy
    Your written contract with an insurance company to cover your home and personal property in the event of loss or damage.
  • Premium
    The price you pay for homeowners insurance over a specific period of time.
  • Claim
    A request made by the policyholder to the insurance company for reimbursement for property loss.
  • Deductable
    The amount of money the policyholder must pay on each claim before the insurance company steps in and picks up the rest of the tab.
  • Appraisal
    Happens after a claim is filed, when the insurance company sends a representative to your home to assess the value of the property lost.
  • Exclusions
    The losses to property that are not covered by your insurance company. These are enumerated in your policy.
  • Endorsement
    An alteration, in writing, to the original coverage offered in your policy.
  • Individual Policy
    A policy that is sold to an individual homeowner. It is not necessary to be a member of an employment-related group, or other type of group to obtain such a policy.
  • Group Policy
    Policies available through groups the policyholder belongs to. Such groups can be associations, special insurance trusts, or employment-related.
  • Inflation Protection
    A part of a policy that automatically adjusts coverage limits to meet the rising costs of home repair.
  • Cancellation
    Immediate termination of a policy due to misrepresentation by the policyholder or other reasons delineated in the policy.
  • Nonrenewable Policy
    When an insurer chooses not to renew a policy citing provisions in the original policy that are legal and acceptable reasons for nonrenewal under state law.
  • Depreciation
    An estimate of the decrease in value of your property that has occurred over time due to wear and tear and aging, as well as other factors.
  • Market Value
    The current value of your home, including the land it is situated on.
  • Lapse
    Failure to pay your premium by the due date. Unless there is a grace period, this may result in policy cancellation.
  • Liability Insurance
    Covers losses that a policyholder is legally responsible for due to negligence.
  • Peril
    Anything that is the cause of a loss—from natural disasters to theft.
  • Personable Property
    Anything you own that is either movable or temporary in some way, such as items of jewelry, clothing, or furniture.
  • Real or Tangible Property
    Land, or anything attached to, embedded in, or growing on it.
  • Replacement Cost Coverage (on Dwelling)
    What the insurance company pays you to replace damaged property or structures, not factoring in depreciation. There is usually a cap on this.
  • Replacement Cost Coverage (Contents)
    What the insurance company pays you for the replacement of damaged or lost personal property.
  • Sub-limit
    A specific amount that is less than the maximum coverage offered by your policy and applies to particular types of property.