Vocabulary

• Homeowner's Insurance – A form of property insurance that covers losses and damages to an individual's house and to assets in the home.
• Premium – The amount of money that an individual or business must pay for an insurance policy.
• Deductible – The amount you pay out-of-pocket for expenses before the insurance company will cover the remaining costs.
• Liability Coverage – Part of a homeowner's insurance policy that protects against lawsuits for bodily injury or property damage.
• Property Damage – Damage to or loss of personal property due to theft, fire, or other covered perils.
• Personal Property – Personal belongings owned by you or family members who live with you.
• Policy Limit – The maximum amount an insurer will pay under a policy for a covered loss.
• Actual Cash Value – The depreciated value of an item at the time of the loss.
• Replacement Cost – The cost of replacing lost or damaged property without deducting for depreciation.
• Peril – The specific risks or causes of loss covered by an insurance policy, such as fire, windstorm, or theft.
• Claim – A formal request to an insurance company asking for a payment based on the terms of the insurance policy.
• Endorsement – A written provision that adds to, deletes or modifies the provisions in an original insurance policy.
• Exclusion – A provision in an insurance policy excluding certain risks or otherwise modifying coverage.
• Personal Liability – The portion of homeowner's insurance that covers you against claims for bodily injury and property damage to others.
• Adjuster – An insurance company representative responsible for investigating and settling a claim.
• Appraisal – A professional assessment of the value of your property.
• Underwriting – The process by which an insurer determines the risk of insuring a home or a specific item.
• Liability Limit – The maximum amount your liability policy will pay toward a judgment against you or a settlement.
• Medical Payments Coverage – A part of a homeowner's insurance policy that pays for medical expenses for people who are accidentally injured on your property.
• Umbrella Policy – Extra liability insurance coverage that goes beyond the limits of the homeowner's insurance.
• Hazard Insurance – Coverage within a homeowner's policy that protects against physical damage to a property.
• Rider – A modification to an insurance policy that provides additional coverage or modifies the conditions of the policy.
• Depreciation – A decrease in the value of your property over time due to wear and tear or obsolescence.
• Inflation Protection – A feature of a homeowner's insurance policy that adjusts the coverage limit annually to keep pace with inflation.
• Named Peril – A specific risk or cause of loss covered by an insurance policy.
• All-Risk Policy – An insurance policy that covers all risks except those specifically excluded.
• Dwelling Coverage – The part of a homeowner's insurance policy that may help pay to repair or rebuild the physical structure of your home if it's damaged by a covered risk.
• Loss of Use – Coverage that provides reimbursement for living expenses when a home becomes uninhabitable due to a covered loss.
• Floater – A type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not.
• Binder – A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
• Insurance To Value – A policyholder's coverage amount should be enough to fully rebuild the home in the event it is completely destroyed, regardless of the market value.
• Coinsurance – A clause in an insurance policy that requires the policyholder to carry insurance equal to a certain percentage of the total value of the property.
• Grace Period – The time period after the premium due date during which the policyholder can still make a premium payment to keep the policy in force.
• Subrogation – The legal right of an insurance company to seek reimbursement from the person or entity legally responsible for a loss it has paid.
• Holdback Provision – A clause in an insurance policy that allows the insurer to retain a portion of the insurance payout until the insured item has been repaired or replaced.
• Mortgagee – The lender in a mortgage agreement, often a bank or other financial institution.
• Occupancy – The use of a house or property, affects the cost of a homeowner's insurance policy.
• Bundle – Buying multiple types of insurance policies from the same company, often results in a discount.
• Mutual Insurance Company – An insurance company owned by its policyholders who share in profits and losses.
• Stock Insurance Company – An insurance company owned by stockholders who share in profits and losses.
• Direct Writer – An insurance company that sells policies directly to consumers without using agents or brokers.
• Independent Agent – An insurance agent who sells policies from multiple insurance companies.
• Captive Agent – An insurance agent who sells policies for only one insurance company.
• Public Adjuster – An independent insurance claim adjuster who is hired by the insured to assist in preparing, filing, and adjusting insurance claims.
• Act of God – Natural disasters such as hurricanes or earthquakes that can be covered by homeowner's insurance.
• Water Backup Coverage – Insurance that covers damage caused by water backing up into your home from sewer or drain lines.
• Scheduled Personal Property – Additional coverage for expensive items like jewelry and art.
• Landlord Insurance – Specialized insurance coverage for property owners who rent out one or more residential homes, apartments, or condos.
• Condo Insurance – A policy that covers personal property and liability risks for condominium owners.
• Townhome Insurance – Insurance that covers the unique needs of townhouse owners, which often includes coverage for shared walls.