Home Insurance Glossary

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  • In the home insurance context, an Act of God which may or may not be covered is a natural occurrence such as a hurricane or earthquake.

  • The cost of repairing or replacing damaged property to the same physical condition as the original property prior to any damage occurring.

  • A policy endorsement or rider that provides extra coverage above what a homeowners insurance policy covers.

  • Part of a homeowners insurance policy that provides reimbursement for hotel rooms, meals, and other necessary expenses due to loss of property and the need to have temporary residence elsewhere. Also known as Loss of Use.

  • A single incident or series of incidents that causes an insured property a significant loss. Insurance companies calculate the probability of catastrophic loss on a state-by-state basis and this factor is used to help determine the cost of insurance.

  • A type of insurance policy that is similar to a homeowner’s insurance policy but covers the condo from the walls in as opposed to the entire building.

  • The amount that a policyholder must pay on insurance claims before the insurer is liable to cover any damages.

  • The decrease in a property’s value as a result of wear and tear over time.

  • A type of policy that excludes liability coverage but protects against damage to a home in the event of a covered claim such as fire, hurricane, lightning strike, etc. Also known as Coverage A.

  • A document amendment or addition to an existing insurance policy in order to make a change to the policy. They are also referred to as riders and can be used to add, remove, exclude or alter insurance coverage.

  • Specific conditions or circumstances listed on a policy that are not covered by the homeowners insurance policy.

  • Property insurance for items that are moved from location to location to ensure losses are covered in any location. This type of insurance provides coverage for items such as jewelry, fur or other items that may not be covered in a standard policy.

  • An insurance policy that combines personal liability insurance and hazard insurance coverage for a home or dwelling and its contents.

  • Responsibility for causing injury to another person or damage to another person’s property.

  • An insurance policy that pays on behalf of a policyholder who is legally responsible for bodily injury or property damage on another person and covered within the home insurance policy.

  • An insured/applicant’s history of claims or losses on a current or previous homeowners policy. This history record is used in the underwriting process of a new policy or renewal of an existing policy. 

  • See Additional Living Expense

  • The price for which a home would sell under the current market conditions.

  • Intentional false statements made by an insurance applicant or policyholder in an attempt to obtain coverage.

  • A type of home insurance coverage that provides coverage for any losses due to enforcement of ordinances or laws that require upgraded materials for repair or replacement of damaged property.

  • The possible cause of loss covered by an insurance policy such as a fire or windstorm.

  • Any tangible property that is not classified as real property such as automobiles, furniture, clothing, jewelry, etc.

  • A contract that is issued by an insurance company to the insured policyholder.

  • The price of insurance protection for specific risk for a certain period of time. Homeowners insurance premiums are often charged on an annual basis.

  • Insurance that covers damage to or loss of the policyholder's property.

  • An individual who acts as an advocate for the policyholder in the process of appraising and negotiating an insurance claim.

  • Fixed property such as land and buildings.

  • A type of insurance policy that offers coverage for personal liability and personal property but does not include real property, such as land or buildings.

  • The cost of replacing property at the current market prices.

  • In homeowners insurance, risk is the potential for loss from peril.

  • A type of insurance that usually covers a portion or all of an outstanding loan to a lender for mortgaged or leased property.

  • The process that an insurance company uses to decide whether to accept or deny insurance coverage.