do you know insurance terms? learn more about homeowners insurance terms.

The amount needed to replace damaged property at market value, less deduction for age and wear and tear.

Homeowners policies typically cover additional living expenses that exceed the policyholder’s normal living costs when their home becomes temporarily uninhabitable due to a covered peril. These additional living expenses may include temporary housing, food, laundry, transportation, storage fees, and other related expenses. It’s important to note that coverage limits and eligibility vary from policy to policy, so it’s best to review your policy details with your insurance agent to understand your coverage.

A signed agreement in which an insured transfers or assigns any and all insurance rights, benefits, and causes of action under the insurance policy to a third party.

You may see this coverage referring to protecting the structure of your home. This coverage applies to the dwelling and any structures attached to it that are located on the residence premises. It also applies to any materials and supplies used to construct, alter, or repair the dwelling or other structures on the premises. However, this coverage does not apply to the land on which the dwelling is located or any other land associated with the premises.

This coverage protects “other structures” on the residence premises, such as a garage, storage shed, or gazebo, which is separate from the dwelling. Fences and utility lines are not covered. Please ask your agent if you have any questions about your coverage. 

This coverage protects your personal property. You can get this coverage as a homeowner or as a renter. 

Coverage D is known as Loss of Use coverage. It will apply if you can no longer live in your home because of a covered loss. 

The amount that you, as a policyholder, must pay toward your loss before the insurance company begins to pay its share within the limits of your policy.

The reduction in your property’s value due to age and normal wear and tear.

We understand your coverage needs may change. You can contact us or your agent to create an endorsement. This is a change to your coverage. Please reach out to your agent or our insurance professionals to learn more about your policy and adding an endorsement.

A hurricane deductible is an additional amount (either a percentage or a dollar amount) that is triggered in the event of a hurricane-related loss. The intensity of the storm will determine if this deductible goes into effect. Homeowners need to understand their hurricane deductible and the risks to their property associated with living in a high-risk area.

The action(s) taken to avoid or reduce damages. For example, in the event of a leak, you may elect to turn off the water supply to prevent further damage.

Perils are causes of loss, such as Wind, Water, Fire, etc., that are specified in your policy.

If your policy does not have Replacement Cost Value and a payment is made on your insurance claim, the payment you receive will have depreciation applied or deductions taken for age and wear and tear. No reimbursement will be made for the amount of depreciation deducted.

If your policy has Replacement Cost Value and a payment is made on your insurance claim, the payment received may still have depreciation applied or deductions taken for age and wear and tear. However, you may be eligible for reimbursement for the amount of depreciation deducted.

The amount needed to replace damaged property at market value, without deduction for depreciation. This amount cannot exceed the limits stated in your policy.

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