Homeowners Insurance Key Terms

It's important for your business to learn homeowners insurance key terms

Homeowners insurance key terms are important to know if you want to make sure you are getting the best policy for your money. You need to understand your level of coverage and whether it is enough to replace your home in case of a total loss. It is as important that you make sure special items, such as jewelry and business equipment, have special endorsements.

You should also understand the amount of your deductible. You don't want it to be too high, because you must be able to absorb it if you have a claim. Finally, carefully review the information on the declaration page, which lists the important points of the policy. You want to be sure it is accurate and covers everything you and the agent have discussed.

 

Level of protection or coverage

Your mortgage company will insist on a certain level of protection or coverage for your home. However, they demand just coverage for the replacement of the home, which doesn't take into account your possessions or inflation.
Try: Agencyinfo.net explains the various levels of protection or coverage that your homeowners insurance may offer.

Special provisions and endorsements, riders and schedulers

Special provisions cover your more valuable possessions, including jewelry, antiques or computers.
Try: Insure.com provides information about special provisions.

Incidental occupancy

Incidental occupancy is the use of a residential home for purposes other than living -- for instance, use as a studio or home office. To qualify for this coverage, the residence must primarily be a home. The only incidental occupancy you can have is the one specified in the policy.
Try: Mather & Pitts explains the concept of incidental occupancy.

Deductible

A deductible is the amount of money you will be responsible for if you file a claim. For every claim you put in, you have to pay the deductible. For instance, say you have a policy with a $500 deductible and there is a theft in your home that amounts to a $3,000 loss. You are responsible for the first $500, and the insurance is responsible for the difference.
Try: LendingTree offers advice on choosing the right deductible.

Claim

A claim is a request for a loss you have suffered. In the case of homeowners insurance, the loss might be due to a theft or fire in your home.
Try: Surf Rate explains what a claim is and how to file one.

Declaration page

The declaration page is usually the first page of your homeowners insurance policy. It contains the name and address of the insured, the amount of coverage, a description of what is covered, and the cost of the policy.
Try: Danny Lipford gives advice on understanding the declaration page.

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