Homeowners' insurance can be confusing. There are a lot of terms that are specific to the industry, and it can be tough to keep them all straight. If you're not sure what something means, it's important to ask your insurance agent for clarification.
This blog post will go over some of the most basic homeowners insurance terms. By understanding these terms, you'll be able to read your policy more easily and know what is covered in the event of a claim. Let's get started!
Homeowners’ Insurance Terms You Should Know
- Deductible: The amount of money you must pay for a claim before your insurance coverage kicks in.
- Replacement Cost Coverage: This is the cost to replace or repair damaged items, minus depreciation. It does not cover the cost of purchasing or renting new items.
- Actual Cash Value (ACV): This is the replacement cost minus depreciation, meaning that you won't get back as much money as you paid for an item when filing a claim.
- Peril: A specific event or accident that can cause damage and may be covered under your policy. Examples include fire, theft, windstorm, flood, etc.
- Liability Coverage: Protects against claims related to injury or property damage caused by you or another person on your property.
- Personal Property Coverage: Insures the possessions in your home, such as furniture and electronics.
- Extended Replacement Cost Coverage: This covers replacing items at today's prices, even if they cost more than when you first purchased them.
- Umbrella Insurance: An extra layer of coverage that provides an additional limit above and beyond what is covered by your homeowners’ insurance policy.
Now that you know the basics of homeowners insurance terminology, you can read your policy more confidently! Be sure to reach out to your insurance agent if any terms or coverage details don't make sense. If you can’t get the clarification you need from your insurance agent, you can also contact an insurance claim lawyer. Knowing what kind of coverage is included in your policy will help ensure you're prepared in the event of an accident or claim.
We’re Here to Help
If you need help with your homeowners’ insurance claim, don’t hesitate to reach out to our skilled team right away. At RAK Law Firm, PLLC, we are experts on the “fine print” that others miss, and we are ready and willing to do everything we can to help you now.
RAK Law Firm, PLLC is here to fight on your behalf for benefits from the homeowners’ insurance company. Call (813) 750-0513 today for an initial consultation.