Common Coverage Definitions

Some of the most common coverages and their definitions are listed below:

Dwelling

Your physical home and the structures attached to it.

Other Structures

Structures that are not directly attached to your dwelling. For example a detached garage or storage shed.

Personal Property

Your personal possessions such as furniture, clothing and appliances. Certain types of possessions have limited coverage or may be excluded.

Loss of Use

Also referred to as Additional Living Expense. If a major covered loss makes your house uninhabitable, this coverage will reimburses you for your housing and other living expenses while your home is being repaired.

Deductibles

A deductible applies to the property portion of the homeowners policy. It is the amount you would have to pay out of your own pocket before the insurance will cover expenses. Common deductibles are $250, $500, $1000. The higher the deductible, the lower your policy premium. If you are purchasing a new home, it is a good idea to see what your lenders requirements are on maximum insurance deductibles.

Personal Liability

Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person. Most homeowner policies provide a minimum of $100,000 of liability protection, with the option of increasing to fit your needs.

Medical Payments

Pays all reasonable and necessary medical expenses to a guest(s) if injured while on your property. Payments are without regard to fault for a specified period from the date of an accident and do not cover the policyholder, or residents of the household.

Covered perils

A peril is a loss insured against. Some of the common perils on a Homeowners Insurance policy are:

• Fire or Lightning
• Windstorm or Hail
• Explosion
• Riot or Civil Commotion
• Aircraft
• Vehicles
• Smoke
• Vandalism or Malicious Mischief
• Theft
• Falling Objects
• Weight of Snow, Ice or Sleet
• Falling Objects
• Freezing of Plumbing
• Accidental Plumbing Discharge
• Sudden, Accidental tearing of hot water heating system, air conditioning systems, or appliances
• Damage from Artificially Generated Electricity

(Coverages vary by company and by state and may have to be added by endorsement – please refer to your policy, or speak with your licensed insurance representative for an accurate list of perils insured against)

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