Home Insurance Glossary

When searching for home insurance keep the following terms in mind.  They will help you to get the best deal possible.

Actual Cash Value: Stands for the current cash value of the property with your home insurance policy.

Casualty Insurance: A benefit of home insurance is that this protects you in a legal sense as far as damage to another’s property, or injury to another person.

Coverage A: When it comes to home insurance, this covers your home as well as anything that is attached to it.

Coverage B: Covers anything on your property that is detached from your home such as a shed or garage.

Coverage C: Offers home insurance coverage anywhere in the world for your personal property.

Coverage D: Home insurance covers expenses that you may incur due to having to live elsewhere because of damage to your covered home. 

Exclusions: A section of your home insurance policy that notes what type of loss and damage is not included.

Liability Coverage: With home insurance, it covers property damage and bodily injury.

Limit of Liability: If a loss occurs, this is the maximum amount in your home insurance policy that you will have to pay out of pocket.

Property Insurance: An aspect of home insurance that covers real or personal property.

Statutory Limits: The minimum amount of home insurance coverage that is allowed by law.