Couch Braunsdorf: Glossary of Terms Individual Home Insurance

This glossary is intended to provide a general overview of policy types and available coverage. Specific policy language must be referenced to determine the exact coverage, terms, conditions, and exclusions contained in that policy.

Homeowners policies are designed to protect you from financial loss due to physical damage to your home, your personal property, and from liability claims for which you become responsible.

Coverage for your house can be "all risk", as opposed to being limited to certain types of losses. You should be aware of the differences between the available policy types. A "limited" policy will specify the types of losses for which you will be covered. An "all risk" policy pays all losses except those specifically excluded.

Losses are caused by perils. Perils may be fire, vandalism, hurricane, theft, explosions, aircraft crash, breakage of glass, ice, auto, etc.

Contents-Personal Property The contents of your home are also covered. We'll provide you with an inventory sheet to list your personal property and values. The amount of coverage provided is normally half the amount you carry on your home, but can be increased where needed.

Certain property has specified limits of coverage. The inventory list will help us determine if you need extra coverage for those items.

We can also include "Replacement Cost" coverage for your personal property.

Earthquake Coverage In most cases coverage can be added to the homeowners policy coverage in the event an earthquake causes loss or damage to your home and/or contents.

Flood Insurance Flood coverage is provided through a separate policy provided by one of several leading carriers on behalf of the National Flood Insurance Program.

Loss of Use In the event you cannot occupy your home after an insured loss occurs, this coverage provides payment for temporary living quarters while you are waiting for repair work to be completed. Additional expenses such as food and laundry would be paid as well.

Medical Payments Another included coverage is for bodily injury medical payments to a non-policy holder. Medical payments can be made to others (those not in your immediate family) up to the stated limit amount. This will often prevent going to court to determine "fault." The amount paid will cover many minor accidents regardless of who was responsible.

Motorboat Coverage This policy includes coverage on your boat and motor for loss or damage incurred up to the stated policy limit.

Personal Articles Floater As an "endorsement" to your homeowners policy, this coverage would insure those items not normally covered under the personal property contents part of your policy. It provides broader coverage at higher limits than found in the standard policy and is designed for higher value property such as jewelry, furs, antiques, collections, etc.

Personal Injury This endorsement provides coverage in the event you are held personally liable for: false arrest, detention or imprisonment, malicious prosecution; libel, slander or defamation of character; invasion of privacy; wrongful eviction or wrongful entry.

Personal Liability Homeowners policies cover claims for bodily injury or property damage for which you are legally responsible. This normally excludes auto and business related claims. You would be covered up to the stated liability limit for each accident.

Personal Umbrella Liability A personal umbrella policy is a liability policy that picks up where the basic personal liability policy ends. These policies provide up to $1 million or more in personal and automobile liability coverage and are an additional amount of insurance.

Replacement Cost Replacement cost insurance coverage provides you with the necessary funds to repair or replace your property at today's costs.

Renters Coverage A Renters Policy (or tenants insurance) provides coverage for your personal property and liability in a dwelling that you rent.

Coverage for your property can be "broad perils" as opposed to being limited to certain types of losses. You should be aware of the differences between the available policy types.

A limited policy will specify the types of losses for which you will be covered. A "broad perils" policy pays for fire, vandalism, hurricane, theft, explosions, aircraft crash, breakage of glass, ice, auto and other perils that cause loss or damage to your personal property.

Contents-Personal Property Certain items of personal property have specified limits of coverage. Additional limits can be added through the addition of an endorsement to the policy.

Loss Of Use In the event you cannot occupy your home after an insured loss occurs, the policy provides for payment of temporary living quarters while you are waiting for repair work to be completed.

Medical Payments An included coverage is for medical payments to others (those not in your immediate family) up to the stated limit. The amount paid will cover many minor accidents that occur on or in your rented property, regardless of who was responsible.

Personal Articles Floater This is an "endorsement" to your renters policy. It provides coverage at higher limits than offered in the standard "renters" policy.

Personal Injury This provides coverage in the event you are held personally liable for: false arrest, detention or imprisonment, malicious prosecution; libel, slander or defamation of character; invasion of privacy; wrongful eviction or wrongful entry.

Personal Liability A renters policy also covers claims for bodily injury or property damage for which you are legally responsible. This normally excludes auto and business related claims. You would be covered up to the stated liability limit for each accident.

Personal Umbrella Liability A personal umbrella policy is a liability policy that begins where the basic personal liability policy ends generally providing $1 million or more in additional coverage at very affordable rates.

Replacement Cost Replacement cost insurance coverage provides you with the necessary funds to replace your personal property at today's costs and eliminates depreciation when settling a loss to your covered property.