Actual Cash Value – Is the value of your home minus a deduction for age, wear and tear and other factors
Building Ordinance - This is the limit the insurance company would pay for the extra expense of rebuilding to comply with ordinances or laws, often building codes, that did not exist when the building was originally built.
Deducible - Your deductible amount is the amount of money you are responsible for as the insured before the insurance company begins payment.
Dwelling Coverage – This is the limit that the insurance company would pay to replace your home in the event of a covered loss. It is usually calculated based your home’s information such as sq. footage, roof type, flooring type, and other factors to generate the value needed to replace your home should it be damaged due to a covered peril.
Extended Replacement Cost – This coverage type pays for loss to your home on an extended replacement cost basis up to the coverage limit you choose plus 25% to 200% additional coverage for increases in construction costs or other factors. This would mean, if you have $250,000 dwelling coverage, The insurance company would allow an additional 25% to 200% in coverage to repair or replace your home.
Endorsement - A written document attached to an insurance policy that alters the policy’s coverage, terms, or conditions. This is also sometimes called a rider.
Floater - This is usually an endorsement to the policy in order to cover either one or many jewelry items of significant value. They are covered up to their appraised value and the endorsement serves as a mini policy to cover this item separately to its assessed value.
Jewelry Endorsement - This is usually an endorsement to the policy in order to cover either one or many jewelry items of significant value. They are covered up to their appraised value and the endorsement serves as a mini policy to cover this item separately to its assessed value. This type of endorsement also applies to other valuables such as guns, fine china, collectibles, etc.
Loss of Use - This is the limit the insurance company would reimburse you for additional living expenses to maintain your normal standard of living. This would be granted should your property be rendered uninhabitable due to a covered loss.
Medical Coverage – This is the limit the insurance company would pay for any monies incurred by any non-household member for bodily injury on your premises. This is basically a medical aid to others should they have a bodily injury at your residence such as a slip and fall, etc.
Personal Liability - This is the limit the insurance company when you are legally obligated to pay for bodily injury or property damages to others resulting from events such as Acts of your pets, Use of your premises (Such as swimming pools), Unintentional acts committed by your or a qualified household members (either on or off your premises). Your personal liability coverage also includes coverage for expenses such as attorney fees, court costs, investigator fees and witness charges when defending you in court. In most cases they will pay you for your time off of work when you are asked to appear in court. All policies handle this differently so it is important to consult with your agent to have a clear definition of how your policy covers personal liability.
Personal Property – This limit is the maximum the company would pay to replace any of your personal items such as TV, clothing, jewelry and cash in the event of a covered loss.
Personal Umbrella - A personal umbrella provides increased liability coverage to your auto policies, home policies and recreational vehicles. Once your limits on these policies have been exhausted, your umbrella policy will extend liability coverage up to its policy limits to continue to protect you against claims and defense costs due to a covered loss.
Separate Structures – This is the limit the insurance company would pay to repair or replace any separate structures in the event of a covered loss. Separate structures include a shed, separated garage, gazebo, etc.
Replacement Cost – This coverage type pays for loss to your home on a replacement cost basis up to the coverage limit you choose. This would mean, if you have $250,000 dwelling coverage, this is the max that the insurance company will pay. No depreciated value. Coverage is given up to the policy limit on your policy’s declaration page.
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DISCLOSURE: All entries by QuoteFishing.com are for informational purposes only and it is always recommended that you consult with your local insurance agent as coverage, definitions and claims procedures may differ from state to state.
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