Basic Home Insurance Terms that You Should Know

Make sure you know these essential homeowners insurance definitions.

If it is your first time getting homeowners insurance, then you might be feeling confused and overwhelmed.  The industry terms that your agent throws around probably isn't helping the situation either.  To ensure that you are on the same page when it comes to your home coverage, here are some of the important terms that you should know.

Deductible

Your deductible is the amount of money that you agree to pay towards a claim before your insurance coverage kicks in.  Deductibles are a way for the policyholder and insurer to share the cost of coverage.  Typically, assuming a higher deductible means lower insurance premiums because you are assuming more responsibility for claims.

Liability Insurance

One of the main types of coverage included in your home policy is liability insurance.  Liability insurance protects you and your family from legal claims that arise due to the following:

• Third-party injuries that take place on your property
• Third-party property damage that takes place on your property
• Injuries that you or a family member accidentally cause off-property
• Property damage that you or a family member accidentally cause off-property
• Pet-related injuries or damages (assuming that your insurance provider offers coverage for your pet's breed)

Liability insurance will cover the medical and compensation costs of affected parties.  This type of insurance will also cover the cost of your legal defense should the affected parties decide to sue.

Umbrella Policy

An umbrella policy is a supplemental form of insurance that provides excess liability coverage for the policyholder.  The coverage offered by umbrella policies extends past the coverage limits of your homeowners insurance policy to ensure that you do not have to pay out of pocket for particularly expensive liability claims.

Dwelling Protection

Dwelling protection is one of the main coverages included in home insurance policies.  This portion of your policy offers coverage for the physical structure of your home and all the components that are attached to the home.  This includes things like flooring, cabinetry, fireplaces, attached garages, deck, and so on.  Your dwelling protection will help you pay to repair the damages your home sustains during a covered peril, such as a storm, fire, break-in, and so on.

Other Structures Protection

This refers to the coverage you have for structures on your property that are not directly attached to your home.  For instance, other structures can refer to things like fences, carports, sheds, and so on.  Other structures protection will usually offer coverage up to 10% of your total dwelling protection.  So, if your policy offers $250,000 in dwelling coverage, then you will have $25,000 of other structures protection.

While there are many other home insurance-specific terms that you may be unfamiliar with, these are some of the ones that you are most likely to encounter.  Do you need more help with your home insurance coverage?  If so, then contact the experts at the Scavone Insurance Agency Center LLC in White Plains, New York today.  We are ready to assist you with all your insurance needs.