Deductible: A homeowners insurance deductible is the amount of money a homeowner must pay out of pocket before home insurance coverage kicks in. When the insurance company pays the claim, it will be for the total amount of the damage minus the amount of the deductible.
Liability Coverage: The personal liability coverage within your homeowners policy provides coverage to pay for claims of bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible.this covers you against lawsuits for bodily injury/property damage that you (or family members) cause to other people.
Replacement Cost: The value of most things depreciates over time, including your personal belongings and the materials used to build your home originally. A standard homeowner’s insurance policy will usually include replacement cost coverage for your dwelling and other structures, which means that the insurance company will pay for the covered structures to be rebuilt with materials at current costs up to your coverage limit. The same policy will usually only cover your personal belongings at actual cash value, or their current market value, including depreciation, unless you opt to pay more for an endorsement including replacement cost coverage for belongings.
Sub-Limits: A sublimit is part of, rather than in addition to, the limit that would otherwise apply to the loss. In other words, it places a maximum on the amount available to pay that type of loss, rather than providing additional coverage for that type of loss.
Riders: A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy to provide additional coverage. Riders tailor insurance coverage to meet the needs of the policyholder. Riders come at an extra cost—on top of the premiums an insured party pays. like a mini insurance policy, riders give added protection to certain items that can get excluded/have low limits on your homeowner’s insurance policy.
Do you have any questions about any of these terms? Are you in need of some advice when it comes to insuring your home? Contact Us!