damage or other covered loss could increase your living costs—you
may be paying for a hotel, restaurant meals or laundromat,
for example. In a standard homeowner insurance quotes policy, Loss of Use (Coverage
D) will reimburse you for any additional living expenses incurred
by you in an attempt to maintain a normal standard of living
if your home is made uninhabitable by a covered peril. See
important type of liability coverage, BI will pay legal damages
awarded for injury or death for which you are held legally
a property homeowners insurance quotes policy, "appurtenant structures"
are buildings on the same premises as the main, insured building.
Appurtenant structures like garages or barns on your property
and are usually covered by homeowner insurance quotes policy.
your property insurance contract, the arbitration clause provides
a means for settlement when you and your insurer cannot agree
on an acceptable claim payment. Appraisers representing each
party select a neutral arbitrator; a judgment by any two of
these three constitutes a binding settlement.
endorsement to a dwelling policy which provides theft coverage
for contents to a named insured, owner occupant.
a homeowners insurance quotes policy, "business personal property"
refers to items or "contents" owned by your business
or company—like the lap top you might bring home over the
weekend. Coverage is usually limited to $2,500.
"Dwelling", this is the part of your home insurance
policy that covers the home itself—frame, flooring and fixed
objects. The amount of Coverage A is the cost to replace the
structure of your home in the event of total loss. Other coverages
are usually based on a percentage of Coverage A.
part of your policy covers "Other Structures"—barns,
Property" covers your belongings automatically for 50%
of Coverage A.
of Use" takes into account expenses you'll have if your
home is uninhabitable because of a covered loss. It pays for
temporary lodging and living expenses.
Liability" covers you for your legal responsibility for
injury caused to others whether on or away from your own property.
Payments" pays medical costs if someone is injured on
your property. A homeowners insurance quotes policy automatically covers $1,000.
You can increase this coverage in $1,000 increments, up to
$5,000. In order to collect more than this, the injured party
must file for compensation under Coverage E.
most property policies cover only direct damages caused by
an insured peril, the "debris removal clause" covers
the cost of removing debris produced by the peril's occurrence.
For example, a hurricane sweeps through the state; a fallen
tree will be removed only if it lands on your house. Debris
Removal reimburses you for the cost of cleaning all the broken
limbs and rubble.
is a damage or loss resulting as a direct consequence of an
insured peril. For example, a computer lost in a fire is a
direct loss; the data destroyed inside the computer is considered
an indirect loss.
an insurance company offers its policies directly to consumers
through its own employees, it's called a "direct writer."
Electric Insurance Company is a direct writer.
are polices which cover a residence dwelling or building and
the personal property inside. You can buy dwelling forms which
vary by the degree of coverage they offer.
homeowner policies exclude coverage for earthquake damage.
People who are concerned about the risk of earthquakes can
add an Earthquake Endorsement to cover damages.
"easement" entitles its holder to specific interests,
such as a right of way, in land owned by someone else.
acronym for "Fair Access to Insurance Requirements,"
FAIR offers insurance to people in high-risk areas who might
otherwise be denied coverage. Reinsured by the United States
government, FAIR is a pooling plan with policies for fire
and allied perils.
property insurance, "fire" refers to the unintentional
or "hostile" occurrences of flame and combustion.
Damage caused by fire in your fireplace, for instance, is
not covered under your homeowners insurance quotes policy. But if your rug were
ignited by a spark from that same fireplace, you would be
construction using fire-resistive materials in its roof, floors
and exterior walls. See also
Modified Fire-Resistive Construction.
wall designed to contain or seal off fires in a building.
no one can make a building completely undamageable by fire.
Today, insurers use the term "fire-resistive" to
describe buildings which are practically resistant to most
temporary submersion, partial or complete, of ordinarily dry
land by water or mud. Floods are typically caused by an overflow
of waters, whether inland, tidal or from any accumulated runoff
from any source. Flood is excluded under a typical homeowner
sold to cover property owners from losses caused by floods
or flooding, usually offered in conjunction with a government
flood insurance plan.
most common form of housing construction, frame buildings
are made primarily of wood frames and joists.
Replacement Cost coverage on homeowners insurance means that
your home will be repaired to its value at the time of loss,
reguardless of the amount of coverage carried. For example,
you estimate your home to have a full replacement value of
$162,000. On your homeowners insurance quotes policy, you carry $162,000 coverage
for the structure. If you have guaranteed replacement cost
endorsement on your policy and the home is lost in a fire
and the house costs $168,000 to rebuild, the policy will pay
property and liability insurance that covers homeowners and
renters for damage to or theft of their property and liability,
in case they are responsible for injury to another person.
Cost of Construction Insurance
added as an endorsement to homeowner policies, "increased
cost of construction insurance" covers the additional
costs of building repair or reconstruction when you rebuild
with more expensive services, materials and techniques required
by local ordinances.
insurance terms are tailored to the nature and use of the
property as it exists when the policy is written. Should you
introduce dangerous materials or activities into the property,
like making fireworks, you will have added an increased hazard
whose liabilities would not be covered by your policy.
known as consequential loss or damage, indirect loss results
from, but is not caused directly by, a peril. If your business
property burned down, for instance, the property itself is
a direct loss, while the lost business revenues would be considered
an indirect loss.
Guard Coverage" provides automatic periodic increases
on the building's property insurance, to reflect the effects
of inflation on building replacement expenses.
property flaw or fault which causes its own destruction. Damages
from inherent vices are usually not covered through insurance.
policies or endorsement forms are broadened through legislation
or rating authority rulings—and do not require premium increases—the
"liberalization clause" automatically includes the
broadened coverage in similar, existing policies.
of Use Coverage
your home becomes uninhabitable because of an insured peril,
Loss of Use (Coverage D) provides compensation for additional
living expenses incurred in an attempt to maintain a normal
standard of living. Loss of Use is automatically included
as 20% of the Replacement Cost amount you carry in Coverage A.
If your home were covered for $200,000, for example, Loss
of Use coverage would provide up to $40,000 for additional
living expenses. See Additional
protect lenders or lien holders, this clause extends coverage
to parties with an insurable interest in your property, most
often the institution holding your mortgage.
Refers to buildings
constructed from noncombustible materials such as masonry
walls of brick, cinder block, stone, tile, or other similar
materials, and floors and roofs made of metal or other noncombustible
homeowners insurance quotes policy for a permanently situated mobile home.
featuring exterior walls, floors and roofs made of fire-resistive
materials such as masonry or metal.
policies covering mortgaged property, the "mortgage clause"
protects the interests of the mortgagee for loss reimbursement
and other rights of recovery, regardless of any acts or neglect
by the insured.
lender or creditor, typically a bank, who holds the mortgage,
and lends money secured by the value of the mortgaged property.
the homeowner who, as debtor, receives money in return for
a property mortgage granted as a security for the loan.
Perils Insurance covers specific perils listed in a policy,
as opposed to an "all-risk insurance" covering all
losses except the ones excluded by name in the policy.
Flood Insurance Program (NFIP)
program backed by the United States government to provide
flood insurance for fixed property. The NFIP writes policies
directly and offers reimbursement to private carriers offering
insurance rates reflect the way the property is used. In general,
"owner occupied" homeowner policies are less expensive
than "non-owner occupied" policies.
you can obtain for personal property or "contents"
which are away from the principle, insured property. In most
cases, the amount of this coverage is limited to a percentage
of the property's total coverage.
detached structures, such as a garage or tool shed, sharing
property with the insured dwelling. Under a homeowners insurance quotes policy,
"other structures" are automatically covered for
10% of the limit chosen for
of your property, such as furniture, clothing and consumer
electronics, other than real estate property. Your homeowner
policy covers the personal property of you and your family
damage to your property.
discrimination against a risk based solely on its location.
For example, the denial of property insurance to the owner
of a building located in a depressed area.
Protection against loss of rental value or actual rent should
the owner's insured property suffer damages prohibiting property
use or tenant occupation.
for the cost of replacing damaged property at the time of
loss with that of similar kind and quality. If you carry replacement
cost coverage and have a loss, the insurer pays for the cost
of a new replacement, minus any policy deductible.
you, the insured, live. In homeowner insurance, this includes
the dwelling, grounds and other structures, or that part of
any other building in which you live.
activity by more than one person. The number of persons it
takes to constitute a riot varies by state. Your policy may
cover riots through extended coverage or direct reference.
belongings that are worth more than the limits of liability
set in your policy can be insured by adding this endorsement.
special form of earth movement, covered by some homeowner
insurance, referring to the sudden collapse or sinking of
land into empty, underground spaces eroded by water. Most
other forms of earth movement remain excluded from ordinary
opposed to fire damage caused by combustion, heat or burning,
this is damage attributable to the smoke itself.
your policy, you may choose to cover certain items for a specific
amount. In the event of loss, the insurer pays the stated
amount regardless of the property's actual value. If, for
example, you insured a painting for a stated amount of $15,000,
in the event of theft you would recover the $15,000 (minus
your deductible), even if the painting had accrued value after
the policy had been signed.
term for Renters Insurance. See HO4.
without people occupying or living within it. As opposed to
vacant property, unoccupied property may hold furnishings.
Unoccupancy beyond a specified period of time is prohibited
by the standard homeowners insurance quotes policy. See
building with nothing in it. While an "unoccupied"
building is defined by not having people in it, a "vacant"
building is also devoid of furnishings and other items. Vacancy
beyond a specified period of time is prohibited by the standard
homeowners insurance quotes policy. See: Unoccupied.
and Malicious Mischief (V&MM or VMM)
Your homeowners insurance quotes policy
should automatically cover you for willful destruction or
damage performed by others to your property.