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      What Do These Home Insurance Terms Mean?

      Gaining a better understanding of the details of your insurance documents should help you make more informed decisions about the coverages, special endorsements, limits, deductibles, and more that you may require to protect your property and belongings.

      Explaining the terms you may find in your home insurance policy is just one of the ways Austin Insurance helps you make better decisions about what coverage is right for you and your property.

      Editor’s Note: This blog was originally published in January 2019 and has been updated with additional home insurance terms.

      When you read through your home insurance policy, it might seem like you’re trying to decipher some sort of secret language. And while that may feel like an overwhelming task, figuring it out is well worth your while. Gaining a better understanding of the details of your insurance documents should help you make more informed decisions about the coverages, special endorsements, limits, deductibles, and more that you may require to protect your property and belongings.

      But if solving puzzles isn’t your thing, don’t worry. The team at Austin Insurance is here to help you break the code. We have put together a glossary of many of the most important terms related to home insurance. As you look through the pages of your policy, we hope this list serves as a handy cheat sheet when you come across an unfamiliar term. And, if you uncover a term that’s not on this list, we are just a phone call away!

      A

      • Accident
        An unintentional, unexpected, and unforeseen event that results in loss, injury, or damage.
      • Act of God
        An unpreventable accident or event that is the result of natural causes, such as a thunder and lightning storm, a tornado, hail, or flooding.
      • Actual Cash Value
        An estimate of the fair market value of your property before a loss occurs. It is typically calculated by figuring out what it would cost to replace your property minus depreciation brought about by age, wear and tear, and other factors.
      • Additional Insured
        A person or party not automatically included as an insured under a home insurance policy that is included or added as an insured under the policy at the request of the named insured or policyholder. The protection afforded the additional insured may be more limited than the policyholder’s.
      • Additional Living Expenses
        Coverage for costs such as hotel bills, restaurant meals, and other living expenses if you’re unable to live in your home because it has been damaged. Also called Loss of Use.
      • Adjuster
        An insurance company employee or an outside firm who is assigned to settle your home insurance claim. This person will evaluate your claim and then make a recommendation for payout based on the coverage in your homeowners insurance policy contract.
      • Agent
        An authorized representative of an insurance company who sells and services insurance contracts.
      • Application
        This form, which is created by an insurer and filled out by a person who wants insurance, collects information about the person looking to get insurance and the property they want to insure. An insurer uses this information when deciding whether to issue a home insurance policy.
      • Appraisal
        This term has three different meanings. The first is a determination by a licensed appraiser of the fair market value of a home, or how much that home should sell for based on factors such as the state of the housing market and the value of other homes in the neighborhood. The second is a professional, formal, written estimation of the costs of parts and labor required to repair your home’s damages; this type of appraisal may be completed by an insurance adjuster, a contractor, or an engineer. The third is an appraisal of higher-value belongings, such as furs or jewelry, so they can be added to a home insurance policy as Scheduled Personal Property.
      • Appraisal Clause
        A common provision of insurance policies for more than a century, an appraisal clause usually appears in the conditions section of your home insurance policy. It is designed to provide a nonjudicial means of resolving a dispute between a policyholder and their insurance company when the two parties are unable to agree on the amount of money that the insurer should pay to settle a claim.
      • Appreciation
        An increase in the value of a home over time due to economic factors such as inflation, market conditions, and changes in the neighborhood. The opposite of Depreciation.
      • Assessed Value
        A calculation, typically done yearly, by a government entity to determine how much a property is worth for tax purposes, but not generally used by insurers to appraise a home or determine a home’s replacement cost.

      B

      • Basic Form Insurance Policy
        Also known as an HO-1 policy, a basic form homeowners policy covers only named perils and provides minimum coverage for the most common losses that can take place. Under this type of policy, a loss must be named in the policy for it to be covered.
      • Betterments
        Any change, such as an addition, alteration, installation, or repair, that increases a property’s value. Also called Improvements.
      • Blanket Insurance Policy
        A single policy that covers more than one person or piece of property and has one monetary limit.
      • Boat Insurance
        A policy that may provide financial protection for many types of vessels, including inboard and outboard motorboats, sailboats, utility boats, cruisers, saltwater fishing boats, performance boats, and more. It typically includes coverage for physical damage to your vessel as well as liability coverage if your boat causes injury to others or damage to another person’s property.
      • Broad Form Insurance
        Also known as an HO-2 policy, a broad form homeowners policy is an upgrade from the basic form homeowners policy, or HO-1. It typically covers the structure of your home at its replacement cost value and your personal property at its actual cash value. An HO-2 also may protect your home and personal belongings against additional perils not included in an HO-1.
      • Bundle and Save
        A popular discount that you may be eligible for if you bundle your car and home, condo, or renters insurance policy with the same insurance company.

      C

      • Cancellation
        The termination of your home insurance policy during the policy term.
      • Carrier
        The insurance company that underwrites and issues your home insurance policy. The term refers to the fact that the company carries (or assumes) certain risks for you, the policyholder.
      • Casualty Insurance
        This type of insurance covers the legal liability for losses caused by injuries to others or property damage caused by you or other members of your household.
      • Claim
        A policyholder’s request for their insurance company to cover a loss related to their home.
      • Claimant
        The person who submits a claim for a loss.
      • Coastal Insurance
        This type of insurance is specially designed for homes located on or near a shoreline that are typically at higher risk for damage caused by wind, flooding, storm surge, erosion, and more.
      • Conditional Receipt
        Given to policyholders when they pay a premium at the time of application. Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt.
      • Condo Insurance
        A type of homeowners insurance, referred to as an HO-6, that provides condominium unit owners with important liability and property coverage that is typically not included in their condo association’s master condo insurance policy.
      • Contents Coverage
        The part of your home insurance policy that provides coverage for your personal belongings if these items are stolen or destroyed by a fire, hurricane, or other peril covered in your policy. The coverage limits for Personal Property are usually 50%–70% of your dwelling coverage amount. Also called Personal Property Coverage and found under Coverage C in your homeowners policy.
      • Contract
        A document that represents an agreement between an insured and an insurer. A home insurance policy is a type of legal contract.
      • Coverage
        A term used by insurance companies to mean either the dollar amounts of insurance purchased (e.g., $500,000 of dwelling coverage) or the type of loss covered (e.g., coverage for home systems equipment breakdown).
      • Covered Event
        Any event that falls within the bounds of your policy.

      D

      • Damage
        Physical harm or loss of property.
      • Damages
        The amount of money one party is legally obligated to pay another party.
      • Declarations Page
        The form attached to the front of your home insurance policy that summarizes the policy’s terms, coverage limits, endorsements, premium, and more. Often referred to as the “dec page” for short.
      • Deductible
        An amount that an individual must pay for covered services before the insurance company will begin to make payments.
      • Depreciation
        A decrease in the value of a home over time that may be affected by market conditions, wear and tear, and changes in the neighborhood. The opposite of Appreciation.
      • Discounts
        A term that refers to the many ways you might be able to save money on your home insurance, like bundling your car and home insurance policies, installing a security system, or being claims-free. Home insurance discounts vary by insurance company, and you might not be eligible for all savings opportunities.
      • Dwelling
        A physical structure for people to live in.
      • Dwelling Coverage
        The part of a home insurance policy that typically helps a homeowner pay for the cost of repairing or rebuilding the physical structure of their home, as well as any attached structures, installed fixtures, and permanently attached appliances, if damage is caused by a covered event. Also may be referred to as Coverage A or Hazard Insurance in your home insurance policy.
      • Dwelling Fire Insurance
        A policy that provides coverage for a home you own but that is not your primary residence, such as a vacation cottage or investment rental property. This coverage typically includes the home’s detached structures, like a garage, deck, porch, shed, or fence, but may not provide liability coverage or protection for possessions inside the home.

      E

      • Effective Age
        An estimate, usually provided by an appraiser, of a building’s age based on its physical condition. The actual age may be higher or lower than its effective age.
      • Effective Date
        The date your coverage goes into effect.
      • Endorsement
        An add-on to a home insurance policy that changes or supplements the coverage provided. Sometimes called a Rider.
      • Equipment Breakdown Coverage
        An endorsement that can be added to your home insurance policy to help pay for repairing and replacing critical home systems if they break down due to sudden or accidental mechanical or electrical issues. Also called Home Systems Protection Endorsement.
      • Exclusions
        A type or cause of loss that is specifically not covered by your home insurance. Your policy should have a section labeled “Exclusions” that will list what they are.
      • Expiration Date
        The date on which an insurance policy expires. Also called X-date.
      • Extended Replacement Cost
        An endorsement that typically extends your dwelling coverage by 10%–50% of the cost to rebuild your home (not the actual market value of your home). Increasing the dwelling coverage amount may safeguard a homeowner against paying excess costs out of pocket if their home is damaged or destroyed by a covered event.

      F

      • File a Claim
        A request you make to your insurance company for payment of a sum of money, according to the terms of an insurance policy, when your home or belongings are damaged or destroyed.
      • First Party Loss
        A situation where only the insurer and insured are involved.
      • Floater Insurance
        A type of insurance policy designed to cover valuable personal property that is easily movable, like jewelry, stereo equipment, and fine art. These policies generally cover one individual item, so if you have several items you want to cover, you will need a separate floater policy for each of them. Since homeowners insurance typically provides limited coverage for many of these types of items, adding a floater policy may ensure an item will be replaced at its full value in the event it is stolen, lost, or damaged, regardless of where this loss occurs.
      • Flood Insurance
        A separate insurance policy that may help you cover the expense of repairing or rebuilding your home and replacing personal belongings if they are water-damaged by a covered flood event. Some mortgage lenders require flood insurance if a home is located in a specific flood zone or high-risk area.
      • Flood Zone
        Every home is in an area with some flood risk, but not all areas have the same level of risk. Knowing what flood zone category your home is in will tell you whether your property is located in a high-risk, low-risk, or moderate-risk flood area. Flood zones are typically a key factor in determining home insurance requirements and costs. If a home is located in a specific flood zone or high-risk area, a mortgage lender may require the homeowner to secure flood insurance.
      • Form
        Any insurance document prepared in a prescribed arrangement of words and layout. Riders, policies, endorsements, and applications are all forms.

      G

      • Grace Period
        Refers to a period of time offered by some insurers, in which the insured’s home insurance policy does not lapse but instead remains in effect even if a premium payment is missed. Grace periods for home insurance typically last 10 to 30 days.
      • Group Marketing Programs
        Special insurance savings programs that an insurance company might offer to members of a group, such as a civic organization, motor club, credit union, or an employer. As a member of an approved group, you may be eligible for reduced policy rates.
      • Guaranteed Replacement Cost
        An endorsement that, if added to your home insurance policy, gives you the broadest level of dwelling coverage. If your home is destroyed by a covered event, having guaranteed replacement cost coverage typically means that your insurance company will pay to fully rebuild your home, without any limits. Not all insurance companies offer this type of coverage, and not all homes are eligible.

      H

      • Hazard
        A factor or activity that makes the occurrence of a loss more likely, such as having a swimming pool or employing household staff. Before deciding to provide you with coverage, an insurer will consider the particular hazards that may make you a better or worse risk than other homeowners to insure.
      • Hazard Insurance
        The part of a home insurance policy that typically helps a homeowner pay for the cost of repairing or rebuilding the physical structure of their home, as well as any attached structures, installed fixtures, and permanently attached appliances, if damaged or destroyed by a covered event. Also may be referred to as Dwelling Coverage or Coverage A in your home insurance policy.
      • Historic Home Insurance
        A type of homeowners insurance that is specially designed to provide coverage for older homes and historic residences. These properties often don’t qualify for a standard home insurance policy because they are often constructed with ornate features, outdated electrical work, and building materials that are no longer common or up to code. Because historic homes are viewed as being higher risk, these homes can be more expensive to insure than a standard home. Also referred to as an HO-8 policy.
      • Home Cyber Protection
        Optional home insurance coverage that may help you or others in your household recover from the financial impact of a cyber-related attack, including cyber extortion, online fraud, data breach, and cyberbullying.
      • Home Inventory
        A home inventory is a list of all the items, especially valuables, in and around your home. If your home is damaged or destroyed, having an updated home inventory that you can provide to your insurance professional may help the insurance claims process go more smoothly.
      • Home Systems Protection Endorsement
        An endorsement that can be added to your home insurance policy to help pay for repairing and replacing critical home systems if they break down due to sudden or accidental mechanical or electrical issues. Also called Equipment Breakdown Coverage.

      I

      • Identity Recovery Coverage
        This add-on to your home, condo, or renters insurance may help you pay for many of the expenses you or a member of your household would typically incur if you are the victim of identity theft.
      • Improvements
        Any change, such as an addition, alteration, installation, or repair, that increases a property’s value. Also called Betterments.
      • In Force
        Insurance on which the premiums are being paid or have been fully paid. The policy has not expired.
      • Independent Agent
        An agent who represents more than one insurer.
      • Inflation Guard
        An endorsement that automatically increases your policy’s dwelling coverage limit based on current construction and labor costs in your area. This increase typically happens at the time of your home insurance annual renewal and is generally about 2%–4%. Inflation guard coverage is usually built into a standard homeowners insurance policy but sometimes requires a separate endorsement.
      • Insurance
        A formal social device for reducing risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a consideration, to pay for the loss in the amount specified in the contract.
      • Insurance Binder
        A temporary insurance form that is issued at the time of the application providing proof of coverage. It expires at the end of a specific time period or when the permanent policy is issued by the company.
      • Insurance Policy
        The printed form which serves as the contract between an insurer and an insured.
      • Insured
        The person(s) covered by the home insurance policy. Also called the Named Insured, Policyholder, or Policy Owner.
      • Insurer
        The party that provides insurance coverage, typically through a contract of insurance.
      • ISO Fire Rating
        Provided by the Insurance Services Office and based on several factors, particularly the local fire department and water supply, this score reflects how prepared a community and area is for fires. An ISO fire rating may be considered by an insurer when calculating a home insurance premium.

      J

      • Jewelry Insurance
        A special policy you can purchase to protect against jewelry losses, like theft, damage, or disappearance, that may not be covered by your standard homeowners or renters insurance or by warranties.
      • Judgment
        An official designation entered on a court’s docket signifying that an injured claimant has prevailed in a case against you, the defendant, if you are sued as a result of an accident, like a slip and fall on your property. A judgment typically means you are legally required to compensate the claimant with a monetary award.

      K

      • Kit Home
        A type of home that is typically sold and made up of separate components that are assembled by the buyer. Kit homes may require specialized homeowners insurance.

      L

      • Lapse
        A lapse in homeowners insurance coverage may occur if you do not pay your insurance bill. After a certain amount of time of nonpayment, your home insurance may be canceled, creating a lapse. There are other reasons a lapse may occur, including misrepresentation on an application or the insured becoming too high-risk to insure after numerous claims. If you allow a lapse in coverage, it can lead to higher home insurance premiums, difficulty finding coverage, or a situation where you have to pay for a loss out of pocket because you are uninsured.
      • Lessee
        A tenant, such as a renter, who has signed a lease to live in another’s property.
      • Lessor
        A person, such as a landlord, who rents their property to another under the terms of a lease.
      • Liability Insurance
        This type of policy helps protect you against claims of negligence, personal injury, or property damage that occur on your property or that result from your activities.
      • Limits
        Each type of coverage on your homeowners insurance policy has a limit, which is the maximum amount your insurance company agrees to pay for damages.
      • Loss
        Any measurable dollar cost of damage and/or injury suffered by a person.
      • Loss Assessment Coverage
        If you live in a home that has shared common areas and damage occurs to the common areas, this coverage can provide you with financial protection for the part of the damage you are responsible for based on an assessment by the homeowners association.
      • Loss History
        An insured’s history of losses (or claims) and their values, including those filed with the company they are with currently as well as previous insurers. An insurance company typically considers your loss history when underwriting a new policy or considering a renewal of an existing policy.
      • Loss of Use
        Coverage for costs such as hotel bills, restaurant meals, and other living expenses if you’re unable to live in your home because it has been damaged by a covered event. Also called Additional Living Expenses.

      M

      • Manufactured/Mobile Home Insurance
        Specialized homeowners insurance coverage for manufactured or mobile homes.
      • Market Value
        A term that describes what your home could be sold for in the current market.
      • Medical Expenses
        Reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral expenses. (The insurance company defines what is reasonable.)
      • Medical Payments Coverage
        This part of your standard home insurance policy typically helps cover medical expenses if someone other than a member of your family is accidentally hurt on your property, no matter whose fault it is. For smaller personal injuries, having Medical Payments Coverage may help prevent a lawsuit for compensation. May be referred to as MedPay or Coverage F in your homeowners policy.
      • Misrepresentation
        The act of providing false or misleading information to an insurer when you are an insurance applicant or a policyholder.
      • Mutual Insurance Company
        An insurance company that is owned by its policyholders, as opposed to stockholders.

      N

      • Named Insured
        The person(s) covered by the homeowners insurance policy. Also called the Insured, Policyholder, or Policy Owner.
      • Named Peril Policy
        This type of home insurance policy only provides coverage for damages to your property if caused by specific hazards named in your policy.
      • National Flood Insurance Program (NFIP)
        The National Flood Insurance Program provides flood insurance to property owners, renters, and businesses in participating communities to help reduce the socioeconomic impact of floods. It is managed by the Federal Emergency Management Agency (FEMA). The best way to gain access to the NFIP program is through your local insurance professional.
      • Negligence
        Failure to use a reasonable amount of care, whether in doing something or not doing something, when such failure results in injury or damage to another.
      • Non-Renewal
        A decision by your insurance company to not extend your coverage beyond the current policy term. This typically happens if you default on your policy payments or have too many claims against your policy in a short amount of time. Companies can only non-renew coverage after appropriately notifying the policyholder.

      O

      • Offer and Acceptance
        When applying for home insurance, the first step is to get a proposal form from the insurance company. You fill in the requested details and send the form to the company, sometimes with a premium check. This is your “offer.” If the insurance company agrees to insure you, this is called “acceptance.”
      • Open Perils Policy
        This type of home insurance policy provides coverage for all losses or damages except those that are specifically excluded in your policy.
      • Other Structures Coverage
        The part of your home insurance policy that provides coverage for structures on your property that are detached from your home, such as a barn, tool shed, or gazebo, if they are damaged by a covered event. Typically, the coverage limit for other structures is 10% of your dwelling coverage, although higher amounts may be available. Look for Coverage B in your home insurance policy for more details.

      P

      • Peril
        A specific risk or potential cause of a loss to your home or belongings, such as fire, windstorm, lightning, hail, smoke damage, theft, or vandalism.
      • Personal Liability Coverage
        The part of your home insurance policy that provides coverage that typically helps pay for the cost of defense against claims of negligence for bodily injury or property damage to others as long as the actions were not intentional. Any court awards will also be covered under personal liability up to the limit stated in your policy documents. Look for additional details in Coverage E in your homeowners policy.
      • Personal Property
        The personal belongings you own, such as your clothes, furniture, sports equipment, and electronics, that are not buildings.
      • Personal Property Coverage
        The part of your home insurance policy that provides coverage for your personal belongings if these items are stolen or destroyed by a fire, hurricane, or other peril covered in your policy. The coverage limits for personal property are usually 50%–70% of your dwelling coverage amount. Also called Contents Coverage and found under Coverage C in your homeowners policy.
      • Policy
        The printed document that is issued to you by your insurance company stating the terms of your home insurance contract.
      • Policy Owner
        The person(s) covered by the home insurance policy. Also called the Insured, Named Insured, or Policyholder.
      • Policyholder
        The person(s) covered by the home insurance policy. Also called the Insured, Named Insured, or Policy Owner.
      • Policy Term
        The period for which your home insurance policy will remain active. Most homeowners policy terms are 12 months.
      • Preferred Risk
        An insured who is considered to have lower potential for loss frequency and severity than the standard or “average” risk upon which premium rates are calculated. Policyholders deemed a Preferred Risk generally pay a lower premium.
      • Premium
        The amount of money an insurance company charges, based on a given rate, to provide the coverage described in the policy for a specified period of time, generally one year.
      • Primary Policy
        The insurance policy that pays first when you have a loss that’s covered by more than one policy.
      • Property Insurance
        Insurance protection against the loss or damage to real property (e.g., a structure such as a building) or personal property (e.g., furniture) caused by specific perils covered in the insurance policy or contract.
      • Provisions
        Statements contained in an insurance policy that explain the benefits, conditions, and other features of the insurance contract.

      Q

      • Qualifying Event
        An event that triggers an insured’s coverage.
      • Quote
        An estimate of the premium you might pay for your home insurance policy. A quote is based on information you provide to an insurance agent, such as the size, location, and condition of your home; your claims history; your deductible; and other factors. A quote is not an offer for insurance or an insurance contract.

      R

      • Reinstatement
        Putting a lapsed policy back in force by producing satisfactory evidence of insurability and paying any past-due premiums required.
      • Renewal
        An extension of an existing policy for another policy period.
      • Renters Insurance
        An insurance policy specifically designed for renters that provides property and liability coverage. Called an HO-4 policy.
      • Replacement Cost Insurance Coverage
        This type of home insurance policy is the most popular level of coverage and includes limits on how much your insurance company will contribute financially to repairing or rebuilding your home if it is destroyed by a covered event. Costs that exceed this predetermined limit will generally have to be paid out of pocket by the insured.
      • Replacement Cost Value
        The actual cost to replace an item or structure to its pre-loss condition. This can be different from the market value of an item and is typically not the same as the actual cash value, which includes a deduction for depreciation.
      • Replacement Policy
        A new policy written to take the place of one currently in force.
      • Representation
        Statements made by an applicant on their application for insurance that they represent as being substantially true to the best of their knowledge and belief but that are not warranted as exact in every detail.
      • Rider
        An add-on to a home insurance policy that changes or supplements the coverage provided. Also called an Endorsement.
      • Risk
        The chance of injury, damage, or loss.

      S

      • Scheduled Personal Property
        An endorsement that may offer higher limits and broader protection for your high-value items such as jewelry, cameras, musical instruments, sports memorabilia, rare collections, and fine art. A policyholder typically needs to provide an appraisal or proof of value to be eligible for this home insurance option.
      • Service Line Coverage
        This endorsement may provide coverage that helps you repair or replace service lines on your property, such as gas, power, water, data, and sewer piping or wiring.
      • Special Collections Insurance
        An add-on to a standard homeowners insurance policy to protect any collectibles you may own, such as antiques or fine art.
      • Special Form Insurance
        Also known as an HO-3 policy, a special form homeowners policy is the most common type of homeowners insurance policy and is more comprehensive than an HO-1 or HO-2 policy. It is considered “all-risk” coverage, which means you are covered for everything except the causes of loss that are specifically excluded in your policy. HO-3 policies cover your home at its replacement cost and your personal property at its actual cash value.
      • Standard Risk
        A person who, according to a company’s underwriting standards, is entitled to insurance protection without extra rating or special restrictions.
      • Subrogation
        The right of the company to step into the shoes of the insured, following payment of a claim, to recover the payment from a third party responsible for the loss. Subrogation is limited to the amount paid on the policy.
      • Substandard Risk
        A person or property that is considered a hazard because of condition, location, or some other factor that makes the risk higher than the standard or norm.
      • Surcharge
        A fee that is added to your home insurance premium by an insurer, typically because you have a claims history.

      T

      • Third-Party Loss
        A situation where someone other than the insurer and the insured is making a claim against the insured.
      • Title
        A legal document or certificate showing you are the owner of your home.
      • Total Loss
        If your home is completely destroyed or the cost to repair or rebuild it is higher than the policy limit, it is considered a total loss.

      U

      • Umbrella Policy
        A separate policy from your home, condo, or renters insurance that may provide an extra layer of liability coverage if you exceed the limits of liability in those primary insurance policies. There are typically several eligibility requirements for an umbrella liability policy, including that you need to have and maintain certain minimum liability limits on your car and home insurance policies.
      • Underinsured
        When the limits of an insured’s home insurance policy are less than what would be needed to cover a total loss, the person is considered to be underinsured.
      • Underwriter
        A company receiving premiums and accepting responsibility for fulfilling the policy contract. Also, a company employee who decides whether the company should assume a particular risk or the agent who sells the policy.
      • Underwriting
        The process of examining, accepting, or rejecting insurance risks, and classifying those selected, in order to charge the proper premium for each.
      • Uninsurable Risk
        A person who is not acceptable for insurance due to excessive risk.

      V

      • Vacant Home Insurance
        Insurance for an unoccupied dwelling.
      • Valuation Clause
        A provision that specifies a fixed amount of money a policyholder will receive from the insurance provider if a covered event occurs. The amount may be based on actual cash value, agreed value, or replacement cost, among other things.

      W

      • Water Backup and Sump Pump Overflow Coverage
        Additional home insurance coverage that may help you cover the costs of clean-up, repairs, or replacements if your home or personal belongings are damaged because of water leaking into your home due to a backed-up drain or an overflowing sump.
      • Without Prejudice
        Occasionally, claims may be paid that the underwriter feels are not actually covered by the policy. Such payments are “without prejudice” and are not to be treated as a precedent for future similar claims.

      X

      • X-date
        The expiration date of your homeowners insurance policy.

      Y

      • Yacht Insurance
        A special type of boat insurance policy for pleasure yachts that typically includes coverage for physical damage to your vessel as well as liability coverage if your boat causes injury to others or damage to another person’s property.

      Z

      • Zero Carbon Homes
        A type of eco-friendly home that does not emit greenhouse gasses, particularly carbon dioxide, into the atmosphere. These homes use excellent insulation and nearly airtight seals on the windows and doors to keep them from emitting carbon dioxide. Additionally, all energy consumption is purely electric, helping eliminate emissions from traditional sources like natural gas.
      • Zero Energy Ready Home
        Zero Energy Ready Homes meet rigorous efficiency and performance criteria. Many utility agencies as well as the federal government are offering financial incentives to help homeowners recoup the initial cost of developing a Net Zero energy-efficient home. Some insurance companies are getting in on the act as well, offering credits for homes made with sustainable building materials; alternative energy sources, like wind or solar power; Energy Star appliances; non-toxic paints, carpeting, and flooring; and plumbing and fixtures with water-saving features.

      At Austin Insurance, we believe the best way to review the details of your home insurance policy and help you understand your coverage is to do so in person or over the phone. However, we also know this isn’t always possible for our busy clients. So, in the meantime, we put together this glossary of terms, as well as a similar one for car insurance terms, that you can refer to any time you need to.

       

      To experience our personalized approach to home insurance, please call the Austin Insurance team today at 781-447-5561.