Homeowners Insurance Glossary

• A.M. Best
  A.M. Best Company was founded in 1899 and is a credit rating organization that serves the insurance industry. Policyholders can refer to A.M. Best's ratings to assess the financial strength of insurance companies.
• Auto insurance
  Auto insurance is a type of insurance that insures a policyholder against losses incurred to their vehicle or from damages caused while operating their vehicle, in a covered claim.
• Contents coverage
  Contents coverage is a standard type of coverage offered under a homeowners insurance policy that protects the policyholder in the event their personal possessions are lost or damaged in a covered claim.
• Deductible
  A deductible is a payment amount that a policyholder agrees to pay in the event of a loss before the insurer begins paying towards a covered claim.
• Dwelling coverage
  Dwelling coverage is offered under a standard home insurance policy to protect the homeowner against losses that occur to the structure of their home.
• Endorsement
  An endorsement (also known as a rider) is additional coverage that is added onto an insurance policy to provide additional coverage for specific items such as jewelry.
• Flood insurance
  Flood insurance is an insurance policy that protects a homeowner from flood damage that occurs in a covered claim to their home and/or personal property.
• Homeowners insurance
  Homeowners insurance is an insurance policy that protects a homeowner against losses that occur to their home. It also typically includes liability and medical payments coverage.
• Insurance agent
  An insurance agent is responsible for providing insurance consultation services and is required to be licensed in the states they are selling insurance in.
• Insurance claim
  An insurance claim is a request for payment issued by a policyholder to an insurance carrier in the event of a covered claim.
• Insurance policy
  An insurance policy is a contract issued to a policyholder by an insurer declaring coverage inclusions and exclusions.
• Liability coverage
  Liability coverage is a type of insurance coverage provided under a standard home insurance policy that protects the insured against financial loss in the event of a covered lawsuit.
• Loss of use coverage
  Loss of use coverage is provided under a standard homeowners insurance policy to help reimburse the insured for living expenses in the event their home becomes uninhabitable due to a covered claim.
• Medical payments coverage
  Medical payments coverage is included in a standard home insurance policy to protect the insured in the event that a non-resident is injured on their property and does not want to file a lawsuit. Medical payments coverage helps provide payment for medical expenses.
• Other structures coverage
  Other structures coverage is part of a standard homeowners insurance policy that protects covered homeowners against financial loss in the event that a structure on their property, aside from their home, is damaged in a covered claim.
• Peril
  A peril is a risk or loss that an insurance policy covers. Some covered perils may include wind, hail, fire and theft.
• Replacement cost
  Replacement cost is the amount that it would cost to build a home back to its original condition in the event of a covered claim. Replacement cost is calculated by multiplying the square footage of the home by the building cost per square foot.