If you’re shopping for homeowner’s insurance, you know that there are a multitude of terms to wade through – some familiar, and some not so familiar. Understanding the specific terminology can better help you decide what insurance policy works for you and your family.
An appraisal is performed by an authorized person to determine property value or damaged property value when there is a home insurance property claim.
Your deductible is the amount you would need to pay out of pocket for a covered claim before the insurance company becomes responsible for the payment. For example, if the total covered claim is for $1,500 and your deductible is $500, you would pay $500 out of pocket, and then the insurance company would pay $1,000.
When there is damage or a loss to your property, you (the policyholder) would make a request or claim for reimbursement from the insurance company under your home insurance policy.
When a specific property, person, or circumstance is not noted in a policy, it would be considered exclusion and not covered by your homeowner’s insurance.
A policy is a written contract for insurance between an insurance company and the policyholder.
A premium is the amount you are required to pay periodically to the insurer to receive coverage under the policy you’ve chosen for a defined period of time. This compensates the insurer for bearing the risk of a payout should you need coverage.
Once you understand the terminology, it’s time to do some research and receive quotes. Several insurance company websites provide free online quotes. Take your time and choose the policy that fits your needs the best!