| Additional
Living Expense: |
In a standard homeowner 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 Loss of Use. |
| Bodily
Injury (BI:) |
An
important type of liability coverage, BI will pay legal damages
awarded for injury or death for which you are held legally responsible. |
| 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. |
| Personal
Liability: |
covers you for your legal responsibility for injury caused to
others whether on or away from your own property. |
| Medical
Payments: |
pays medical costs if someone is injured on your property. A homeowner
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. |
| Debris
Removal: |
While
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. |
| Guaranteed
Replacement Cost: |
Guaranteed
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 homeowner
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 $168,000. |
| Other
Structures: |
Generally
detached structures, such as a garage or tool shed, sharing property
with the insured dwelling. Under a homeowner policy, "other
structures" are automatically covered for 10% of the limit
chosen for Coverage A. |
| Personal
Property: |
Any
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 members. |
| Replacement
Cost: |
Coverage
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. |