Terms to Know About Your Homeowners Insurance Policy

Actual Cash Value: Represents the current cash value of the real estate property covered by your homeowners insurance policy.

Casualty Insurance: Liability protection, or  coverage that protects you in case you cause damage to other people’s property, or cause injury to another person.

Coverage A: Covers your home as well as anything that is attached to it.

Coverage B: Covers anything on your property that is detached from your home such as a shed or garage.

Coverage C: Offers home insurance coverage anywhere in the world for your personal property.

Coverage D: Covers expenses that you may incur due to having to live elsewhere because of damage to your covered home.

Exclusions: What is not included, or protected, as part of your coverage in your policy

Liability Coverage: This part of your homeowners insurance policy covers property damage and bodily injury.

Limit of Liability: If a loss occurs, this is the maximum amount in your homeowners insurance policy that you will have to pay out of pocket.

Property Insurance: The part of your homeowners insurance policy that covers real or personal property.

Statutory Limits: The minimum amount of homeowners insurance coverage that is allowed by law.