Home Insurance Daily Guide

With so many types of home insurance coverages being offered, another thing that adds to the confusion is the different terminologies that you see on your policy. We hope to demystify some of these words:
1.Additional Living Expense – this is the cost that you incur while your property is being repaired.
2.Arbitration Clause – if there is no settlement between you and the insurance company, an independent appraiser will be called in.
3.Binder – temporary contract that serves as proof of coverage until actual policy is finished.
4.Claim – the payment given by the insurance company to cover you losses.
5.Conditions – specifics on what are covered and what are not covered by your policy.
6.Depreciation – the amount of decrease in value of your property.
7.Exclusions – things that are not covered by the policy.
8.Hazard – increased risk for loss or additional extent of damage.
9.Inflation guard coverage – cost margin to pay for increased in material and labor when you undergo repair for your property.
10.Liability Insurance – coverage for the injury of persons or damage to another property.
11.Non-Renewal – policy that will not continue after the stated termination date.
12.Peril – this is the reason for the incurred damage to your property which may be classed separately by your coverage.
13.Premium – the regular amount you pay to the insurance provider.
14.Replacement Cost Coverage – the amount to replace a lost, damaged or stolen item or property with a comparable item.
15.Settlement – the agreed amount to be paid by the insurance provider.
16.Underwriting – determination how safe it is to insure your property.