As they say, your home is your castle and your keep – the most valuable thing in your name. Homeownerâ€™s insurance is a prudent investment that can protect the value of your home. When shopping for policies, itâ€™s important to understand what youâ€™re buying. Here are the definitions of some important terms you may find on your homeownerâ€™s insurance policy.Â Â Â
Personal Property â€“ refers to property you own, excluding your actual home. Items such as furniture, tools, jewelry, etc. all count as personal property.
Peril or Cause of Loss â€“ refers to acts that you insure against. Things like fire, theft, and natural disaster count as perils or causes of loss. Perils that are included or excluded from coverage vary from policy to policy, so pay special attention to the perils that are listed on a policy that you are interested in.
Â Insured Premises â€“ refers to the total property you are insuring. It includes your dwelling as well as nearby structures or land that is under your control.
Â Other Structures â€“ refers to structures on the insured property that are clearly separated from the dwelling, such as garages or sheds. Fixtures such as fences and patios also count as other structures.Â
Â Temporary Living Expenses â€“ refers to a type of compensation offered by homeownerâ€™s insurance. If your home becomes uninhabitable for a covered reason, homeownerâ€™s insurance can pay for additional expenses incurred while living elsewhere, such motel fees, laundry bills, meals, etc.
Â This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.