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Homeowners Insurance Glossary

Illustration of a Homeowners Insurance Glossary

D

Dwelling Policy

An insurance policy that operates like a homeowners insurance policy to cover personal property and structural damage to a home, but does not provide liability coverage.

G

Group Policy

A homeowners insurance policy that is sold through a special group insurance trust or employment-based group wherein members are included in a master policy. The individuals involved receive certificates of coverage from the master group insurance plan.

H

Home Inventory

A record of personal possessions for homeowners insurance purposes to ensure that policyholders purchased enough coverage and to swiftly process claims. This can include receipts, photographs, or video recordings of the belongings.

Homeowners Insurance/Policy

A form of property insurance that protects an individual’s home from damages to a house itself or to possessions within the home.

I

Inflation Protection

A benefit that automatically adjusts your homeowners insurance limits to account for increases in costs to rebuild or repair a property.

M

Market Value

The current value of your home/property, including the price of your land.

O

Ordinance or Law Exclusion

Some homeowners insurance policies may exclude costs of repair or replacement of damaged property that requires upgraded materials according to current building codes. Standard homeowner policies might only cover the cost of repair/replacement according to the cost of the original grade materials, requiring the insured to pay the difference unless they have purchased additional coverage.

P

Package Policy

An insurance policy that contains multiple coverages that are available separately. Homeowners insurance is considered a package policy in most cases since standard plans include property, liability, and theft coverages.

R

Real Property

Land and the items attached to it such as buildings, gardens, and wild vegetation.

S

Scheduled Items

Valuables covered by a rider or additional purchased coverage on a standard homeowners insurance policy.

Sub-limit

A specified amount that is less than the maximum limits on a homeowners insurance policy that applies to certain types of property or coverages, usually named on your policy.