Common Home Insurance Terms

We’ve had several blog posts on home insurance, and thought it was time to review the common terms we use when discussing home insurance.

Declarations Page: The part of the policy that identifies the named insured, address, policy period, insured location, policy limits and over key information. In other words, this is the page(s) that will list your coverages and their limits.

Residence Premises: The dwelling in which you reside and is listed on the declarations page

Named Insured: The person named on the declarations page and their resident spouse

Resident Relative: Those who reside on the premises and are related to the named insured by blood, marriage or adoption.

Occupied: Classification used when the dwelling is being lived in; can be a primary, secondary or seasonal dwelling

Unoccupied: The property still contains personal property that the residents may return to/plan on returning to but are not currently occupying. This can include vacation homes or secondary homes.

Vacant: There are no people living in the home, as well as no contents in the home. Carriers have different specifications for when a home is determined to become vacant, which can include how long a home can sit until it becomes vacant (usually 30-60 days). This can include a rental property that’s empty between tenants, or a home inherited after a parent dies.

Replacement Cost: Cost to replace damaged portion with like kind and quality at today’s value

Actual Cash Value (ACV): Replacement cost value minus depreciation (according to the age of the property or the reduction in value for normal wear and tear)

Deductible: The amount of money an insured is responsible for in the event of a loss before the insurance policy starts covering expenses

Bodily Injury: Damages done by you to another person in which you become legally obligated to pay for because of injury to another person, such as excess medical costs, pain & suffering, etc.

Personal Injury: Damages done by you to another person other than bodily injury or property damage. This definition can include false arrest or imprisonment, malicious prosecution, slander, libel, invasion of privacy or wrongful eviction.

Give us a call at 734-453-6000 to review your policy today!

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