Friday, April 29, 2016

20 Homeowners Insurance Terms To Know

Not understanding your homeowners insurance policy can result in inadequate coverage and serious financial consequences. For the average Joe, some of the terms used in the insurance industry can seem like a foreign language. While your Lake of the Ozarks insurance agent should be able to explain your policy to you, there are some terms that you might want to understand on your own. Let's take a look at some common homeowners insurance terms that you may come across:

1. Adjuster - An adjuster is someone who is trained to investigate losses and seeks to determine the extent of an insurer's liability for that loss when a homeowners insurance claim is filed. Adjusters can either represent specific insurance companies or can be a "public adjuster" hired by the claimant to work independently.

2. Appraisal - An appraisal is an evaluation of a home insurance property claim by an authorized person, usually an adjuster, to determine the property value or damaged property value. Many policies require an appraisal process to resolve claim disputes.

3. Cancellation - A cancellation is the termination of a homeowners policy before its agreed-upon expiration date, most often due to nonpayment of the premium.

4. Claim - A claim is a homeowner's request for reimbursement under the terms of the homeowners insurance policy.

5. Deductible - The deductible is the amount that a policyholder must pay out of their own pocket before the homeowners insurance coverage kicks in.

6. Depreciation - Depreciation is the estimated decrease in value of property over time due to wear, tear, aging and other factors.

7. Endorsement - An endorsement is a provision, document or clause added to a homeowners policy that modifies the original coverage offered by the policy.

8. Exclusive Agent - An exclusive agent is an insurance agent that only sells the products of one insurance company. 

9. Exclusion - Exclusions are items, conditions or circumstances that are specifically noted in a homeowners policy as not being covered.

10. Independent Agent - An independent agent is an insurance agent that represents more than one insurance company. For example, Insure the Lake has direct contracts with over 50 different insurance companies, allowing us to offer you the most comprehensive coverage at a competitive price!

11. Lapse - A lapse is an interruption in coverage caused by non-payment of the premium.

12. Liability Coverage - Liability coverage covers the losses for bodily injury or property damage to others that occur on the homeowner's property, as well as medical and legal expenses that may arise from lawsuits. Both losses are covered up to a specific dollar limit.

13. Market Value - Market value is the current worth of your home, including the land on which it is built.

14. Nonrenewal - When an insurance company declines to renew a policy at the end of its term, it's referred to as a nonrenewal.

15. Peril - A peril is a specific risk or reason for a loss.

16. Personal Property - Personal property refers to portable items, such as furniture, electronics and clothing, that are not permanently attached to the home.

17. Policy - A homeowners policy is a written contract between an insurer and the insuree specifying coverage for loss or damage to property.

18. Premium - A premium is the price charged by an insurance company that varies depending on the level of coverage purchased.

19. Property Coverage - Property coverage is protection for building or personal property against loss or damage.

20. Underwriting - Underwriting is the process that insurance companies use to determine the eligibility and premiums for coverage.

The most important thing to remember when it comes to understanding your Lake of the Ozarks homeowners insurance policy is that not all homeowners policies are the same. For further help understanding your policy, contact the best insurance agent at the Lake of the Ozarks. Insure the Lake is here to help with all your insurance needs from homeowners to business insurance.

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral