Homeowners Insurance Definitions

Following are short definitions of homeowners coverage (see policy contract for detailed information):

Dwelling Coverage
The limit of coverage on your dwelling on your residence premises

Other Structures Coverage
Covers structures on your residence premises, such as a detached garage or storage shed, which are separated from the dwelling by a clear space, or is connected only by a fence or utility line.

Personal Property Coverage
Any personal property of an insured other than real property.

Loss of Use Coverage
Coverage that reimburses the insured for increased living costs when loss of his property forces him to maintain temporary residence elsewhere. Examples of these types of expenses are the cost for a hotel or motel, the extra cost for restaurant meals, and the cost of using a laundromat.

Personal Liability Coverage
Covers you and your family household member’s legal liability that may arise as a result of the injury or death of another person, or damage to the property of others.

Medical Payments Coverage
Coverage that will cover medical expenses of others who have sustained injury caused by you or a family member of your household.

Deductible
The amount the insured must pay before the insurance company pays the remainder of each covered loss, up to the policy limits.

Earthquake Coverage
Optional coverage that can be purchased that can be endorsed on to a homeowner’s policy covering damage caused by an earthquake.

Water Backup of Sewer and Drains
Optional coverage that can be purchased that can be endorsed on to a homeowner’s policy covering damage from water that backs up through sewer or drains, or overflows or discharged from a sump pump hole.

Flood
Not covered on a homeowner’s policy. A “separate” policy for flood must be purchased if this coverage is desired.