When you look forward to buy home insurance policy, you may have hard times in understanding the concepts and language of the company. Sometimes you wish to ask some questions from those executives to clarify your doubts but in vain. They talk in terms that are way beyond your understanding. So, here is a guide to understand some general terms of home insurance.
Personal Property: this means your belongings and will include everything from washing machine, TV, clothes and beds to couch and clothes. So, it will cover everything that belongs to you inside your home.
Other Structures: this may be any other type of construction in your owned property that is not connected otherwise. It can be shed, swimming pool, mailbox and greenhouse etc.
Liability: this means that amount that may arise when someone files a lawsuit on you concerning a living life. So, home insurance providers can protect you in such a case by covering portion of liability.
Loss of Use: if you have lost your home in some covered peril, then you may need a temporary place to live till your damaged house is rebuilt. Such expenses for temporary lodging, travel and food etc. are covered by loss of use coverage through home insurance.
Dwelling: it is the place where you live and is called your home in simple words.
Peril: it can be called as anything, which can potentially cause harm to your property or you. Lightening, wind, tornadoes and vehicles etc. are put in this term.
Claim: It is basically a request for covering the damages caused by a covered peril under your home insurance policy.
Premium: it is the overall cost that you will pay when buying home insurance policy.
Effective Date: it is the day when the home insurance policy you buy gets started.