Additional Living Expenses: In a standard homeowners policy, Loss of Use (Coverage D) will reimburse you for any additional living expenses incurred by you in an attempt to maintain a normal standard of living if your home is made uninhabitable by a covered peril. See Loss of Use.
Bodily Injury (BI): An important type of liability coverage, BI will pay legal damages awarded for injury or death for which you are held legally responsible.
Dwelling: This is the part of your home insurance policy that covers the home itself-frame, flooring and fixed objects. The amount of Coverage A is the cost to replace the structure of your home in the event of total loss. Other coverage’s are usually based on a percentage of Coverage A.
Personal Liability: Covers you for your legal responsibility for injury caused to others whether on or away from your own property.
Medical Payments: Pays medical costs if someone is injured on your property. A homeowner policy automatically covers $1,000. You can increase this coverage in $1,000 increments, up to $5,000. In order to collect more than this, the injured party must file for compensation under Coverage E.
Debris Removal: While most property policies cover only direct damages caused by an insured peril, the “debris removal clause” covers the cost of removing debris produced by the peril’s occurrence. For example, a hurricane sweeps through the state, a fallen tree will be removed only if it lands on your house. Debris Removal reimburses you for the cost of cleaning all the broken limbs and rubble.
Guaranteed Replacement Cost: This coverage on homeowners insurance means that your home will be repaired to its value at the time of loss regardless of the amount of coverage carried. For example, you estimate your home to have a full replacement value of $162,000. On your homeowner’s policy, you carry $162,000 coverage for the structure. If you have guaranteed replacement cost endorsement on your policy and the home is lost in a fire and the house costs $168,000 to rebuild, the policy will pay $168,000.
Other Structures: Generally detached structures, such as a garage or tool shed, sharing property with the insured dwelling. Under a homeowner policy “other structures” are automatically covered for 10% of the limit chosen for Coverage A.
Personal Property: Any of your property, such as furniture, clothing and consumer electronics, other than real estate property. Your homeowner’s policy covers the personal property of you and your family members.
Replacement Cost: Coverage for the cost of replacing damaged property at the time of loss with that of similar kind and quality. If you carry replacement cost coverage and have a loss, the insurer pays for the cost of a new replacement, minus any policy deductible..