A homeowner policy includes property and liability coverage designed to protect homeowners and/or renters from damage and theft to the dwelling as well as liability coverage should an accident to another person occur on the land.


Home Insurance Coverage Options & Terms


Coverage A: Dwelling covers the dwelling structure, including flooring, frame and fixed objects within the home. Coverage A replaces the structure in the event of a total loss due to a covered peril.

Coverage B: Other Structures covers detached structures such as tool sheds, storage sheds, garages, etc on the insured land. Typically Coverage B is covered at 10% of Coverage A.

Coverage C: covers personal property typically at 50-75% of Coverage A.


Coverage D: provides compensation if the property becomes uninhabitable due to a covered peril. Typically coverage is automatically included as 20% of Coverage A.

Actual Cash Value: is the cost, minus any depreciation, of a home or property to be replaced.


Deductible: is the amount of an insurance claim that the insured person agrees to pay and is deducted from the claim payout.


Endorsement: is a clause attached to the policy that revises or adds terms of the contract.


Flood Insurance: covers your possessions and property that are damaged by rising and flooding of bodies of water. Flood insurance is separate from home insurance.


Guaranteed Replacement Cost: is protection that ensures your property will be restored to its original value before the time of loss. This coverage states that if your house costs X dollars to rebuild, the policy will pay X dollars to restore it to its previous state.


Liability Insurance: covers the costs when you are legally responsible for an accident that causes damage to a person or property.


Medical Payments: pays medical expenses, regardless of the cause or fault, when an accident occurs on your property. Coverage does not pay for medical expenses for the policy holder or additional inhabitants that reside on insured property.


Mobile Home Policy: insures a permanently situated mobile home.


Mortgage Clause: is a clause that protects the lender/interests of the mortgagee by promising reimbursement after a loss and other rights to recovery.


Replacement Cost: is the cost needed to replace damaged property and items with items similar in nature and quality. The insurer pays for the cost of new replacement, less the deductible.


Umbrella Liability Insurance: is a type of insurance that covers the applicant in specific situations which are not included in standard liability coverage and protects against losses which exceed amounts covered in other liability policies.


Contact Mary Adelmann, Janice Winn or Ted Breckheimer for your home insurance needs.

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