We’ve talked before about general terms that are used throughout the insurance industry and about specific terms you might hear when looking for auto insurance.

So what about home insurance, aka homeowners insurance? No surprise that there are some terms that you’ll usually only head when talking about a house.

Inflation protection: Your car depreciates. Most of the stuff in your home is worth substantially less than what you paid for it. Your home is one of the few things that appreciates over the years, so inflation protection makes sure that your home is as protected now as it was when you started the policy

Liability coverage: While car insurance has liability insurance, it is in some ways the opposite when it comes to homeowners insurance. You need liability insurance for your car because of something you’ve done, but you liability insurance on your house because of something you didn’t do. Perhaps you didn’t fix the sidewalk and someone tripped and broke a wrist, or maybe your fence fell over and hurt someone’s dog. Liability can help keep you safe from unintentional negligence.

Replacement cost coverage: Replacement cost can apply to both the property and contents so that depreciation does not apply. For instance, if you have a 10-year old TV and the roof leaks on it, you’d normally get the cost of the TV factoring in depreciation. But with replacement cost you’ll get the cost of an equivalent new TV.

When you’re talking about getting homeowners insurance, learning just a few simple terms can make a conversation with an agent so much easier. Contact us for all of your home insurance needs!



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