Insurance glossary - Why Insurance Me

Glossary

Plain-language definitions of insurance terms.

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Depreciation: Depreciation is the decrease in an item’s value because of age, wear, or becoming outdated. Policies that pay actual cash value subtract depreciation from the c...
Dwelling Coverage: The part of a homeowners policy that pays to repair or rebuild the physical structure of your home from a covered loss.
Flood Insurance: Separate coverage for flood damage, which standard homeowners and renters policies exclude. It is available through the National Flood Insurance Program and som...
HO-3 Policy: The most common homeowners policy form. It covers the structure against most causes of loss except those specifically excluded, and personal property on a named...
HO-6 Policy: A homeowners policy form for condo owners, covering personal property, liability, and the interior portions of the unit that the condo association's master poli...
Landlord Insurance: Coverage for a property you rent out to others, typically including the dwelling, liability, and lost rental income. It does not cover a tenant's belongings.
Loss of Use Coverage: Homeowners or renters coverage that pays the extra cost of living elsewhere, such as hotel and meals, while your home is uninhabitable after a covered loss.
Ordinance or Law Coverage: Coverage that helps pay the added cost of rebuilding to current building codes after a covered loss, which a standard policy may not fully cover.
Personal Property Coverage: The part of a homeowners or renters policy that pays for damage to or theft of your belongings.
Scheduled Personal Property: An add-on that insures high-value items like jewelry, art, or instruments for more than the standard policy's per-item limits, often without a deductible.
Water Backup Coverage: An add-on that covers damage from water backing up through sewers or drains, or from a sump-pump failure, situations a standard policy usually excludes.