Home Insurance Glossary

Your home insurance policy- translated.

Like most homeowners, your home is your greatest asset. That's why having a strong understanding of your homeowners insurance policy is so important. However, since home insurance policies are written by home insurance companies- customers often have a difficult time translating their policy. Use our home insurance glossary to search out terms commonly found in homeowners insurance policies and get clear, concise definitions written in language you can understand!

Blanket Insurance Policy

A single policy that covers more than one person or piece of property.

Casualty Insurance

the type of insurance covering the legal liability for losses caused by injuries to others or property damage caused by you or other residents of your home.

Coinsurance

The sharing of risk between the insurer and the insured.

Coinsurance Clause

A provision in a hazard insurance policy that states the amount of coverage that must be maintained -- as a percentage of the total value of the property -- for the insured to collect the full amount of a loss.

Flood Insurance

Insurance that compensates for physical property damage resulting from flooding. It is required by lenders for properties located in federally designated flood areas.

Hazard Insurance

Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards.

Homeowners insurance

An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

Insurance

A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.

Insurance Binder

Written evidence that insurance is temporarily in effect until the specified expiration date. At that time a permanent policy must be obtained.

Liability Insurance

A policy that protects owners against claims of negligence, personal injury or propert damage.

Property Insurance

Home Insurance coverage for your personal or real property.

Condo Insurance

Condo Insurance is a home insurance policy designed around the specific needs of condo owners. It provides coverage for contents, liability, MedPay, living expenses, and limited structural coverage. Condo owners will typically also need to purchase a Master Policy from their homeowners association. Read more about master policies and condo insurance.

DISCLAIMER: The information provided above is intended to be a guide to understanding common homeowners insurance terms. HomeInsurance.com does not intend this information to be official or legally binding. HomeInsurance.com uses this list as a basic guide to understanding these terms and should not be considered complete or definitive.