Home Insurance glossary
Plain-language definitions of common home insurance terms.
- Actual cash value
- What your damaged property was worth at the time of the loss — the replacement cost minus depreciation for age and wear.
- Full definition of Actual cash value
- Dwelling coverage
- The part of a homeowners policy that pays to repair or rebuild the physical structure of your home from a covered loss.
- Full definition of Dwelling coverage
- Endorsement
- A written change to an insurance policy — adding, removing, or modifying coverage. Sometimes called a "rider".
- Full definition of Endorsement
- Flood insurance
- Separate coverage for flood damage, which standard homeowners and renters policies exclude. It is available through the National Flood Insurance Program and some private insurers.
- Full definition of Flood insurance
- Loss of use
- 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.
- Full definition of Loss of use
- Peril
- A specific cause of loss listed in a policy — fire, theft, hail, vandalism, etc. Some policies cover only "named perils"; others cover all perils except those excluded ("open perils").
- Full definition of Peril
- Personal property
- The part of a homeowners or renters policy that pays for damage to or theft of your belongings.
- Full definition of Personal property
- Replacement cost
- What it would cost today to replace your damaged property with a comparable new item — without subtracting for depreciation.
- Full definition of Replacement cost