To help you understand & navigate the complex insurance world, here are some basic insurance terms you should be familiar with. This brief guide is made available for informational purposes only and not meant as a legal document. Speak with an Avatar representative today who would be happy to explain coverage issues in greater detail and customize a quote for you.
Our Homeowner’s policy is designed to provide coverage in the event of a covered loss for the following:
- Your home
- Other structures on your property
- Your personal belongings
- Loss of use of your home
- Personal liability
- Medical payments to others
PROPERTY COVERAGE
Coverage A – Covers your dwelling. This also includes attached structures. It also covers materials and supplies located at the residence premises used to construct, alter or repair your dwelling. Coverage A applies to real property owned by you.
Coverage B – Covers private, non-business structures at your residence, detached from the dwelling. This includes structures such as garage, fence, swimming pool, or guest house. This coverage also applies to structures connected to your dwelling by only a fence, utility line, or similar connection. Coverage B is not applicable to Condominium or Renters policies.
Coverage C – Covers your personal property such as clothes and furniture for direct physical loss from the perils named in your policy. Some special limits are stated in the policy for loss or damage to certain types of property. (See your policy for a complete list of special limits).
LIABILITY COVERAGE
Coverage E - Covers you for the legal liability for bodily injury or property damage to others, arising out of your residence or the personal activities of you and your family members away from the residence.
Coverage Limits – Coverage A coverage for your home is determined using an estimator to determine what it would cost to rebuild in the event of a loss. The value is not determined by the mortgage amount or the property value as homes damaged in a loss are affected by many variables such as debris removal and current building codes.
Premium Credits– Credits that apply to your policy can include wind mitigation, monitored alarm and for policyholders age 55 and older.
Replacement Cost vs. Actual Cash Value – Covered losses paid as replacement cost are not reduced by depreciation while actual cash value coverage is reduced by depreciation and the actual value of the covered item at the time of loss.
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