Understanding 5 Terms Commonly Used in Home Insurance

Home insurance is something everyone must invest in because it will protect your assets from unfavorable circumstances. However, browsing through different home insurance plans can be extremely challenging especially for those who are obtaining any kind of insurance program for the first time.
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To avoid confusion and help you understand what you are trying to get, here are some of the most commonly used terms in home insurance program:

Accidental Damage
This term refers to damages that are caused by sudden and unexpected forces. It may occur on a building or its content. Some of the examples of accidental damage are basketballs breaking the windows and coffee spilling on the carpeted floor. Some companies offer coverage on accidental damage in their insurance policy. If that is not the case with your current insurance plan, you can always consult an agent as to how you can get it as an “add-on.”

Claim
During an instance in which your home was damaged by something that is covered in terms of your insurance, you can ask for a claim. This may come in many forms such as replacement, reimbursement, or repair, depending on what is stated in your policy. If you file for a claim, there might be a need for you to pay for the excess.

Premium
This is the price you pay an insurance provider so that they may give you cover. Since most insurance are bought annually, you can also pay for your premium yearly or in installments, depending on the agreed upon terms.

Rebuild Cost
Sometimes, upon applying for home insurance, you will be required to provide a rebuild cost. Rather than being the market value of your house, it is the total cost that will take for it to be built from scratch, was it to be destroyed.

Sum insured
This refers to the maximum value that the insurer will pay for a claim from any one incident in the agreement. This should be visited regularly so that you will be sure that it meets your possible needs.

Since obtaining home insurance will help you prepare for the future, you can always ask for help in words that you have a hard time understanding. Do not let the fear of unknown words get in the way of getting the home insurance that you need.

At Keith Sanders Insurance Group, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (254) 235-8185. Get your free quote today by CLICKING HERE.