What Does All This Stuff on My Home Insurance Policy Mean?

Shopping for home insurance can be a confusing ordeal. With all the different terms, it’s sometimes difficult to understand what exactly is covered. We want you to get the most from your homeowner’s policy. Use this list of common home insurance terms as you review your policy to better understand what you are getting out of it.

  • Endorsements: Endorsements are often referred to as “riders” and their purpose is to amend your insurance policy. An endorsement can add, remove or change your coverage, depending on what you specify. For example, if you want to insure a motorboat or small sailboat on your home insurance policy, you can ask your insurance agent to add a watercraft endorsement.
  • Real Property: Isn’t all property real? Not necessarily! In the insurance world, “real property” describes property that can’t be moved. This includes your home and the land it sits on, as well as any structures like a garage, workshop or barn.
  • Actual Cash Value: There are all sorts of “value” terms in the real estate and insurance industry – appraisal value, tax value, replacement value and more. Actual cash value is the total cost to replace your property minus depreciation. The age and condition of your property will determine how much your property has depreciated.
  • Dwelling: You might think that the word “dwelling” means your home—the house, the land it sits on and your detached two-car garage. However, when a home insurance policy provides coverage on a dwelling, it is actually talking about your house only, and anything that is physically attached to it. If you have a deck or garage that is attached to the home, then that is considered to be part of your dwelling.

If you find more terms you are unsure about on your home insurance policy, we will be happy to explain it to you. Take the time to understand your policy so you can get the right coverage without any surprises!

Get the coverage you need. Call Key City Insurance at (866) 466-2109 for more information on Salt Lake City home insurance.