Policy Lexicon • 17 Terms
Home Insurance Glossary
Use these definitions while reading a quote or declarations page. A plain-language definition does not replace the wording in your policy; forms and state rules differ.
Actual Cash Value (ACV)
A loss-settlement basis described as replacement cost minus depreciation, with the policy controlling the calculation.
Declarations Page
The policy summary showing insured details, dates, limits and deductibles, read together with forms and endorsements.
Dwelling Coverage
The policy section for the insured home structure, with a stated limit, covered-loss terms and settlement conditions.
Hazard Insurance
A term to clarify with a lender and insurer instead of assuming a separate policy type or automatic protection from every hazard.
HO-3 Policy
A homeowners form label that should be checked against the actual edition, covered perils and endorsements.
Home Insurance Deductible
The portion of a covered loss assigned to the policyholder, including separate dollar or percentage deductible terms.
Insurance Endorsement
A policy amendment that can add, restrict or otherwise change coverage and must be read with the base form.
Insurance Premium
The amount charged for insurance for a policy term, distinct from a deductible or monthly billing arrangement.
Loss Assessment Coverage
A condo-policy coverage topic for qualifying association assessments, with triggers, exclusions and limits to verify.
Loss of Use / Additional Living Expenses
Coverage wording for qualifying expenses or losses when a home cannot be used under specified policy conditions.
Ordinance or Law Coverage
A coverage topic for additional repair or rebuilding costs associated with applicable building-code requirements.
Other Structures Coverage
The policy section to review for detached garages, sheds, fences and similar property apart from the main home.
Peril
A cause of loss, such as fire or theft, evaluated through the policy's named-peril or open-peril wording and exclusions.
Personal Liability Coverage
Policy protection for specified legal responsibility for injury or property damage, with exclusions and limits.
Personal Property Coverage
Coverage for insured belongings, subject to causes of loss, limits, special categories and settlement terms.
Replacement Cost
A repair or replacement valuation basis that still depends on policy limits, deductibles and conditions.
Water Backup Coverage
Terms to examine for sewer, drain or sump-related events, distinct from flood and plumbing-leak coverage.