Home insurance, in many ways, is pretty straightforward. It offers protection against a variety of perils that can endanger your home. If you are new to home insurance or have decided to read your policy, you may have discovered some terms you are not familiar with or need to have defined as they refer to home insurance. At Vance Insurance Group LLC in Oklahoma City, OK, we believe in providing our customers with a personalized insurance assessment. We aim to find the perfect policy to meet your needs.
In home insurance terms, personal property is all the things you own that are not part of your home’s physical building. It includes your clothing, electronics, and furniture. There are two terms you need to understand when it comes to replacing them: actual cash value and replacement cost.
- Actual cash value-with this type of coverage, the item to be replaced is replaced at its current value, taking age and depreciation into account when determining the value.
- Replacement cost-with this type of coverage, the amount it would take to replace an item at current costs is how the value is determined.
The deductible is the amount you are required to pay out of pocket before your home insurance begins to pay. The amount is not per year. It is per claim. If you have more than one claim in a year, you will pay the deductible more than once.
An endorsement and a rider are the same things. They are additional add-ons to your home policy that provide additional coverage. It may be an increase in the amount of coverage or for an item that would otherwise be an exclusion.
Contact Vance Insurance Group LLC in Oklahoma City, OK for all your home insurance needs.