Home Insurance Glossary

The cost to replace damaged, destroyed, or stolen personal property, minus depreciation (the wear and tear of the item since you bought it).

Hazardous circumstances on a property that could attract and injure children, which the owner of the property could be held liable for.

An agreement that provides the benefits of your claims to another person.

A professional assessment of the value of property, including a home, personal property, and property losses.

A form the insurance buyer fills out to provide necessary information to the insurer to create a policy.

Additional coverage for any damage or injury your pets may cause to property.

A state-licensed representative from an insurance company who acts as an intermediary between insurance buyers and the insurance provider.

An insurance provider that has a license from the state to write and sell insurance policies.

An insurance agent who evaluates claims to determine how much the insurance provider has to provide.

Extra coverage for items of particularly high value that you can include in addition to your contents or personal property coverage; includes jewelry, art instruments, antiques, expensive collections, and other extra valuable items. See Contents.

See Temporary Living Expenses.

Optional insurance coverage for other property that you can add to your policy.

Any person or company with a stake in whether your home is insured, like your mortgage lender. They aren’t covered by your policy but are alerted that you have insurance.

Someone who has a financial interest in your home that should also be covered by your policy but either doesn’t live with you or does but isn’t a family member or spouse.

One of the three plans you may choose from when building an OpenHouse Home Insurance Policy. After picking a plan, you can customize your coverages to your needs. The Basic Plan provides coverage for taking care of just the essentials.

Coverage for stolen or destroyed property in the event of another person breaking and entering the insured person’s property.

A temporary insurance policy that the insurer provides before issuing the actual agreed-on policy.

Permanent additions or changes to the property that increase the property’s value.

The protection and benefits you receive in your insurance policy agreement.

The cost to completely rebuild your house, based on factors like materials, style, and age. It’s not the same as the market value or the amount you paid for it.

Coverage that helps pay to replace personal belongings, like furniture, clothes and electronic devices, lost in a peril.

A section of your insurance policy requiring you to have coverage equal to 80% of your home’s replacement value.

A co-applicant is a spouse or family member who lives with you that should also be a Named Insured and covered by your home insurance policy.

Discounts to your premium from the insurance provider for certain home features, like having hurricane shutters or a monitored fire alarm.

Your payment request to your insurance provider for any losses covered under the policy agreement.

A document from the insurance provider proving that you have business insurance.

Policies by insurance companies to handle and mitigate the effects of catastrophic events and ensure timely support.

An event in which a home becomes unlivable due to the abrupt collapse of the ground beneath the property.

Coverage for low-probability, expensive and disastrous events like earthquakes, floods, hurricanes, and terrorist attacks. These are often excluded from standard home insurance.

An unpredictable, high-magnitude loss.

Termination of an insurance contract prior to the specified end-date in the policy.

Coverage for physical damage to the structure of your home.

The main structure on your property, usually listed on your homeowners insurance by its address, and any attached structures.

The decrease in value of property as it ages or experiences typical wear and tear.

The limited amount you’re responsible to pay during certain insurance claims before the insurance provider pays the rest.

A section of your insurance policy that outlines key information about your coverage.

The calendar date that an insurance provider creates a given policy.

Harm inflicted on a person or property that could be grounds for an insurance claim.

The calendar date that tells you when your policy coverage ends and when your renewal policy will begin.

Whatever isn’t covered in an insurance policy, including certain perils, situations, hazards, or properties.

A specialty insurance market that offers policies to people who have been denied coverage.

A bank account that guarantees funds are available to pay costs like homeowners insurance premiums, property taxes, and mortgage payments.

A policy amendment that adds, changes, or removes coverage for specific property and takes precedence over the insurance contract’s limits.

The necessary actions taken by homeowners to resolve sudden circumstances that are serious and urgent. This includes protecting their property before a storm or taking actions after an incident to prevent additional harm.

The calendar date on which the insurance coverage starts.

Coverage that helps pay for property damage due to fungi, mold, and bacteria.

A building’s exterior walls, floors, and roofs that are made of flammable material, namely wood.

A homeowners insurance policy your mortgage lender buys when you do not pay your premiums or cancel the policy.

Areas designated by their likelihood of flooding as determined by the Federal Emergency Management Agency (FEMA).

An area with low-to-moderate flood risk.

A coastal area with a higher chance of flooding from storm waves and tidal surges.

A coastal area with a higher chance of flooding, especially from wind-driven waves.

An area with less than a .2% likelihood of flooding annually.

A moderate-risk flood zone with a .2% likelihood of flooding annually.

A high-risk flood zone near rivers and streams that can see one- to three-foot-deep floods in the form of sheet flow.

An area near a water hazard that has a one percent likelihood of shallow flooding between one and three feet annually.

An area considered to be a high-risk flood zone due to its proximity to floodplains, rivers, lakes, and other bodies of water.

A low-lying area near a large body of water that has a 26% likelihood of flooding during a 30-year mortgage.

Coverage for flood damage in the home, which is typically not included in homeowners insurance and instead is provided by the National Flood Insurance Program (NFIP) or private flood insurers.

The first step in the insurance claims process in which a policyholder alerts the insurance provider about a covered loss or injury.

A physical, fire-resistant wall on a property that maintains structural stability and controls the spread of a fire.

Describes structural materials that can withstand high temperatures for long periods without collapsing.

Coverage that is usually included in homeowners insurance policies for property damage due to accidental fire.

Areas in California whose physical conditions create moderate, high, and very high levels of wildfire risk.

A state-run program that ensures every homeowner gets coverage even if they cannot get it in the regular market.

The period after a missed premium payment’s due date when your insurance provider cancels your policy.

Additional coverage to your policy that protects your golf cart and other property in the event you cause or experience damage.

The place where you park your vehicle, which may or may not be a different address from your primary residence.

Coverage that helps pay to repair or replace your screened enclosure if it’s damaged during a hurricane (after you pay the hurricane deductible). Screened enclosures are not included in hurricane coverage unless you include this coverage.

A separate deductible that applies only to damage caused by hurricanes, often based on a percentage of your home’s value.

The maintenance and upkeep of a property, including the actions taken to ensure the safety, security, and condition of your home.

A separate contract from your homeowners insurance policy that protects your home’s appliances and other systems if they malfunction.

See Cost to Rebuild Home.

Coverage that includes your dwelling, other structures, additional living expenses, personal liability, and personal property.

A complete list of personal household belongings to be used in the event of an insurance claim regarding your contents.

A visual examination of your house’s interior and exterior and all other major elements to ensure functionality and report any necessary repairs.

An objective assessment of your property’s value based on similar nearby properties.

The insurance policy that your homeowners association uses to cover property damage and liability for common areas, including any damage you may cause.

A payment you owe your homeowners association to maintain common areas and amenities based on the group’s evaluation of the costs.

Coverage that protects a homeowner from property damage due to fires, storms, hail, or other natural events.

Any harm to your property caused by hail, or frozen rain, including cracked glass and interior water damage.

See Home Inventory.

An insurance provider.

The person who is protected by the coverage in an insurance policy.

Falsifying or exaggerating the facts of an accident to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

A binding agreement in which the insurance provider is legally required to pay benefits to the policyholder if certain predefined damages or losses occur.

The financial stake in an insured property that gives a person grounds to file a claim. See Additional Insured.

An upward adjustment of ongoing or future insurance policy benefits in line with inflation.

See Betterments.

Coverage, often additional, for expenses related to identity theft, including attorney and tax advisor fees, credit report fees, and loss of income.

An official and objective assessment of a particular piece of jewelry’s value.

A person or other entity included on an insurance policy’s declarations page that receives claim payments before the policyholder because of their financial stake in the insured property.

See Temporary Living Expenses.

A record of a policyholder’s property losses.

Any damage to property covered by your insurance policy, which is grounds for filing a claim.

The predetermined maximum amount your insurance provider will protect you.

The maximum amount of property coverage you bought as a policyholder.

Describes an insurance agent or provider’s certification to operate by a regulatory body.

Coverage that protects you from injury or damage you caused to other people or their property.

See Theft.

The time that passes between the cancellation, nonrenewal, or expiration of an insurance policy and the start of new coverage.

A temporary hold on issuing or updating insurance policies due to the high likelihood of upcoming property damage, such as an approaching storm, ongoing wildfires, or civil unrest.

A scenario that occurs when one party has entered the insurance contract with incentive to take unusual risks.

See Medical Expense Coverage.

Coverage that may help you pay for medical expenses that arise from an accident on your property, regardless of fault.

The price a home would be sold for on the open market, usually confirmed by an appraisal when there is a prospective buyer.

The decision to discontinue your policy after the current term expires.

In any claim not related to a hurricane, this is the amount you pay before the insurance provider pays. See Deductible.

A notarized letter that indicates you haven’t experienced any losses as the policyholder that you can file a claim for.

Behavior that disregards safety and responsibility, potentially leading to property damage.

A federally run flood insurance provider overseen by the Federal Emergency Management Agency (FEMA).

A policy that offers coverage only for specifically called-out events that cause loss or damage.

The owner of the insurance whose name appears on the policy.

A scenario in which your coverage highly exceeds the value of the insured property.

Structures not directly connected to the dwelling that are present on your primary residence and may be insured under a homeowners insurance policy.

A type of coverage that protects against a range of events that can cause loss except for those specifically excluded in the insurance policy.

Coverage that helps cover the additional cost to meet newer building codes required by law when rebuilding your home after a covered loss.

In addition to classic savings, OpenHouse offers over 25 unique savings to reward your life choices, such as being an organ donor, owning a pet, or having life insurance.

Any event causing damage or physical injury to a third party and resulting in a claim on an insurance policy.

A ranking given to a home based on its community’s fire-fighting capabilities as a way to determine the premium.

Injury to real or personal property. See Damage/Damages.

See Property and Casualty Insurance.

A category of insurance coverage that protects your possessions or the injuries and damage you cause to other people and their possessions.

Documentation from an insurance provider or agent that proves you have homeowners insurance to third parties, such as a mortgage lender.

The home you own and live in.

The main owner of a primary residence.

The amount you pay for insurance coverage, often monthly, as a policyholder.

An individual who purchases insurance coverage, receives the policy’s benefits, and has the right to change, cancel, or continue coverage.

The contract you have with your insurance company that explains what’s covered and when. See Insurance Contract.

One of the three plans you may choose from when building an OpenHouse Home Insurance Policy. After picking a plan, you can customize your coverages to your needs. The Plus Plan provides coverage for people who want to maximize their protection.

Behaviors or conditions that lead to or contribute to a peril.

A document of your loss history over the last seven years to give insurance providers insight into the risk they take on by insuring your home.

See Contents.

An additional layer of protection for your assets if a severe accident occurs that exceeds the liability limits of your coverage.

Coverage that helps pay the cost of injury or damage you caused to another person or their property if you as the insured are legally responsible.

Damage inflicted on a person’s body, mind, or reputation as opposed to property damage.

An event that causes damage to property.

An estimate of the cost of your insurance policy.

Your level of exposure to property loss or damage, including possible legal responsibility.

The cost it would take to replace or rebuild an item without factoring in depreciation.

The opportunity to continue your insurance policy for another term.

A situation in which insurance providers transfer to another insurance provider some of the risk they take on when selling a policy, usually in areas with frequent catastrophes.

The insurance provider’s decision to allow a previously canceled policy to restart coverage.

An area of land and any structures permanently attached to the land, including buildings.

See Premium.

A situation in which property is damaged unexpectedly due to water leakage from a plumbing or appliance malfunction.

A situation in which an insurance provider legally brings about a liability suit, on behalf of the insured, against a third party who caused damages to the insured.

An additional, lower coverage restriction on valuable items within your coverage limits.

One of the three plans you may choose from when building an OpenHouse Home Insurance Policy. After picking a plan, you can customize your coverages to your needs. The Standard Plan provides coverage for a comfortable amount of security.

The OpenHouse Smart Deductible allows homeowners to earn a growing amount of cash back on their hurricane deductible. If you have a hurricane claim in your first year of having OpenHouse home insurance that meets or exceeds your hurricane deductible, we give you up to 5% cash back. Your savings grow each year that passes without a claim on your policy. After 5 claim-free years, your OpenHouse Smart Deductible gives you up to 100% cash back on your hurricane deductible on a covered hurricane claim (as subject to the Terms and Conditions of the Smart Deductible policy).

Coverage that helps pay for damage caused by a sinkhole to your dwelling, other structures, or personal property.

A home that has its own utilities and HVAC system and whose owner owns the dwelling and the land it’s on.

A unique way that OpenHouse verifies the condition of a property to make inspections easier on homeowners. Self-inspections involve uploading photos online to check the condition of your roof, fire alarm, fire extinguishers, anti-theft devices, surrounding grounds, plumbing systems, and water heater.

A room entirely enclosed by screens for the walls and roof.

Added coverage to your insurance policy for particularly valuable items that would otherwise have coverage sub-limits.

A state of property that is so severely damaged that the cost to repair or replace it is more than the value of its coverage.

See Additional Interests.

Taking someone’s personal property.

A limited period for coverage.

If your home is unlivable after a covered loss, this coverage helps take care of your increased living expenses. Think about finding a place to stay, dining out if you don’t have a kitchen, and even boarding your beloved pet while your home is rebuilt. Consider your standard of living and how long it could take to rebuild your home.

The process an insurance provider uses to assess your risk and their offer to cover your property under an insurance policy.

Coverage that is insufficient for the value of your property.

Extra insurance that protects your liability exposures beyond the limits of other insurance policies.

The intentional alteration, defacement, or destruction of someone else’s property.

Coverage that an organization or person uses to protect their important documents and records in the event of a loss due to a covered peril, such as theft or fire.

A standalone policy or endorsement that covers homes that are vacant for an extended period of time.

The process of reinforcing your home with wind-resistant features to protect against wind damage and gain discounts on your home insurance.

The amount you are responsible for paying as the policyholder in the event your home is damaged by wind, hail, wind-driven rain, or similar events. See Deductible.

Coverage that you can add as an endorsement to your home insurance policy to pay for damage caused by backed-up sewers, drains, and sump pumps.