Homeowners Insurance Terms You Should Know - Darryl Davis
  • Darryl Davis Public Adjuster
  • Talk To Expert : (954) 709-3982

Homeowners Insurance Terms You Should Know

Insurance Terms on Your Homeowners Policy

Your homeowners insurance policy may not be the most exciting read, but nonetheless you should be familiar with your coverage. If you need to file a claim, it helps to be knowledgeable about some homeowners insurance terms that are commonly used. Here are the ABCs of insurance terms you’re likely to find in your policy!


This is the representative from your insurance company who will work with you in the event you file an insurance claim. 


This is a temporary policy in place that provides proof to your lender that you have insurance until a formal policy goes into effect. 


Indicates disasters affecting a geographic location such as hurricanes, floods, tornadoes, and hailstorms that can result in extensive property damage.


Your deductible is the dollar amount you have to pay toward a claim before your insurance pays. 


These properties or events are not covered by your insurance. 

Flood Insurance

Protection against damage done by overflowing bodies of water. Your homeowner’s insurance may not cover flood damage, so it might be necessary for you to purchase a separate flood insurance policy. 


There are some circumstances that can make the occurrence of loss or damage to your home more likely. Check with your provider about hazard coverage in your policy. 

Inflation Protection

Inflation does factor into your policy, and adjustments are made to count for an increase in repair costs or to replace your property. 

Limit of Liability

This is the cap-off amount your insurance company must pay for a claim. Once the limit of liability is reached, they will not pay anymore money.

Named Peril-Policy

A policy in which only specific hazards are covered. 

Open Peril

A policy that covers all losses and damages except for what’s mentioned in exclusions.

Personal Liability Umbrella Policy

When your primary liability coverage has been exhausted, having a personal umbrella policy can cover excess damages.

Replacement Cost Value Insurance (RCV)

Coverage that will pay to have damaged or destroyed property restored to its original condition or replaced without taking depreciation into account. 

Sump Pump Overflow Coverage

Insurance protection in the event your sump pump fails and damage occurs due to water overflow. 


The length of time a policy is in effect. Most homeowner insurance policies have a 12-month term.

Need More Information Regarding Homeowner Insurance Terms? Darryl Davis & Associates Will Help!

We understand how difficult it can be to navigate a homeowners insurance policy, and we’re happy to help! Contact us at 954-709-3982 if you have questions about homeowners insurance terms or if you need to file a claim. Let us do the hard work for you!