Merastar Auto and Home Insurance

Home Insurance Terms and Definitions

The following information, although a reasonable description of the coverage provided, does not constitute part of the policy or binder of insurance and shall not be construed to replace any provision of the policy itself. In the event of any conflict between the policy and this information, the provisions of the policy shall prevail. It is therefore important that you read your policy carefully for complete details.

Home Insurance Terms

  Coverage A - Dwelling
  Coverage B - Other Structures
  Coverage C - Personal Property
  Coverage D - Loss of Use
  Coverage E - Personal Liability
  Coverage F - Medical Payments to Others
  Inflation Guard
  Replacement Cost

Home Insurance Definitions

  1.   Coverage A - Dwelling
Coverage A is the part of the policy that pays to repair or rebuild the home if the dwelling is damage or destroyed due to a covered loss. It will not pay for damage caused by a flood, earthquake, or routine wear and tear.
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  2.   Coverage B - Other Structures
Coverage B provides coverage for other structures on the insured premises, which are not attached to your home (i.e. barn, shed, garage, etc.). Coverage does not apply to the land.

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  3.   Coverage C - Personal Property
Coverage C provides coverage for your personal possessions in the event that they are damaged by a covered peril.
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  4.   Coverage D - Loss of use
Coverage D provides additional coverage (necessary to maintain your normal standard of living) when an insured's "residence" premises suffers a covered loss that makes the residence unfit to live in. This may include payments for the additional cost of a place to stay, food, and other increased living expenses.
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  5.   Coverage E - Personal Liability
Coverage E provides protection for accidental bodily injury or property damage to others for which you are legally liable. Examples of situations where this might apply would be your child throwing a ball and accidentally breaking a neighbor's window or a guest slipping and falling down your front steps.
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  6.   Coverage F - Medical payments to others
Coverage F provides coverage for medical expenses incurred by others injured while on your property or through your personal activities.
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  7.   Inflation Guard
Inflation guard is an endorsement added to your homeowner's policy. The amount of coverage on your home automatically increases to keep pace with rising building costs.
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  8.   Replacement cost
Under the replacement cost coverage, the policyholder is reimbursed an amount necessary to replace most articles with one of similar type and quality at current prices.
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  9.   Deductible
Deductible is the amount of the loss that the insured is responsible to pay out of their pocket for the loss. You may choose a higher deductible to lower your premium.
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  10.   Limits
Maximum amount a policy will pay either overall or under a particular coverage.
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  11.   Premiums
The amount of money an insurance company charges for insurance coverage.
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Helpful Information

Common Home Insurance Questions
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About Merastar's Auto Insurance
Common Auto Insurance Questions
Auto Insurance Terms and Definitions
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"No one can come close to Merastar on rates."
-Mark K., Merastar Auto & Homeowner policyholder