If you are thinking about taking out an insurance plan for your home, you should first do a little research and try to learn their language. Here are ten of the most common terms that home insurance companies frequently use, explained in very simple words.
1. Accidental damage - a kind of damage on any part of the house that the home insurance companies believe were not done on purpose. This does not include stains, scratches or any other destruction that were caused by pets.
2. Claim - something you make in case of a fire or a burglary and certain things in your home were lost or destroyed. This usually means that you will get a comparable amount in cash.
3. Conditions - all the things you need to follow in order to make good on your insurance plan. Failure to comply with these conditions may result in the forfeiture of certain benefits. Conditions vary a lot depending on the discretion of the home insurance companies so you should be very clear about these matters.
4. Contents Insurance - a plan that will take care of your possessions and home furnishings in case of a burglary, fire or other natural disaster. Taking out this plan is advisable if you store a lot of expensive things in the house. Note that many home insurance companies don't include jewelry even in a contents insurance policy.
5. Excess - how much cash you have to recompense so that the home insurance companies can approve your claims.
6. Exclusion - all the events and items that you cannot file a claim for. Again, this varies among different home insurance companies and you have to read this list very thoroughly.
7. Liability - the legal responsibility for losses or damages done to any property. If you have liability, you will not be able to file for a claim.
8. Loss Adjuster - someone hired by the home insurance companies who evaluates the validity of claims made by the homeowner.
9. Sum Insured - the amount of money that the home is insured for, or the maximum allowable amount to be paid to the homeowner, whichever is lower.
10. Unoccupied - the status of your home is left without any person for more than thirty, sixty or ninety days at a time, during which home insurance companies may reject claims for losses and damages.
These are still just a few of the common terms you might encounter as you deal with
