Insurance Dictionary → Home, Renters, Condo & Property

Insurance Dictionary

Home, Renters, Condo & Property Insurance Dictionary

51 plain-English terms covering property protection, valuation, losses and common home, renters and condo concepts.

51 termsSimple meaning firstU.S. insurance reference

Home, Renters, Condo And Property Insurance

Plain-English definitions for this part of insurance. Read the simple meaning first, then the exact insurance meaning.

Renters insurance

Simple meaning: Insurance for people who rent a home or apartment. It can help protect personal belongings, provide liability coverage, and help with certain extra living costs after a covered loss.

Insurance meaning: A tenant-focused property and liability policy, commonly written on an HO-4 form, that generally covers personal property, loss of use, personal liability, and medical payments to others, subject to the policy’s terms, limits, deductibles, and exclusions.

Additional living expense (ALE)

Simple meaning: Extra necessary living costs caused by a covered loss, like some hotel or meal expenses.

Insurance meaning: Loss-of-use coverage for the reasonable increase in normal living expenses needed to maintain the household's usual standard of living after a covered loss, subject to policy terms.

Also called: ALE

All-in condo coverage

Simple meaning: A condo master-policy approach that may cover more of the original fixtures and building items inside units.

Insurance meaning: An informal term for a master policy covering broader portions of unit interiors. Exact responsibility still depends on governing documents and policy wording.

Attractive nuisance

Simple meaning: Something on property that may attract children and create danger, like a pool or trampoline.

Insurance meaning: A liability concept involving hazardous property conditions that may attract children. Legal standards vary by state and facts.

Bare walls coverage

Simple meaning: A condo master-policy approach that mainly covers common areas and basic building structure, not all improvements inside units.

Insurance meaning: An informal description of association insurance that stops at specified structural boundaries. Governing documents and policy language determine responsibility.

Also called: Walls-out coverage

Blanket property coverage

Simple meaning: One limit shared across more than one item, building, or location.

Insurance meaning: Property coverage using a combined limit across specified property, categories, or locations instead of separate limits for each.

Building code upgrade

Simple meaning: Work needed to bring damaged property up to current building rules.

Insurance meaning: A repair or rebuilding cost associated with compliance with current building codes. Coverage often depends on ordinance-or-law provisions.

Condo insurance

Simple meaning: Insurance for a condo owner’s unit, belongings, and liability where the condo association’s policy may not cover everything.

Insurance meaning: A unit-owner policy designed to coordinate with a condominium association’s master policy and cover specified building items, personal property, loss of use, liability, and other exposures.

Also called: HO-6 insurance

Cosmetic damage exclusion

Simple meaning: A rule saying the policy may not pay for damage that changes appearance but not function.

Insurance meaning: An exclusion or limitation for damage that affects appearance but not the ability of property, often roofing or siding, to perform its intended function.

DP policy

Simple meaning: A dwelling policy often used for homes that do not fit a standard homeowners form, such as some rental properties.

Insurance meaning: A dwelling property form providing specified property coverages and, depending on form and endorsements, optional liability or other protection. Coverage varies by DP form.

Also called: Dwelling fire policy

Dwelling coverage

Simple meaning: Coverage for the house or the part of the building the policy says is yours to insure.

Insurance meaning: Property coverage for the residence structure and attached structures, subject to the form, limits, valuation method, and exclusions.

Also called: Coverage A in many homeowners forms

Earthquake insurance

Simple meaning: Coverage for certain earthquake damage, usually bought separately or added by endorsement.

Insurance meaning: Property coverage for earthquake or earth-movement losses that are commonly excluded under standard homeowners policies, subject to special deductibles and terms.

Equipment breakdown coverage

Simple meaning: Coverage for certain sudden mechanical or electrical breakdowns of covered home equipment.

Insurance meaning: An endorsement covering specified mechanical, electrical, or pressure-system breakdown losses that ordinary property coverage may not insure, subject to exclusions and limits.

Extended replacement cost

Simple meaning: Extra dwelling coverage above the stated limit, up to a policy-set amount, when rebuilding costs are higher than expected.

Insurance meaning: An endorsement that can increase the available dwelling limit by a specified percentage or amount when covered rebuilding costs exceed the base limit, subject to conditions.

Flood insurance

Simple meaning: Separate insurance for certain damage caused by flooding.

Insurance meaning: Insurance covering direct physical loss caused by flood as defined by the applicable flood policy. Standard homeowners and renters policies generally do not cover flood as defined by those policies.

Important: Flood definitions, waiting periods, limits, and program rules depend on the policy and program.

Functional replacement cost

Simple meaning: Replacing damaged property with something that works the same way, even if it is not identical.

Insurance meaning: A valuation method that may use modern materials or construction methods that perform the same function as older or obsolete property, subject to endorsement terms.

Guaranteed replacement cost

Simple meaning: A form of dwelling protection that may pay qualifying rebuilding costs above the stated dwelling limit, subject to strict policy rules.

Insurance meaning: A policy feature that may cover the cost to rebuild a covered dwelling even when it exceeds the listed dwelling limit, subject to eligibility, policy conditions, exclusions, and insurer-specific wording.

Important: It is not available everywhere and should never be assumed from the phrase replacement cost.

HO-3 policy

Simple meaning: A common homeowners policy form for a house.

Insurance meaning: A widely used homeowners form that generally provides open-peril coverage on the dwelling and named-peril coverage on personal property, subject to the actual form and endorsements.

Also called: Special form homeowners policy

HO-4 policy

Simple meaning: A renters insurance policy form.

Insurance meaning: A homeowners-series tenant form designed primarily for renters, generally covering personal property, loss of use, personal liability, and medical payments to others.

Also called: Renters form

HO-5 policy

Simple meaning: A broader homeowners form that may cover the home and belongings on an open-peril basis.

Insurance meaning: A homeowners form that generally provides open-peril coverage for the dwelling and personal property, subject to exclusions, limits, and the issued form.

HO-6 policy

Simple meaning: A condo unit-owner insurance policy form.

Insurance meaning: A homeowners-series form designed for condominium or cooperative unit owners, subject to the unit owner’s responsibilities and the association’s governing documents.

Also called: Unit-owners form

Homeowners insurance

Simple meaning: Insurance that can protect your home, belongings, living expenses, and liability, depending on the policy.

Insurance meaning: A package of property and liability coverages for eligible owner-occupied residences. Forms, covered causes of loss, limits, and exclusions vary.

Hurricane deductible

Simple meaning: A special deductible that may apply to hurricane losses.

Insurance meaning: A separate deductible, often stated as a percentage of insured value or dwelling limit, that applies when the policy’s hurricane trigger is met. State rules and policy triggers vary.

Insurance-to-value

Simple meaning: How the amount of insurance compares with the property’s estimated replacement value.

Insurance meaning: A measure comparing insurance carried with the value used for insurance purposes. It may affect underwriting, pricing, or claim settlement provisions.

Loss assessment coverage

Simple meaning: Condo coverage that may help pay your share of certain covered assessments charged by the association.

Insurance meaning: Unit-owner coverage for specified assessments imposed by a condominium or homeowners association because of covered loss or liability, subject to limits and exclusions.

Loss of use

Simple meaning: Coverage that may help with extra living costs when a covered loss makes the home unusable.

Insurance meaning: Coverage for additional living expense, fair rental value, or prohibited use when triggered by a covered loss, subject to policy terms and limits.

Also called: Coverage D in many homeowners forms

Market value (home)

Simple meaning: What the home and land might sell for.

Insurance meaning: Real-estate sale value. Home insurance dwelling limits are generally based on rebuilding cost concepts, not simply the home’s market price.

Master policy

Simple meaning: The insurance policy bought by a condo or homeowners association for property or liability it is responsible for.

Insurance meaning: An association’s insurance policy covering common property, building portions, liability, or other association exposures. Unit owners should compare it with their own responsibilities.

Matching coverage

Simple meaning: Coverage that may help replace undamaged pieces so repaired property looks reasonably consistent.

Insurance meaning: Coverage or claim treatment for matching undamaged property with replaced damaged property. Availability and legal requirements vary by policy and state.

Medical payments to others

Simple meaning: Small medical-expense coverage for certain people hurt at your home, often without needing to prove you were legally at fault.

Insurance meaning: Homeowners or renters coverage for specified medical expenses of eligible third parties injured by an occurrence, subject to policy terms and limits.

Mortgage clause

Simple meaning: A policy section protecting a lender’s interest in insured property.

Insurance meaning: A property-policy provision describing the rights and duties of a mortgagee and how covered loss payments may be made.

Mortgagee

Simple meaning: The lender that has a mortgage interest in the property.

Insurance meaning: A lender or other party with a mortgage interest that may be named in the policy and receive specified rights or claim payments under a mortgage clause.

Named-storm deductible

Simple meaning: A special deductible that may apply when a storm has been officially named.

Insurance meaning: A deductible triggered by a named storm under the policy’s definition. It may differ from hurricane or wind/hail deductibles.

Ordinance or law coverage

Simple meaning: Coverage that may help pay extra rebuilding costs caused by current building codes or laws after a covered loss.

Insurance meaning: Coverage for specified increased costs to demolish, repair, or rebuild property to comply with ordinances or laws after a covered loss, subject to limits and policy terms.

Other structures coverage

Simple meaning: Coverage for certain structures on the property that are separate from the house, like a detached garage or fence.

Insurance meaning: Homeowners coverage for qualifying structures separated from the dwelling by clear space or connected only by certain structures, subject to policy wording.

Also called: Coverage B in many homeowners forms

Personal liability coverage

Simple meaning: Coverage that may protect you if you are legally responsible for hurting someone or damaging their property.

Insurance meaning: Home or renters liability coverage for covered damages and defense arising from bodily injury or property damage for which an insured is legally liable, subject to exclusions and limits.

Personal property coverage

Simple meaning: Coverage for your belongings.

Insurance meaning: Property coverage for covered personal belongings owned or used by an insured, subject to limits, exclusions, special sublimits, valuation terms, and location rules.

Also called: Contents coverage; Coverage C in many homeowners forms

Personal property inventory

Simple meaning: A list, photos, or records of what you own.

Insurance meaning: Documentation of personal belongings, descriptions, dates, values, and receipts that can help establish ownership and amount of loss in a claim.

Property coinsurance

Simple meaning: A rule that can reduce a property claim payment if too little insurance was carried compared with the required percentage of value.

Insurance meaning: A property-policy provision requiring insurance to a stated percentage of value, often to avoid a coinsurance penalty on partial losses. The formula and percentage are policy-specific.

Important: This is different from health insurance coinsurance.

Recoverable depreciation

Simple meaning: Depreciation the insurer may pay later after you repair or replace covered property and meet policy rules.

Insurance meaning: The portion of depreciation withheld from an initial actual cash value payment that may be recoverable after qualifying repair or replacement under a replacement-cost policy.

Renters insurance

Simple meaning: Insurance for a renter’s belongings, certain extra living costs, and liability.

Insurance meaning: A tenant policy that can cover personal property, loss of use, personal liability, and medical payments to others, subject to form, limits, exclusions, and endorsements.

Replacement cost value (RCV)

Simple meaning: The cost to repair or replace covered property with new property of similar kind and quality, without subtracting for age, when policy conditions are met.

Insurance meaning: A claim valuation method based on replacement or repair cost without depreciation, subject to coverage limits, policy conditions, and any settlement steps.

Also called: RCV

Roof payment schedule

Simple meaning: A rule that can reduce how much the policy pays for an older roof.

Insurance meaning: A policy endorsement or settlement method that bases roof payment on age, material, condition, or a stated schedule rather than full replacement cost.

Scheduled personal property

Simple meaning: Valuable items listed separately on the policy for specific coverage.

Insurance meaning: Property individually described or scheduled by endorsement, often with stated values or broader coverage than the base personal-property form.

Also called: Personal articles schedule

Service line coverage

Simple meaning: Coverage for certain underground pipes, wires, or utility lines you are responsible for.

Insurance meaning: An endorsement that can cover specified physical damage to covered service lines, subject to definitions, causes of loss, deductible, and limit.

Special limit of liability

Simple meaning: A smaller limit for certain types of property or losses.

Insurance meaning: A policy sublimit that caps payment for specified property, causes of loss, or categories such as jewelry, money, firearms, or business property, depending on the form.

Tenant improvements and betterments

Simple meaning: Changes or upgrades a renter makes to leased space.

Insurance meaning: Improvements made or acquired by a tenant that become part of leased property and may need specific property coverage depending on ownership and lease terms.

Unoccupied

Simple meaning: No one is living or staying there right now, but the property may still contain normal furnishings.

Insurance meaning: A condition in which a building has contents but no occupants. Policy treatment can differ from vacancy.

Vacancy

Simple meaning: A property is empty in a way the policy defines as vacant.

Insurance meaning: A policy-defined condition involving lack of occupants and often lack of ordinary furnishings or operations. Extended vacancy can reduce or suspend certain coverage.

Water backup coverage

Simple meaning: Coverage that may help with certain damage from water backing up through a sewer or drain or overflowing from a sump.

Insurance meaning: An endorsement covering specified water-backup losses that are commonly limited or excluded under base property forms. Exact causes and limits are policy-specific.

Wind and hail deductible

Simple meaning: The amount you pay toward a covered wind or hail loss before the insurer pays its share.

Insurance meaning: A separate deductible for covered windstorm or hail losses, sometimes expressed as a percentage of the insured value or coverage limit.

Windstorm coverage

Simple meaning: Coverage for damage from wind when the policy includes it.

Insurance meaning: Property coverage for windstorm damage. In some high-risk areas, wind or named-storm coverage may be excluded from the standard policy and purchased separately.

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