Basic home insurance terms to know

If you’re interested in acquiring a home insurance for your own peace of mind, in this article you’ll find basic terms that you’ll hear throughout the process, therefore, it’s going to be valuable knowledge in your search process.

First of all, you have to know that right here on this page, you’ll find a number of insurance companies working near you and offering homeowners insurance, you just have to enter your zip code and select the business(es) you want to connect with.

Now, to talk about insurance policies can be confusing because there are a lot of specific terminologies that not all of us know and that’s totally normal.

Here, we’ll try to explain you some key terms to know before getting a homeowners insurance:


You could request the insurance company for reimbursement of the home insurance policy for a loss to property.


Written communication against an insurance company or agent expressing a grievance.


What you must pay in case of a loss before any payment is done by the company.


Decrease in the value of property over time.

Home warranty:

Service contract to help pay for repairs and replacements of covered household appliances and home systems.

Homeowners insurance:

Type of property insurance that protects against losses and damages caused by covered perils.

Liability coverage:

Financially protects you if you are sued and found legally responsible for someone else’s injury or property damage.

Market value:

Current value of a property, price of land included.


Events like fire, windstorm, flood or theft that may damage your home or belongings. The perils covered by a homeowners insurance are specified in the policy.


Contract issued by an insurance company to the insured.

Policy owner:

Usually is the person paying the premium and the only one able to modify it. This person may be the insured, the beneficiary, or someone else.

Public insurance adjuster:

An individual negotiating a claim with the insurance company in exchange for a percentage of the final settlement. They must be licensed by TDI.


Process done by an insurance company to decide to reject or accept an application for a policy.

Soon we’ll have much more content to help you find the ideal home insurance for you.