The insurance industry loves its jargon. To minimize confusion and prevent potential gaps in your insurance, here are some common terms explained.

Home Insurance is designed to protect your home against damages to the Structure itself, or to possessions in the home. Home insurance also provides liability coverage against accidents in the home or on the property.

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Property

Home insurance provides coverage for damage to your home and separate structures, such as a detached garage, typically caused by wind, fire, and vandalism (subject to limitations and exclusions). Extended Replacement Cost coverage is available.

Possessions Liability

Your personal property is covered anywhere in the world. Coverage is comprehensive, including many types of damages and broad causes of loss(subject to exclusions). Contents Replacement Cost is included and pays for the cost of repair or replacement without deduction for depreciation

Medical Payments

Pays medical costs for people injured at your residence (other than residents of your household), regardless of who’s liable.

Additional Living Expenses

Covers additional living expenses up to 24 months (depending on the policy type) if a covered loss makes your home unfit to live in.

Bonus Info about optional coverage to ask about

Gaps in insurance can be costly. You can help prevent them by understanding your choices.

Floater Policy

Provides extra coverage for specific items like art, jewelry, collectibles, and more stuff that has a little more value and falls outside the limits of your home policy.

Identity Shield

Provides assistance in the resolution and coverage for losses due to identity theft, credit and public-records monitoring and identity or travel documents replacement

Personal Umbrella

Supplements the liability coverage you already have on your auto and home policies, providing an extra layer of coverage when you need it most. (Your home policy must have certain limits in order for your to qualify.)

Earthquake

Earthquakes are not covered under your home policy. Earthquake insurance can provide reimbursements for damage to your home resulting from an earthquake, but must be purchased separately.

Flood

Flood is another natural disaster that is not covered under your home policy. Coverage for flood is available from the National Flood Insurance Program.

Understand Your Coverage Before You Need It.

“As your Farmers Agent, it’s my job to make you smarter about potential gaps in your insurance. After all, the more you know, the better you can plan for what’s ahead. ”

— Matt Jackson