Glossary of Homeowner's Insurance Terms

• ACTUARY - An insurance professional that analyzes insurance information to determine risk and value for the company that they represent. Actuaries along with insurance underwriters are responsible for keeping an insurance company profitable.
• ADDITIONAL LIVING EXPENSES - This coverage allows for living expenses when you are forced out of your home for a period of time, such as during repairs or after a fire. The insurance payout is usually fairly quick and can be used to pay for hotel, food, temporary clothing, etc.
• ADJUSTER - An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.
• BURGLARY AND THEFT INSURANCE - Insurance for the loss of property due to burglary, robbery or larceny. It is provided in a standard homeowner's policy and in a business multiple peril policy.
• FARMOWNERS-RANCHOWNERS INSURANCE - Package policy that protects the policyholder against named perils and liabilities and usually covers homes and their contents, along with barns, stables and other structures.
• FLOATER - Attached to a homeowner's policy, floaters insure property theft or loss on items no matter where they occur. An example of a need for a floater policy would be jewelry, if it were lost or stolen while you were away from home.
• LIMITS - Maximum amount of insurance that can be paid for a covered loss.
• PREMISES - The particular location of the property or a portion of it as designated in an insurance policy.
• PREMIUM - The price of an insurance policy, typically charged annually or semiannually.
• WATER-DAMAGE INSURANCE COVERAGE - Protection provided in most homeowner's insurance policies against accidental and sudden water damage, from burst water pipes for example. It does not cover damage from problems arising from a lack of proper maintenance such as dripping air conditioning units. Water damage from floods is covered under independent flood insurance policies issued by the federal government.

These terms are some of the many reasons to have insurance for the different types of events that may occur.