Understanding Difficult Terms in Your Homeowners' Insurance Policy

Understanding Difficult Terms in Your Homeowners' Insurance Policy

Insurance policies often times use terms that aren't common in casual conversation. Many of the terms are technical and legal. Without prior knowledge of these terms and their definitions, you may not understand the policy you are trying to purchase. When you file property claims in central Florida, you want to know what you are getting into before the process even starts.

Why is it important to know these terms? You must be able to read and comprehend what your policy states. If you don't you may be paying a premium for coverage that doesn't fully protect your best interest. In order to ensure that your property is covered in the event of damage, make sure you understand these difficult terms in the policy for your homeowners' insurance.


A deductible is a cost you agree to pay that is based off the insured property's value. You only pay this deductible when you are filing a claim with your insurance. This is a portion of the claim you are filing that falls under your responsibility to pay.

Replacement Cost

Replacement cost is a term used to refer to the cost of replacing property regardless of the value depreciation over the years since the policy was signed. When resolving your insurance claim, you will find that this is only one of two ways that property is replaced.

Actual Cash Value

Actual Cash Value policies will only cover your property up to the cost of what it is worth at the time of the claim. If your policy was taken out 10 years ago, there is a chance the property has depreciated in value. With an actual cash value policy, you will get what it is worth as is in the market as opposed to what it was worth when your policy was made.


An individual that can vouch for you, confirm the accuracy of your statements, and is able to support your ability to hold up your end of an agreement is known as a Guarantor.

Ice Dam

During the winter, ice has a nasty habit of clogging gutters. This will cause a back up of snow and water. When this backup occurs, it will begin to seep into the shingles and down into the walls of your home. This will cause significant damage to your house. This is what is known as an ice dam.

Mortgage Insurance

Mortgage payments can go on for a long time, and in some cases, even lifetimes. In many unfortunate cases, they can last even longer. Mortgage insurance will ensure that the remainder of your mortgage is payed back if you are unable to pay due to disability or death.

If you are having trouble understanding your policy or going through the claims process, you may want to trust our advocates to help you. Our adjusters are here to help with any of your property claims in central Florida. Contact Ultra Property Damage to hear more about our services today.

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