Terms of homeowners insurance

For most people, there isn’t anything more valuable than your home.  That is why you should check with the Alcorn Insurance Agency in Centralia, IL to make sure you have the correct coverage. There are a lot of things that can change your coverage depending on your situation. It is a good idea to know some of the terms used in the industry. Here are some words you should know when it comes to homeowners insurance.

Actual cash value: This is what it would cost to replace a covered item.  If you have a 10-year old couch you paid $1,000 for, you must realize it is not worth that much today. You would get what it costs to replace a 10-year-old couch instead of a new one.

Market value: This is similar to actual cash value, which is the price something would bring at the current time based on its age and condition.

Liability: This is a policy that pays for damages that are your fault, though not intentional. This could be like someone slipping on your sidewalk.

Replacement cost: What it costs to restore your property.  This would mean a new couch, from the above example.  This could also apply to an older house with masonry done by hand, which would be very expensive today. If you wanted that replaced exactly has it was, the policy would cost more.

Depreciation: This is the decrease in value of property, due to time, wear and tear.

Floater: A floater policy covers items that may be moved out of your house, and is not part of a typical policy. This can be things like furs, jewelry or cameras.

These are just a few of the terms you need to know when buying home insurance. Visit the Alcorn Insurance Agency in Centralia, IL to make sure you have the coverage you need, and that you correctly understand the terminology involved.