A quick reference for terms specific to homeowners insurance. For terms that apply across every kind of policy, see our General Terms glossary, or the full Insurance Terms index.
Actual Cash Value
What your property is worth today, after accounting for depreciation. This pays less than it would cost to replace something new.
Dwelling Coverage (Coverage A)
Pays to repair or rebuild the structure of your home itself if it’s damaged by a covered event.
Flood Insurance
Covers damage from rising water, which standard homeowners policies do not cover at all. This has to be purchased separately.
Loss of Use (Coverage D)
Pays for extra living expenses, like a hotel or temporary rental, if your home becomes unlivable after a covered loss.
Medical Payments to Others
Pays small medical bills for a guest who’s injured on your property, regardless of who was at fault.
Mortgagee Clause
A provision naming your lender on the policy, since they have a financial interest in your home. This is why a claim check is sometimes made out to both you and the lender.
Ordinance or Law Coverage
Pays for the extra cost of rebuilding to current building codes, which can be significantly more expensive than rebuilding to the old standard.
Other Structures (Coverage B)
Covers structures on your property that aren’t attached to your house, like a detached garage, shed, or fence.
Personal Liability
Covers you if someone is injured or their property is damaged and you’re found responsible, including legal costs if you’re sued.
Personal Property (Coverage C)
Covers your belongings, furniture, clothing, electronics, and so on, if they’re damaged, destroyed, or stolen.
Renters Insurance / Condo Insurance (HO-6)
Coverage for people who don’t own the structure they live in. It covers personal property and liability, and for condo owners, the interior of the unit.
Replacement Cost
What it actually costs to replace or repair your property with something of similar kind and quality, without subtracting for age or wear.
Scheduled Personal Property
Separately listing and insuring high-value items, like jewelry or musical instruments, since your base Personal Property coverage usually caps how much it pays for these categories.
Sewer Backup Coverage
Covers damage caused by water backing up through a sewer or drain. This is usually a separate add-on, not something included automatically.
Read more: Homeowners Insurance Coverage Gaps in New York 192
Read more: Water Backup Coverage, The Basement Flood Gap 192