Common Terms Used In Property Damage Policies
Knowing what is covered in your homeowners insurance policy and understanding the wording used in policy documents is important to protecting yourself and your rights in a property damage claim. Our Daytona Beach property damage claims attorney highlights some of the most common terms you are likely to encounter and explain how they are likely to apply in your case.
Terms To Be Alert For When Reviewing Insurance Documents Or Filing A Property Damage Claim
Homeowners property damage insurance protects you against losses in the event of tropical storms, hurricanes, heavy rains, or hail. It also protects you against mold, sinkholes, vandalism, theft, and other adverse events. The Insurance Information Institute (III) advises carefully reviewing all policy-related documents when purchasing insurance and prior to filing a claim.
If you have never taken this important step, you should do so immediately. Even if you have already suffered losses, being alert for certain terms and knowing what they mean can help to ensure you get the maximum amount of compensation you are entitled to in any settlements. Some of the key and most common terms you are likely to encounter include:
- Actual Cash Value: This is one of several terms that pertain to the amount you are reimbursed for property losses. Actual cash value is the price you originally paid for an item, minus any depreciation over the years. Coverage that reimburses you for the current market value is generally preferable, as it represents actual replacement costs.
- Against All Risks (AAR): Rather than listing specific causes of property damages that are covered by your insurance, this is an umbrella term that protects you against all losses other than those specifically mentioned by the insurer.
- Catastrophe: This refers to losses totalling $25 million or more.
- Dwelling Policy: This is a type of homeowner’s insurance policy that excludes liability coverage, which can increase your risk of being sued for injuries others suffer when visiting your property.
- Endorsement: This is a rider that updates, adds to, or helps supplement your existing homeowner’s property damage coverage.
- Exclusions: These are specific situations or conditions that are not covered under your policy.
- Floater: This covers personal property that may be moved from place to place and may not otherwise be protected against damages, such as jewelry and furs,
- Ordinance or Law Exclusion: This pertains to repairs or replacements required to conform to current building codes.
- Personal liability: These relate to losses others suffer that you can be held responsible for in a civil claim.
- Real property: Under the Florida Statutes, real property refers to land and buildings or structures attached to it, such as your home, garage, or shed. Personal property refers to items such as your car, home furnishing, and personal belongings.
Contact Us Today for Professional Help
At Bundza & Rodriguez, we help to ensure you are protected under the terms of your policy and in filing a property damage claim. To review important terms and the circumstances surrounding your case, contact our Daytona Beach residential & commercial property damage attorneys and request a consultation today.