Home Insurance Definitions

Dwelling Limit- Provides coverage for the dwelling on the residence premises.  Limits reflect an amount that will allow you to rebuild your home.


Other Structures- Provides coverage for fences, driveways and walkways as well as other structures on the residence premises not attached to the dwelling, including structures connected to the dwelling by only a fence, utility line, plumbing or similar connection.

Personal Property- Provides coverage for personal property owned or used by any insured while it is anywhere in the world. 

Loss of Use- Provides coverage for increased expenses when a home is uninhabitable following a covered loss.

Personal Liability – Provides bodily injury or property damage coverage for damages which an insured is legally liable up to the limit of liability shown. This includes defense cost for the company appointed counsel.

Medical Payments to others- Provides coverage for the payment of necessary medical expenses of non-insureds incurred as a result of a covered accident causing bodily injury.

Optional Coverages

Extended Dwelling Coverage- Provides up to an additional percentage of the dwelling coverage amount should repair or replacement exceed the original dwelling coverage amount.

Homeowners coverage is designed to reconstruct a home under normal conditions after a total loss. But in the event of a catastrophe, soaring demand for building materials and labor could cause reconstruction costs to increase (up to 50% in some cases), leaving policy limits inadequate. That's where Extended Dwelling Coverage kicks in.

Additional Protection – You can select up to 25% or 50% of additional coverage.

Loss Assessment – Provides coverage for assessments which result from a peril covered under the policy which are charged during the policy period against the insured by the association of property owners up to the limit of liability.

Sewer & Water Back-Up for Building and Contents- Provides coverage for building and personal property when a loss occurs caused by water which backs up through, or overflows from, a sewer, drain, sump, sump pump, or any system on the residence premsies designated to remove subsurface water from the foundation area. This coverage does not apply if the loss is flood induced.

Building Ordinance or Law Coverage- Increased limits are available to increase coverage for requirements to comply with any ordinance or law that regulates the construction, repair or demolition of the dwelling following a covered loss.

Identity Recovery Coverage- Provides coverage for expenses, including help-line assistance and case management services, to assist a customer with the recovery of their identity following a covered ID Theft loss.

Recovering from identity theft—which affected 8.1 million people in 2010* — can be a very costly, time consuming, and stressful experience.  With Identity Recovery Coverage, you can replace that worry with calm, for about $1 a month. Should you ever find yourself the victim of identity theft, we’ll be there to support you with:

Case Manager – At no additional charge, a dedicated case management company works directly with you to work through the claim process.
High Annual Limit and No Deductible – Expense reimbursement up to $25,000 annually for expenses incurred after identity theft.
Lost Wages and Child or Elder Care Expenses – Up to $250 per day/$5,000 total.
No Adverse Premium Impact – Any claims made under this coverage option will have no impact on future premiums

Special Personal Property Coverage- Personal Property may be extended to include additional risks of physical loss (with certain exceptions).

Protection for All Personal Property – Except as specifically excluded, a customer's personal property is covered against all losses, including mysterious disappearance.

Note:  These selling points are specific to homeowners; content may not apply to renters or condo.

Personal Property Replacement Cost:  Personal Property (Coverage C) is extended on a replacement cost basis to most items of personal property

For just a small percentage of additional premium, our Personal Property Replacement Cost coverage extends full replacement cost coverage to personal property like televisions, stereos and computers.  It's an important upgrade from a standard homeowners policy, which takes into account depreciation and settles personal property losses on an actual cash value basis.

Full Replacement Cost – Covered losses are settled for either the cost of an identical item, or of a comparable item if the lost item is no longer manufactured, with no deduction for depreciation.

Personal Offense Coverage:   Provides liability coverage for injury arising out of personal offenses, including but not limited to, false arrest, detention, libel, slander or defamation of character and invasion of privacy.

Most people never think they'll be sued for libel or slander. And yet a simple post on a social networking site or a blog that harms another person's reputation could lead to a lawsuit costing thousands of dollars in legal fees and damages. For less than a dollar a month, Personal Offense Coverage can protect your customers in the event they are the targets of such a lawsuit.

Broad Range of Protection – Covered personal offenses include false arrest, detention, imprisonment or malicious prosecution, libel, slander or defamation of character, invasion of privacy, wrongful eviction, and wrongful entry.

Equipment Breakdown Coverage:  Optional coverage that provides coverage for accidental direct physical loss to covered property caused by equipment breakdown (limit and deductible apply). The wear and tear exclusion in the policy applies to this coverage. Covered losses must be direct, accidental and sudden, such as a broken part or electrical arcing. Routine performance failure due to age is not covered. Not available with all insurance carriers for additional details please speak to an Intermountain West Insurance Producer.

For just $2 a month, Equipment Breakdown Coverage is a cost-effective way to keep critical household equipment up and running after a mechanical or electrical breakdown—which are often not covered under a standard Homeowners policy. Some of the coverage highlights include:

Broad Coverage – Home mechanical, electrical, and electronic equipment is covered including appliances, heating and cooling systems, televisions and computer equipment.*
High Limit and Low Deductible – Coverage up to $50,000 and a deductible of just $500.
Energy Star – After a loss, provides a greener replacement by covering the additional cost to replace non-Energy Star® equipment with Energy Star® rated equipment (up to 125% of value to repair or replace).
Expedited Repair or Replacement – Accelerates recovery by paying the extra costs to expedite repair or replacement (up to $3,000 per occurrence).
No Adverse Premium Impact – Any claims made under this coverage option will have no impact on future premiums or agent loss ratio.

Note:  The policy wear and tear exclusion applies to this coverage.*

Valuable Articles Coverage:  Optional Coverage that provides 'all perils' coverage for certain classes of property. Coverage is available on a blanket (grouped) bases or an itemized (scheduled) basis.

Grouped (Unscheduled)
Scheduling each item of personal property can be time consuming and costly. Grouped coverage is designed to provide you and your customers with an affordable and easy alternative. Available for fine arts including collectables such as figurines and glass with breakage coverage, cameras, furs, jewelry and silverware, it offers blanket coverage for a wide range of perils—including burglary, which accounted for $4.6 billion in lost property in 2009.**

Easy Coverage – Customers can simply increase or decrease the limit as the amount of total property changes, without having to modify schedules.
High Limit and Low Deductible – High limits are available, subject to a maximum per item limit of $5,000. A deductible of $500 applies per loss.

Itemized (Scheduled)
For customers who want the ultimate protection, they may specifically schedule their items.

Additional Classes of Property – Additional classes of property are available on a scheduled basis, including valued jewelry such as wedding rings, stamp and coin collections, musical instruments and others.*
Agreed Value and No Deductible – With an agreed-upon value for each item of fine art and jewelry, and no deductible, the claims experience is straightforward and simple.

**Source: FBI Crime in the US, 2009

Earthquake Coverage- Optional Coverage that provides protection for direct physcial loss resulting from an earthquake (limits and restrictions apply).

Refrigerated Products- Provides coverage for loss to covered property stored in freezers/refrigerators (limit and deductible apply).

Incidental Farm Coverage- Package of coverages for certain exposures presented by eligible incidental or “hobby” farming.

Landlord Furnishings- Optional coverage that provides personal property coverage for certain landlord’s furnishings, on a named peril bases, located on the residence premises and rented to others (limit applies).

Home Business Package- Package of coverages for the home-based business customer. Includes coverage for business personal property, business merchandise, other structures used for business and limited business liablility.

Extension of Owner-Occupied Dwelling Liablility- Option to extend liability to secondary locations owned by the insured (i.e. secondary or seasonal location etc).

Outboard Motor Liability- Optional coverage that extends liability coverage to an outboard motro or combnation of outboard motors (limits and restrictions apply).

Home Day Care- Optional coverage that provides liability coverage for home day care services at the residence premises. (limits and restrictions apply.)