Common Property Insurance Terms
Home, cottage or condo - finding the property insurance policy that suits you best is our goal! You can leave the details up to us, but here are the terms you are likely to run into while reviewing your policy documents.
Protection That Begins with Understanding
Your home, cottage or condo is more than a place of comfort and safety for you and your family, it is also a valuable asset that needs to be protected.
Whether you're a tenant or a homeowner, we'll take the time to assess your situation and tailor a package that offers the best protection for you. We understand your situation and how to ensure you get the coverage you need.
While a homeowner or property insurance policy is not required by law, most people have one to ensure that their investment and their personal belongings are protected. Property Insurance affords you the ability to replace and rebuild your belongings after a disaster.
A standard property insurance policy provides coverage for your home and belongings in the event of a “destructive” incident. The typical destructive events are flooding, fire, hail or wind. It can cover anything from the structure itself, to personal property – furniture, artwork, technology, etc. – as well as detached structures that are within the confines of the property, such as fences and sheds. Most policies also cover your liability for any injuries or property damage that you or your family cause to others.
- Single Family Home
- Townhomes & Duplexes
- Tenants Coverage
- Residential Rentals
- Guest House
- Seasonal Property
- Mobile Homes & Camper Trailers
Property insurance protects your home and premises in the event of damage, theft or loss, and offers liability coverage for medical payments in case someone is injured on your property. It can also mitigate the risks associated with working from your home.
This is the amount you pay out-of-pocket for each claim before your insurance policy kicks in to cover the costs of the claim
This is the amount of money an individual or business pays for an insurance policy. This is the amount you pay for the policy. Policyholders may choose from a number of options for paying their insurance premiums. Some insurers allow the policyholder to pay the insurance premium in installments—monthly or semi-annually—while others may require an upfront payment in full before coverage starts.
An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy. An endorsement may be used to add, delete, exclude or otherwise alter coverage. The insurance endorsement is a legally binding amendment to the insurance contract.
An insurance claim is a request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event. The insurance company validates the claim and, once approved, issues payment to you, or to a party on your behalf.
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Protects you financially if you unintentionally cause bodily injury or property damage to others. In an accident where you are charged with injuring another person or damaging his or her property, liability insurance pays the cost of your legal defense, as well as the cost of any damages for which you are found legally responsible.
Protection for your home itself and attached structures, permanently installed outdoor equipment on your property, outdoor swimming pools and attached equipment on your property, and materials and supplies located on or adjacent to your property that are being used to build, alter or repair your home or detached private structures on your property.
- Contents Insurance
Covers your belongings (including when you travel) for losses resulting from the most common types of perils (or risks) up to a specified amount. You should have enough Contents Coverage to repurchase everything you currently have as personal belongings inside your rental. Tip: Update your personal belongings inventory at least once a year. Photograph or videotape all your belongings and keep a record of serial numbers and receipts where applicable in a secure location (such as a safety deposit box.) If you ever make a claim, your visual record of the missing or damaged items will make the process much easier.
- Property in Your Vehicle
Your policy provides coverage for theft, attempted theft or burglary of personal property that is inside or on any automobile that is parked on or away from your premises.
- Additional Living Expense
“Additional Living Expenses” is used to cover the cost of alternate accommodations and living expenses for those who are not able to return to their home as a result of insured damage. Additional Living Expenses will provide you with money to allow you to maintain your usual lifestyle, and compensate you for the additional costs of living elsewhere when your home is destroyed or uninhabitable until it is repaired or replaced, or until the "Additional Living Expense" limit is reached on your policy.
- Water Damage Protection
Sewer Back-up: If water enters your unit through your toilet, tub/shower or sinks and causes damage, this coverage helps you to replace your personal property that is damaged. Overland Water: This coverage can protect you from sudden direct physical loss or damage caused by: a) flood; b) unusual and rapid accumulation of groundwater; or c) surface water; or d) Mass Evacuation as specified in your policy.
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Additional Coverage Options
- Scheduling High Value Items
Since your property policy is protecting your belongings, you have the option to add extra coverage for specialty items, such as jewelry, artwork or collectables. This is called “scheduling” and it lets you cover these items in particular, noting their higher value.
- Claims Free Discount
If you’ve been an excellent driver and have no accidents on record, you may qualify for a claims (sometimes called collision) free discount. Typically, if you have not filed a claim within the last 6 years, and you have not been at fault of any incidents, you would qualify for this additional discount. What you may also qualify for, by having your claims free discount, is accident forgiveness. Some insurance companies will let you keep your claims free discount even if you have an accident, as a testament of their appreciation to your typically safe driving techniques.
- Mature Homeowners
Some insurance companies will offer a specific mature homeowners’ discount, while others will automatically factor your age into your premium and give you a lower rate if you are over a certain age (this age varies by insurance company).
- Multi-Line Discount
Bundling gives you the opportunity to receive a “multi-line discount” on your insurance. Discounts range from 10 to 15 percent. This variation depends on the type of policies you are bundling, the number of years you have been insured, and the insurance company you are with. The most common type of bundle includes a property and a vehicle, such as your homeowners insurance bundled with your vehicle(s). However, this is by no means the limit to your options. There are many different types of bundles available, and we are able to build one with almost any personal insurance policy.
For homeowners who have paid off their mortgage, you are rewarded with this additional discount on your property insurance policy.
- New Home
Some insurers offer discounts on property insurance for newer homes, while others automatically factor the age of a home into their calculations and offer lower rates for newer homes right off the bat. The percentage of savings may decrease as the home gets older.
- Alarm discounts
Many insurance companies offer a reduced price to homeowners with a monitored security system. Burglar systems deter would-be thieves, reducing your chance of being the victim of a break-in.
According to the National Fire Protection Association, 17,600 house fires were caused by smoking in 2011. Insurance companies want to avoid fire, so they may offer some savings for people who don’t smoke.
Your quote. Your way.
At McConville Omni, your London & St. Thomas insurance company, we take the time to get to know you – so that we are fully confident that we are bringing you the very best insurance coverage for you, your family and your business.