Homeowners Insurance can be confusing, and picking out the right one for your family can be even more difficult.
Here at Mitchell and Mitchell we try to help make it as easy as possible and keep you informed for the best possible option as well.
Take a look at just a few homeowners insurance terms that you may not already know:
· Deductible – Is the percentage you will have to pay for damage or loss to your home or possessions. When you are paying a claim, your insurance company subtracts the amount of your deductible from what it owes you.
· Effective Age – This measures the wear and tear on your house. The effective age of your house can be more years or can be fewer years than the actual age of your home.
· Force Placed Insurance – If you have a mortgage, and can’t or won’t get homeowners insurance, your lender will “force place” a policy. This means the lender will buy an insurance policy for you and then send you the bill for the insurance. This type of insurance is more expensive and provides less coverage than a regular homeowners insurance policy.
· Partial Loss – When your property or possessions are not completely destroyed, you have a partial loss. It is also if your claim is for less than the limit on your policy.
· Subrogation – The process of when someone else causes a loss and your insurance company then sues them for the loss. If it wins the recovered money may go toward repaying you for your deductible.
For even more terms and definitions click here.
If you have any more questions or need clarification of these terms feel free to give us a call at our toll free number 1-888-512-8878.