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What you should know about home insurance phrases.


Buying your first home is a big endeavor. It’s exciting, thrilling, and confusing! There are so many new real estate terms and acronyms to learn, it can be difficult to understand what they all mean. When it comes to finding home insurance, you’re faced with a whole new set of words and phrases. To help, we’ve rounded up some of the top terms you should know as a first-time home insurance buyer.



The deductible is the way policyholders and insurers share the cost of coverage. A deductible is an amount that you pay in the event of a claim before coverage kicks in. Generally, a higher deductible means lower monthly premiums, but a higher out-of-pocket responsibility in the case of a claim.


Liability Insurance

Your home insurance policy will have a liability section that protects you and your family from legal claims that result from injuries that occur on your property. Liability also covers the medical costs and compensation for these damages, as well as legal fees for your defense.


Dwelling Protection

This cover protects the nuts and bolts of your home as well as the components that are actually attached, from carpeting and fireplaces to garages and decks. If these areas are damaged by a fire or storm, you can turn to your policy to help you repair them.


Actual Cash Value (ACV)

This is the actual cash value of lost or damaged property at the time of loss or damage. Keep in mind that this value takes depreciation into account.


Replacement Cost

This is the cost of replacing damaged or lost property at the current market value, not taking into consideration depreciation. This type of coverage better protects your items so that they can be replaced with items of similar quality.


Additional Living Expense

If something happens to your home that makes it uninhabitable while repairs are in progress, this coverage will pay for your temporary housing, additional transportation costs, laundromat fees, and even pet boarding. Depending on your needs and the needs of your family, a daily allowance will be established.


Do you need help deciding which homeowners insurance policy to purchase? Visit Abbate Insurance for your insurance policies in New Haven and neighboring cities in Connecticut!

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