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Frequently used terms:

The auto insurance terms and definitions listed below will help you understand what you are buying when you shop for your auto or home insurance.

Glossary

Word Definition
Coverage A This is called "Dwelling", this is the part of your home insurance policy that covers the home itself—frame, flooring and fixed objects. The amount of Coverage A is the cost to replace the structure of your home in the event of total loss. Other coverage amounts are usually based on a percentage of Coverage A.
Coverage B This part of your policy covers "Other Structures" — e.g., barns, sheds, garages.
Coverage C "Personal Property" covers your belongings automatically for 50% of Coverage A.
Coverage D "Loss of Use" takes into account expenses you will have if your home is uninhabitable because of a covered loss. It pays for temporary lodging and living expenses.
Coverage E "Personal Liability" covers you for your legal responsibility for injury caused to others whether on or away from your own property.
Coverage F "Medical Payments" pays medical costs if someone is injured on your property. A homeowner policy automatically covers $1,000. You can increase this coverage in $1,000 increments, up to $5,000. In order to collect more than this, the injured party must file for compensation under Coverage E.