Insuring Your HomeInsuring Your Home

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Insuring Your Home

When we started thinking about buying a home, I realized that we had a boatload of work to do. I knew that we needed to save up a down payment, talk with a mortgage broker, and most importantly--figure out what we were doing about homeowners insurance. Fortunately, a friend of mine told me about a great insurance broker in our area who handled that kind of thing. We met with her to talk about our options, and before we knew it, we had found a policy that really melded with our budget and lifestyle. This blog is all about insuring your home.



Car Insurance Terms Defined

As a driver, the world of insurance is a bit of a challenge for you. Many drivers feel the same way, which is why 13% of them drive cars with no insurance. Here are examples of common terms used in insurance that will help demystify insurance and encourage drivers to get coverage.

Is Fault Covered

In personal auto insurance, fault refers to the responsibility for causing an accident. Fault determines whose insurance will cover the accident. The one at fault will have to pay the damages but not before a transparent process of determining fault has concluded.

Covered losses are damages your insurance company will pay for you. A covered loss could be damage to your car, your person, another person's property, or another person. As you buy your auto insurance coverage, read the policy carefully to understand what the insurer covers. The scope of coverage is sometimes up to you since you get what you can purchase. 

The Deductible on the Declaration Page

Your insurance declaration page summarizes what the insurer is offering. On the declaration page, the coverages the insurer offers are summarized along with those that you choose. The cost of the coverage and the limitation of the coverage are also summarized.

The deductible is also accounted for on the declaration page. In fact, the deductible is like a limitation to the coverage. Deductibles are what you have to part with when you have a claim. Your deductible is far less in comparison to what your insurer has to produce to cover the claim. 

If, for instance, your deductible is $250 for your comprehensive cover and a tree falls on your car, causing $5000 damage, you will pay $250 and your insurer the balance of $4750. Deductibles should not make you frown at insurance, especially since about 721,885 cars were stolen in 2019 alone.


Premium refers to the money you cough up for your personal auto insurance. Premiums differ from company to company based on what the insurer feels is essential. Get different quotations from insurance companies before you decide on one particular one just for being a low price.

Your place of residence, driving record, and age will influence the premiums charged by insurance companies. Your car type and the purpose of the car will also influence premiums. Most insurance companies will also consider your deductibles and credit score as they come up with the right premium to charge.

In Conclusion

There are many other terminologies worth learning, including limitation of coverage, claim, and liability. It pays to thoroughly understand what you are purchasing before you spend money and end up feeling inadequately covered. Compare different personal auto insurance policies before you settle for one.

For more information about car insurance, contact a local insurance provider.