Mastering Key Home Insurance Terms

Before purchasing a new home insurance policy, it’s crucial to familiarize yourself with key terms and concepts. At Bridgeway Insurance Group, serving the greater Montgomery, AL area, we believe that informed choices foster better coverage, ensuring peace of mind for homeowners.

Premium

The premium represents your insurance coverage cost. Typically, it’s paid monthly or yearly to keep your policy in operation.

Deductible

A deductible signifies the amount you pledge to pay from your pocket before your policy benefits kick in. A higher deductible generally results in lower premiums but usually requires a larger initial payment when filing a claim.

Coverage Limits

Coverage limits pertain to the highest amount your insurance provider will compensate for insured losses. Reviewing and comprehending your policy’s coverage limits is important to ensure your home and personal effects are adequately protected.

Liability Coverage

Liability coverage is your financial barrier if you’re found responsible for another’s injury or property damage. It addresses legal fees, medical expenses, and settlement costs up to your policy limit.

Actual Cash Value vs. Replacement Cost

Actual cash value refers to your property or belongings’ current market value after accounting for depreciation. In contrast, replacement cost coverage pays to repair or replace your possessions without factoring in depreciation.

Exclusions

Exclusions are specific events or circumstances that your insurance policy doesn’t cover. It’s essential to scrutinize your policy’s exclusions to comprehend risks that may not be insured.

We at Bridgeway Insurance Group, dedicated to serving the greater Montgomery, AL area, vow to assist homeowners in navigating the intricacies of insurance. Our seasoned agents are ready to steer you on course. Connect with us now to gain more insight.