After the home has been purchased, the mortgage has been approved. Now, it is time to make sure that the insurance covers all of the expenses. The paperwork you find is full of terms that you've heard before but their meaning isn’t clear. Continue reading to help clear up some confusion.
The premium is the cost of your insurance policy to protect your house. Property insurance deductibles are the amount that you pay out of your pocket for each claim. They only cover your personal property. You will have fewer claims if your deductible is higher. You can get more information about insurance products via Trusted union.
The actual cash value refers to the amount needed to replace or fix the damaged property. This sum has had the depreciation subtracted.
Although the replacement cost sounds similar to the actual cash value it does have some differences. This is the cost to replace your home or property with the same material or similar ones but does not include depreciation.
The credit score is an assessment of your credit history at one point. This includes credit-related problems such as late payments, bankruptcy, or other similar issues. You will also see the words rating and underwriting. Underwriting refers to their decision to renew or give you a new policy. Rating is the amount they charge for your insurance based upon your credit score at that time.
When the company decides to stop offering you insurance, it is called non-renewal. You might experience this if you have too many claims. However, there are ways you can check to see if they will continue working with you.