The insurance industry terms can be confusing. There’s a lot to consider when taking out an Illinois homeowners insurance policy, or any insurance for that matter. It doesn’t always help that policies vary from one provider to the next, and that insurers seem to have their own language. Here’s a brief introduction to some of the key terms:
Premium – the amount you pay for your insurance policy. This might be paid monthly, quarterly or as an annual sum. Premiums vary according to your location, the size and value of your home, your claims history and other risk factors.
Deductible – the amount that you will need to pay in the event of a claim. This tends to be around $250 or $500. Choosing a higher deductible may lower your premiums.
Home – in insurance terms, this refers to the residential building itself and includes domestic fixtures. Depending on the policy it will generally also include clothes line, external blinds and awnings, aerials, satellite dishes and built-in barbeques.
Contents – this refers to any ‘unfixed’ household goods or personal items. Contents include everything from furniture to kitchen utensils to cameras, jewelry, electrical appliances and even indoor plants.
Option – refers to extra cover than is not already included in the standard policy.
Exclusions – events that aren’t covered by your policy.
Reading through information relating to Illinois homeowners insurance can be a chore, but it’s important that you do, and that you’re aware of conditions attached to your policy, limits on cover for particular categories, and of course, events that are not covered by your policy, like floods.