Homeowner Coverages


Homeowner Coverages

Actual cash value coverage (ACV)

Actual cash value is a repayment value for loss or damage to property covered under your homeowners insurance policy. It is your property’s value at the time of loss minus depreciation. ACV is also known as market value.

If your homeowners or renters insurance policy includes actual cash value coverage and your laptop is stolen, your policy could pay an amount that is equal to the depreciated value of the laptop. If your homeowners or renters insurance policy carries replacement cost coverage, however, your policy could pay for a brand new laptop.

Additional living expenses coverage

If your homeowners policy includes additional living expenses (ALE) coverage and your home is damaged, your policy can cover necessary temporary living expenses if you’re forced to move out of your home while it’s being repaired. 

Building code coverage

This optional coverage, also known as building ordinance coverage, can cover the additional cost of bringing your home up to required code after a covered loss. 


Bundling refers to combining multiple types of insurance from the same carrier. For example, people often bundle their homeowners or renters insurance with their car insurance, which can result in significant savings.


A claim is a policyholder’s request to be reimbursed for a loss covered by their homeowners insurance policy.

Covered loss

A covered loss is any damage to your home, yourself, other people or property that is covered under your homeowners insurance policy.


A deductible is the portion of a covered loss that the policyholder is responsible for paying before the insurance provider pays after the policyholder files an insurance claim. Higher deductibles typically translate to lower premiums, but that also means the policyholder assumes a greater amount of financial responsibility in the event of a loss.


Depreciation is the loss in value of property due to age, wear and tear, or becoming outdated.

Dwelling insurance

Dwelling insurance is another term for homeowners insurance.

Earthquake insurance

Losses due to earthquakes are not covered under the standard homeowners insurance policy. Earthquake insurance covers damages caused by earthquakes and other earth movement, such as landslides or mudslides, and can be purchased at an additional premium.


An endorsement, or rider, is any change made to your original insurance policy. These changes include changing your policy limits, adding or removing coverage, and making other adjustments.

Equipment breakdown coverage

Equipment breakdown coverage can help cover the expenses associated with repairing or replacing covered equipment, including but not limited to: ventilation systems, power panels, water heaters, backup generators, and laundry and kitchen appliances.

Extended replacement cost coverage

If you lose your home, extended replacement cost coverage can pay more than your policy limit (usually a percentage) to cover the replacement cost of your home. This type of coverage usually results in a lower premium and can also provide a boost in coverage if you need to replace your home.

Flood insurance

The standard homeowners insurance policy does not include flood insurance, so it must be purchased separately. Personal Express offers coverage for flood damage through the National Flood Insurance Program.

Homeowners insurance

Homeowners insurance is a type of property and casualty insurance that provides coverage for the insured’s primary residence. A standard homeowners insurance policy includes coverage for liability, personal property and damage to the primary structure and secondary structures, such as a detached garage, shed or other storage structures on the home’s property.

A homeowners insurance policyholder must either own or be making mortgage payments on their home.

If you rent your home, your landlord’s insurance policy protects your home’s structure. You can purchase renters insurance to protect your belongings.

Homeowners plus coverage

Homeowners plus coverage provides personal injury coverage and increases special limits on coverage, including: money, securities, watercraft, loss by theft of jewelry, art or other high-value items, ordinance and law, and key and lock replacement.

Identity theft coverage

Identity theft coverage is an optional insurance coverage that can provide resources and support for restoration if you are ever a victim of identity theft. This type of coverage can repair your standing with credit rating agencies.


An insured is the individual who is protected under an insurance policy. They are also referred to as the policyholder.

Landlord insurance

If you own a property that you rent out full-time, landlord insurance can help protect your personal liability, which the standard homeowners insurance policy does not typically cover. Landlord insurance protects the building’s structure and contents, as well as your finances if you’re ever taken to court for property damage or injuries.

Life event

A life event is any occurrence that significantly changes a person’s life, such as marriage, divorce, pregnancy, the birth of a child, a serious medical diagnosis, or the death of a spouse or relative.


An insurance policy’s limit is the maximum dollar amount of protection purchased by the policyholder for a particular type of coverage. It is the maximum amount an insurance company will pay per coverage, per covered loss.


A loss is direct or indirect damage to a person or property.

Loss of use coverage

This coverage can help pay for temporary living arrangements and additional living expenses that exceed what you’d normally spend if your home is ever deemed uninhabitable due to a covered loss.

Medical payments coverage

Medical payments coverage is often included on the standard homeowners insurance policy. If someone is injured on your property, medical payments coverage can reimburse the individual’s medical expenses up to the limit purchased. This type of coverage does not apply to you, your family or regular residents of your home. It is also known as medical expense coverage.

Minimum limits

Minimum limits on an insurance policy are set and may be required by state laws. Contact your local Personal Express agent for details about your region.

Named insured

Named insured is another term for primary policyholder.

Other structures coverage

Other structures coverage is usually included on the standard homeowners insurance policy. It provides protection for the structures on your property that are detached from the home, like fences, detached garages and outbuildings.

Out-of-pocket expenses

Out-of-pocket expenses are expenses that you pay in addition to what your homeowners insurance policy covers when you file a claim.


A peril is anything that can result in damage or loss to your property. Perils range from everything from theft, to smoke, to falling objects.

Personal liability coverage

Personal liability coverage is an optional coverage that can protect you from claims made against you for injuries of others occurring on your property, and provides coverage for legal fees. For example, if someone visiting your house slips and falls and is injured, any resulting claim would be covered under the liability coverage of your homeowners policy.

Personal property coverage

This type of coverage is usually included in the standard homeowners insurance policy. It provides financial protection if your belongings are stolen or damaged by a covered loss. It also usually protects your property whether you are at or away from home.


A policy is a contract between you and your homeowners insurance provider that declares what the provider will cover, the terms and conditions, and how much you’ll pay for coverage.


A premium is the amount you pay for your insurance policy. It is also referred to as a rate or an insurance premium, and is determined by a number of factors, including but not limited to the state you live in and the size of your home.

Primary policyholder

The primary policyholder is the person who pays for and is issued the insurance policy, and serves as the primary point of contact with the insurance carrier.

Primary residence

Your primary residence is the place you live the majority (more than 50%) of the time.

Property and casualty insurance

Property and casualty insurance, or P&C insurance, provides financial protection for homes, businesses, vehicles and other assets in the event of a loss. While property insurance typically protects the physical property, casualty insurance (or liability insurance) protects policyholders from legal liabilities resulting from injury or property damage to another party.


A quote is an insurance premium estimate that is determined by an insurance agent or insurance company.

Renters insurance

If you rent a home, condo or apartment, your landlord’s insurance policy protects the physical structure of your home. You are responsible for insuring the things inside it. Renters insurance protects you and your possessions in the event of theft, vandalism, liability and other damages. It protects your belongings whether they are in your home, your car or taken with you on vacation.

Replacement cost coverage

Replacement cost is the amount of money required to replace damaged or stolen property with a new item. If your homeowners or renters insurance policy includes replacement cost coverage and your laptop is stolen, your policy could pay for a brand new, comparable laptop.

If your homeowners or renters insurance policy includes actual cash value coverage, however, your policy could pay an amount that is equal to the depreciated value of your laptop.

Scheduled personal property coverage

The standard homeowners insurance policy typically provides coverage for personal property, but it may set a dollar limit on how much it will pay for certain types of valuables, such as jewelry. Scheduled personal property coverage is an optional add-on that provides additional protection against more risks for high-value items, such as jewelry, art, musical instruments and expensive electronic equipment.


The term is the length of time covered by an insurance policy.

Total loss

A total loss is a decision made by an insurance carrier in which the repair costs of the damaged property exceed to value of the insurance policy.


An underwriter reviews insurance policy applications and establishes the terms and conditions of coverage if approved.


*Each state regulates homeowners insurance differently. As such, some of these terms and definitions may vary from state to state.