Meta Title: Home Insurance 2025 – Simple Complete Guide to Protect Your Home and Finances

Meta Description: Discover everything about home insurance in 2025 – how policies work, coverage types, replacement cost vs ACV, exclusions, endorsements, pricing factors, disaster risks, condo/landlord/short‑term rental situations, claim steps, checklists, case studies, 50+ FAQs, and a plain‑English glossary.

1. What Is Home Insurance and How It Works
1. Why Home Insurance Matters in 2025
1. What a Standard Policy Covers (HO‑1 to HO‑8 at a glance)
1. Dwelling, Other Structures, Personal Property, Loss of Use, Liability, MedPay
1. Replacement Cost vs. Actual Cash Value (ACV)
1. Named‑Perils vs. Open‑Perils Coverage
1. Deductibles, Sublimits, and Coverage Limits (and how to set them)
1. Common Exclusions and How to Close the Gaps (Flood, Quake, Wear‑and‑Tear)
1. Endorsements/Riders That Are Worth Considering
1. Pricing 101: What Drives Your Premium (and what you can control)
1. Step‑by‑Step: How to Choose the Right Policy and Insurer
1. Underwriting, Inspections, and Proof of Updates
1. Claims Without Stress: An Action Plan With Templates
1. Disaster Playbooks: Fire, Water, Wind/Hail, Quake, Flood, Wildfire
1. Smart Homes, Sensors, and Discounts (2025 edition)
1. Special Situations: Condo/HOA, Renters, Landlords, Airbnb/Short‑Term Rentals
1. Home Office & Small Business at Home
1. Renovations and New Builds: Insurance Before, During, After
1. Liability Deep Dive: Dogs, Pools, Trees, Trampolines, Guests
1. Money‑Saving Tactics That Don’t Backfire
1. Case Studies: 12 Real‑World Lessons
1. Myths vs. Facts (Debunked)
1. Extended FAQ: 50 Straight Answers
1. Glossary: 60 Plain‑English Terms
1. Renewal Routine & Annual Review Checklist
1. Final Takeaways and 15‑Minute Action Plan

Introduction

Your home is more than a building—it’s where life happens. Home insurance is the financial safety net that helps you recover when a fire, storm, burst pipe, or lawsuit threatens that security. In 2025, climate volatility, construction inflation, and smarter homes have changed how coverage is priced and delivered. This practical guide explains home insurance in plain English, so you can buy confidently, avoid pitfalls, and save money without cutting essential protection.

This guide is organized for quick scanning and deep dives. You’ll find: clear definitions, visual‑style checklists, real‑world case studies, and step‑by‑step playbooks for choosing coverage and filing a claim. Use it as a reference when you shop, renew, or update your policy after renovations.

1) What Is Home Insurance and How It Works

Home insurance is a contract in which you pay a premium and the insurer agrees to pay for covered losses to your home and your legal liability. Policies are standardized by form (often labeled HO‑1 through HO‑8), but each company can add endorsements or exclusions. At a high level, your policy promises to: (1) rebuild/repair your home and detached structures after covered damage, (2) replace your belongings up to policy limits, (3) pay for temporary living costs if your place is uninhabitable, and (4) defend and pay claims if you’re legally responsible for injuries or property damage.

Key building blocks:

Declarations Page (Dec Page): The summary of who/what is insured, limits, deductibles, and address.
Insuring Agreement: What the insurer promises to cover.
Exclusions: What the policy won’t cover.
Conditions: Rules and duties (maintenance, prompt notice of loss, cooperation).
Endorsements/Riders: Add‑ons that modify coverage.

2) Why Home Insurance Matters in 2025

Two trends dominate 2025. First, construction inflation—materials and skilled labor cost more, so underinsuring the dwelling can lead to painful gaps. Second, climate volatility—more frequent wind, hail, wildfire, and flooding. Good policies also include liability coverage, which protects your savings if someone is injured on your property or you accidentally damage a neighbor’s property.

What’s at stake:

Rebuilding costs can exceed market value after a total loss.
Temporary housing can run hundreds per day.
Legal defense for liability claims can cost more than the claim itself.

3) What a Standard Policy Covers (HO‑1 to HO‑8 at a glance)

Policy forms vary by country and insurer, but a common framework includes:

HO‑1 (Basic): Limited named perils; rarely sold today.
HO‑2 (Broad): Broader named perils for dwelling and personal property.
HO‑3 (Special): Open‑perils for the dwelling (except exclusions) and named perils for personal property—very common.
HO‑4 (Renters): Personal property and liability for tenants (no dwelling coverage).
HO‑5 (Comprehensive): Open‑perils for both dwelling and personal property, with higher sublimits.
HO‑6 (Condo): Interior unit, personal property, loss assessments; coordinates with HOA master policy.
HO‑7 (Mobile Home): Tailored for manufactured homes.
HO‑8 (Historic/Older Homes): Specialized valuation methods for unique structures.

4) Dwelling, Other Structures, Personal Property, Loss of Use, Liability, MedPay

Dwelling (Coverage A): The structure itself—roof, walls, floors, built‑in systems. Set this limit to the replacement cost of rebuilding on the same site, not the home’s sale price.

Other Structures (Coverage B): Detached garages, sheds, fences; commonly 10% of Coverage A (adjustable).

Personal Property (Coverage C): Your stuff—furniture, clothing, electronics. Inventory matters. Choose replacement cost if available.

Loss of Use (Coverage D): ‘Additional Living Expenses’ (ALE) like hotel, short‑term rentals, meals, laundry while your home is uninhabitable.

Personal Liability (Coverage E): Pays when you’re legally responsible for injuries or property damage to others; includes legal defense.

Medical Payments to Others (MedPay, Coverage F): No‑fault medical coverage for minor guest injuries—useful for quick goodwill resolutions.

5) Replacement Cost vs. Actual Cash Value (ACV)

Replacement Cost (RC): Pays what it takes to replace with new materials of like kind and quality, without depreciation. Actual Cash Value (ACV): RC minus depreciation. For personal property, RC endorsements are highly recommended; without them, old items get depreciated heavily. For the dwelling, most modern policies use RC; confirm extended or guaranteed RC options to buffer construction inflation.

6) Named‑Perils vs. Open‑Perils Coverage

Named‑Perils: Only the perils listed are covered (e.g., fire, theft, wind). Open‑Perils (All‑risk): Everything is covered except what’s explicitly excluded. HO‑3 commonly uses open‑perils for the dwelling and named‑perils for personal property; HO‑5 often extends open‑perils to personal property as well.

7) Deductibles, Sublimits, and Coverage Limits (and how to set them)

Deductible: Your out‑of‑pocket per claim. Higher deductibles lower premiums but require a stronger emergency fund. Sublimits: Smaller caps within a coverage—for jewelry, cash, firearms, collectibles. Limits: The maximum payout; set dwelling limits to replacement cost and raise personal property limits when needed.

Setting your numbers:

Build a realistic home inventory (photos + receipts).
Price rebuilding with contractors; add 10–20% buffer.
Match deductibles to cash reserves.
Add scheduled coverage for high‑value items.

8) Common Exclusions and How to Close the Gaps (Flood, Quake, Wear‑and‑Tear)

Standard policies exclude flood, earthquake/earth movement, wear‑and‑tear, sewer backup, neglect, and intentional loss. You can close gaps with separate policies or endorsements:

Flood policy (or national flood program equivalents)
Earthquake endorsement or standalone policy
Sewer/backup endorsement
Equipment breakdown coverage
Service line coverage (underground pipes/cables)

9) Endorsements/Riders That Are Worth Considering

Replacement cost on contents (upgrade from ACV)
Extended/Guaranteed Replacement Cost for dwelling
Ordinance/Law (code upgrade costs during rebuild)
Scheduled personal property (jewelry, art, instruments)
Water backup and service line coverage
Identity theft and cyber endorsements
Home business or in‑home office coverage

10) Pricing 101: What Drives Your Premium (and what you can control)

Construction type (masonry vs. frame), roof age/material.
Age of plumbing, electrical, HVAC.
Location risk: wildfire interface, floodplain, wind/hail corridor.
Crime rates and distance to fire station/hydrant.
Claims history for you and your neighborhood.
Deductible level and chosen limits.
Mitigation features: alarms, monitored sensors, sprinklers, fortified roofs.
Ownership status and occupancy (primary, secondary, vacant).
Bundling with auto or umbrella policies.
Payment plan, autopay, paperless discounts.

11) Step‑by‑Step: How to Choose the Right Policy and Insurer

Define your risk profile (perils in your area, rebuild cost, valuables, liability exposures). 2) Decide coverage framework (HO‑3 vs. HO‑5; RC on contents; extended RC on dwelling). 3) Pick deductibles you can afford. 4) Request quotes from at least three sources (direct writer, independent agent, online). 5) Compare sublimits/exclusions, not just price. 6) Check claims reputation and financial strength. 7) Finalize endorsements (ordinance/law, water backup, service line, scheduled items). 8) Bind coverage and store docs safely.

12) Underwriting, Inspections, and Proof of Updates

Insurers may request photos or inspections—especially for older homes or new customers. Proof of roof replacement, upgraded electrical panels, and plumbing updates can reduce price and prevent cancellations. Keep receipts, permits, and contractor invoices.

13) Claims Without Stress: An Action Plan With Templates

If something happens:

Get everyone to safety; call emergency services if needed.
Prevent further damage (shut off water, tarp roof) if safe.
Document: photos/video, serial numbers, receipts.
Report the loss to your insurer; get a claim number.
Meet the adjuster; walk through damages and your inventory.
Keep a claim diary (dates, names, call summaries).
Review estimates; ask questions about line items.
Save all invoices and temporary housing receipts.

Email template to request advance ALE:

Subject: Request for ALE Advance – Claim #[number]

Hello [Adjuster Name],

We’ve been displaced due to [covered peril] on [date]. Please advise on an advance for Additional Living Expenses to secure temporary housing.

Attached: photos, inspection report, and initial receipts. Thank you.

14) Disaster Playbooks: Fire, Water, Wind/Hail, Quake, Flood, Wildfire

Fire: Keep extinguishers; install and maintain smoke/CO detectors; store flammables properly; create a family evacuation plan.

Water (burst pipe/roof leak): Install leak sensors and automatic shut‑off valves; insulate pipes; maintain roof and gutters.

Wind/Hail: Fortify roof decking; use impact‑rated shingles; trim trees; secure outdoor furniture.

Earthquake: Strap water heaters; brace chimneys; consider seismic retrofits; keep emergency kits.

Flood: Know your elevation; install sump pumps with battery backup; elevate utilities; keep sandbags on hand in flood‑prone areas.

Wildfire: Create defensible space; clear gutters; use ember‑resistant vents; choose Class A roofs.

15) Smart Homes, Sensors, and Discounts (2025 edition)

Smart devices can prevent losses and earn discounts: monitored smoke/CO alarms, leak sensors with shut‑off, whole‑home surge protection, security cameras, and professionally monitored systems. Keep proof of installation and monitoring to qualify.

16) Special Situations: Condo/HOA, Renters, Landlords, Airbnb/Short‑Term Rentals

Condo (HO‑6): Coordinate your unit‑owner policy with the HOA master policy; understand where the HOA stops and you begin. Look for ‘loss assessment’ coverage for shared areas.

Renters (HO‑4): Protects your belongings and liability; inexpensive and essential.

Landlords (DP policies): Covers dwelling, landlord liability, and loss of rent after covered damage; tenant’s property isn’t covered.

Short‑Term Rentals: Platform protections are not a substitute for proper endorsements; get specific coverage for transient occupancy.

17) Home Office & Small Business at Home

Most standard policies limit business property and may exclude business liability. If you store inventory, see clients at home, or operate equipment, you may need a home‑business endorsement or a separate business owner’s policy (BOP). Keep clear records and photos of equipment.

18) Renovations and New Builds: Insurance Before, During, After

Notify your insurer before major projects. During construction, consider ‘builder’s risk’ coverage to protect materials and partially completed work. After completion, update limits for increased replacement cost and add endorsements for new systems.

19) Liability Deep Dive: Dogs, Pools, Trees, Trampolines, Guests

Attractive nuisances (pools, trampolines) and certain dog breeds may affect eligibility or pricing. Fences, locked gates, pool alarms, and signage help. Trees: maintain health to reduce fall risk; remove dead limbs. Host responsibly; alcohol‑related incidents can trigger liability claims.

20) Money‑Saving Tactics That Don’t Backfire

Increase your deductible (only if you have an emergency fund).
Bundle home/auto; ask about umbrella policies for extra liability.
Install monitored safety devices (and send proof to your insurer).
Maintain the property—roof, gutters, plumbing, electrical.
Avoid filing small nuisance claims that can raise premiums.
Ask about loyalty, pay‑in‑full, and paperless discounts.
Shop quotes every 12–18 months or after major life changes.

21) Case Studies: 12 Real‑World Lessons

Kitchen Fire, Big Rebuild. A small grease fire escalated. Because the homeowners had replacement cost and ordinance/law coverage, the rebuild included code upgrades without out‑of‑pocket surprises.

Windstorm Roof + ALE. A windstorm tore shingles and caused interior leaks. Loss‑of‑Use paid for a short‑term rental while contractors replaced decking and shingles.

Burst Pipe in Winter. A frozen pipe ruptured on vacation. Leak sensors alerted a neighbor, limiting damage. Water backup endorsement paid for cleanup and drying.

Condo Loss Assessment. A pipe burst in a common wall. The HOA master policy had a big deductible; loss assessment coverage paid the owner’s share.

Theft with Scheduled Jewelry. A burglary targeted a jewelry safe. Because items were scheduled, the payout avoided the standard jewelry sublimit.

Service Line Surprise. An old sewer line collapsed under the driveway. Service line coverage paid excavation, replacement, and surface restoration.

Wildfire Evacuation. A fast‑moving fire triggered evacuation. ALE paid for lodging and pet boarding; defensible space saved the structure.

Short‑Term Rental Liability. A guest slipped by the pool. The homeowner had a short‑term rental endorsement, so liability coverage applied without dispute.

Landlord Loss of Rent. After hail damage to a duplex, one unit was uninhabitable for a month. The policy covered lost rental income.

Historic Home, HO‑8. A 1920s house with original plaster needed specialty materials. The HO‑8 policy’s valuation method matched the restoration approach.

Tree Fall on Neighbor’s Car. A diseased limb fell during a storm. Liability coverage handled the neighbor’s damage; tree maintenance documentation helped the claim.

Earthquake Aftershock. A moderate quake cracked a foundation. The separate earthquake policy covered repairs after the chosen quake deductible.

22) Myths vs. Facts (Debunked)

Myth: “Market value equals what I should insure.”

Fact: False. Insure to replacement cost—what it takes to rebuild on the same lot.

Myth: “All water damage is covered.”

Fact: No. Flood and sewer backup need special coverage; maintenance issues aren’t covered.

Myth: “The HOA master policy covers everything in my condo.”

Fact: It doesn’t. You may be responsible for interior finishes and loss assessments.

Myth: “Riders are a waste of money.”

Fact: The right endorsements (ordinance/law, service line) can save tens of thousands.

Myth: “Loyalty guarantees the best price.”

Fact: Not necessarily. Shop around regularly and ask for new‑customer‑level discounts.

Myth: “Raising a small claim won’t matter.”

Fact: Multiple small claims can raise rates or trigger non‑renewal. Self‑insure small losses when you can.

23) Extended FAQ: 50 Straight Answers

Q: How high should my dwelling limit be?
Set it to the full replacement cost of rebuilding your home on the same site, not market value. Ask for extended or guaranteed replacement cost to buffer inflation.

Q: What’s the difference between replacement cost and ACV on contents?
Replacement cost pays new‑for‑old; ACV subtracts depreciation. Always choose RC on contents if available.

Q: Do I need flood insurance if I’m not in a floodplain?
Yes—25% of flood claims occur outside high‑risk zones. If rainfall overwhelms drainage, you can flood.

Q: Is earthquake coverage worth it in low‑risk areas?
Even mild quake zones see events. If the premium is reasonable and your foundation is at risk, consider it.

Q: How does the deductible work for wind/hail?
Some policies have separate wind/hail deductibles (percentage of Coverage A). Read your Dec Page.

Q: Will my insurer pay for code upgrades during rebuild?
Only if you have an ordinance or law endorsement. Building‑code upgrades are otherwise excluded.

Q: Are home‑based businesses covered?
Standard policies limit business property and exclude business liability. Add a home‑business endorsement or BOP.

Q: Does my dog affect eligibility or price?
Certain breeds or prior bite history can affect eligibility. Fencing, training, and disclosures matter.

Q: What is loss assessment coverage for condos?
It helps pay your share when the HOA assesses owners for covered losses to common areas.

Q: How much liability coverage should I carry?
Many homeowners choose $300k–$500k or more; add an umbrella policy if you have assets or high income.

Q: Are pool accidents covered?
Yes, if the accident arises from covered conditions. Maintain fences, alarms, and safety gear.

Q: Does insurance cover mold?
Limited coverage and only when caused by a covered peril; maintenance mold is excluded.

Q: Are solar panels covered?
Often yes—if permanently installed, they’re part of the dwelling. Confirm with your insurer.

Q: Will smart devices earn discounts?
Monitored alarms, leak sensors, and shut‑off valves can earn discounts and prevent claims.

Q: Does my policy cover tree removal?
Removal is often covered when the tree damages a covered structure; otherwise limits apply.

Q: What if my guest gets hurt?
Liability may apply; MedPay can handle minor injuries regardless of fault.

Q: Are fences and sheds covered?
Yes, typically under ‘other structures.’ Check distance and use limitations.

Q: Does insurance cover a home office?
Limited by default. Add endorsements for equipment and liability, or buy a BOP.

Q: What if my belongings are stolen while traveling?
Your policy can cover theft worldwide, subject to limits. Keep serial numbers and receipts.

Q: How do I prove ownership after a loss?
Photos, videos, and receipts. Keep a cloud backup of your inventory.

Q: What’s ordinance or law coverage?
Pays for required code upgrades during repairs. Essential for older homes.

Q: Does insurance cover foundation cracks?
Settlement depends on cause; earth movement is excluded without quake coverage.

Q: Is identity theft included?
Often available as an endorsement; it won’t restore your credit but covers recovery services.

Q: Are collectibles and art fully covered?
No—sublimits apply unless you schedule items. Appraisals help set limits.

Q: Can I choose my contractor?
Yes—you can choose, but insurers may have preferred networks and pricing agreements.

Q: How long does a claim take?
Simple claims can resolve in days; complex rebuilds can take months. Documentation speeds everything up.

Q: What if I disagree with the adjuster?
Provide competing estimates, photos, and building code citations. Request supervisor review or use the appraisal clause if available.

Q: Do claims always raise my premium?
Not always. Market‑wide factors can raise premiums. Shopping at renewal helps.

Q: Should I file a small claim?
If repairs are near your deductible and no injuries, paying cash can preserve discounts. For large losses, file.

Q: Does insurance cover power surge damage?
Lightning surges are often covered; utility surges may require an endorsement.

Q: What is service line coverage?
It pays to repair underground pipes and cables from the street to your house.

Q: Does ALE cover pet boarding?
Often yes, within ALE; confirm limits and reasonableness requirements.

Q: What if my home is unoccupied for months?
Vacancy/unoccupancy clauses may limit or exclude coverage after 30–60 days. Use a vacancy permit or special policy.

Q: Are trampolines excluded?
Some insurers restrict or surcharge trampolines. Safety nets and anchors can help eligibility.

Q: Do I need an umbrella policy?
Umbrella adds $1M+ of extra liability above home/auto. Smart if you have assets or higher risk exposure.

Q: How often should I shop my policy?
Every 12–18 months, or after updates/renovations and life changes.

Q: What happens if I miss a payment?
You may get a grace period; pay ASAP to avoid a lapse. A lapse can spike premiums or cause denial of claims.

Q: Will my rate drop when an old claim ages off?
Many rating factors look back 3–5 years. Ask your agent to re‑quote when old claims fall off.

Q: Can I exclude a risky driver in my household?
Some insurers allow excluded drivers; understand they’ll have no coverage when driving the insured car.

Q: Does insurance cover termite damage?
No—termites and pests are maintenance issues. Prevention contracts help.

Q: How do sublimits work for jewelry?
Standard sublimits are low (e.g., $1k–$2.5k for jewelry). Schedule items to raise limits and remove deductibles.

Q: Does my policy cover my ebike or scooter?
Personal property coverage can extend to ebikes/scooters; liability for riding incidents may be separate.

Q: Are detached studios covered as ‘other structures’?
Yes—studios, sheds, and fences typically fall under Other Structures; business use changes things.

Q: Does renters insurance cover roommates?
Roommates usually need their own policies unless named insureds.

Q: Is short‑term rental activity covered?
Usually excluded unless you add endorsements. Platform ‘host guarantees’ are not insurance.

Q: Does insurance cover septic or well problems?
Limited; many septic/well failures are excluded maintenance issues—endorsements may exist in some markets.

Q: Can I get new‑for‑old on contents?
Yes—choose replacement cost on contents to avoid depreciation.

Q: Are landscaping and trees covered?
Yes, up to limits—landscaping is often limited per item and in total.

Q: What if contractors uncover hidden damage?
If it stems from the covered peril, supplemental payments are typical; keep documentation.

Q: How do I prepare for renewal to save money?
Start 45 days before renewal: update inventory, request quotes, recalibrate deductibles and limits, and ask about new discounts.

24) Glossary: 60 Plain‑English Terms

Actual Cash Value (ACV): Replacement cost minus depreciation—what an item is worth today.
Additional Living Expenses (ALE): Temporary housing, meals, and costs when your home is uninhabitable.
Adjuster: Insurance professional who evaluates your claim and recommends payment.
Appraisal Clause: Process to resolve disputes about the amount of loss.
Binder: Temporary proof of coverage until the full policy is issued.
Declarations Page: Summary of coverages, limits, deductibles, and insured property.
Deductible: Amount you pay out of pocket per claim.
Depreciation: Loss of value due to age, wear, or obsolescence.
Endorsement (Rider): Add‑on that changes or extends coverage.
Exclusion: A peril or property type not covered by the policy.
Extended Replacement Cost: Adds a percentage above the dwelling limit to handle inflation.
Flood: Overflow of inland/tidal waters or surface runoff; excluded unless separately insured.
Hazard: Condition that increases the chance of loss.
HO‑3: Special form—open perils on dwelling, named perils on contents.
HO‑5: Comprehensive form—open perils on dwelling and contents.
HO‑6: Condo owner’s policy.
HO‑4: Renters policy for personal property and liability.
HO‑8: Older/historic home policy with unique valuation.
Indemnity: Restoring you to financial position you had before the loss.
Liability Coverage: Pays for injuries/property damage to others and legal defense.
Loss of Use: Another term for ALE—expenses when you can’t live at home.
Loss Assessment: Condo/HOA owners’ share of a covered loss in common areas.
MedPay: Medical payments to others regardless of fault.
Mortgagee: Your lender, listed as having an insurable interest.
Ordinance or Law: Coverage for code upgrades required during rebuild.
Peril: Cause of loss, like fire, theft, or wind.
Personal Property: Movable belongings in your home.
Policy Period: The time your policy is in force.
Premium: Price you pay for the policy.
Proof of Loss: Formal statement to support a claim amount.
Replacement Cost (RC): Pays to replace with new materials of like kind and quality.
Retention (Self‑Insured): What you choose to pay yourself before insurance applies.
Scheduled Property: Specifically listed items with set values and broader coverage.
Service Line Coverage: Pays to repair underground pipes/cables to your home.
Sewer Backup: Water backing up through sewers/drains—needs endorsement.
Subrogation: Insurer’s right to recover from a responsible third party.
Underwriting: The insurer’s risk assessment and pricing process.
Umbrella Policy: Extra liability coverage above home/auto limits.
Vacancy: Prolonged unoccupancy that may reduce coverage.
Wear and Tear: Maintenance issues not covered by insurance.
Aggregate Limit: Maximum the insurer will pay in a policy period for certain coverages.
All‑Risk (Open‑Perils): Covers any cause not excluded.
Assignment of Benefits (AOB): You assign claim rights to a contractor—use with caution.
Catastrophe (CAT): Large event causing widespread losses.
Claim: Request for payment under the policy.
Coinsurance (Property): A clause requiring adequate insurance to avoid penalties.
Dehumidification: Drying process after water damage—keep receipts and moisture logs.
Dwelling Limit (Coverage A): Maximum for your home’s structure.
Exposure: Degree of risk to loss.
First‑Party Claim: You vs. your insurer; third‑party is someone else vs. you.
Indemnification: Compensation for a loss or damage.
Insurable Interest: You must stand to suffer loss to insure the property.
Mitigation: Actions to prevent further damage after a loss.
Named Perils: Specific listed causes of loss.
Non‑Renewal: Insurer decides not to renew when the policy ends.
Open Perils: All causes of loss except those excluded.
Public Adjuster: Licensed professional who helps you document and negotiate claims.
Replacement Cost on Contents: Endorsement that pays new‑for‑old for personal property.
Salvage: Residual value of damaged property.
Soft Costs: Extra expenses (permits, design) in construction projects.
Total Loss: When repair cost exceeds a threshold of value/coverage.
Under‑Insurance: Insuring below replacement cost—can trigger penalties.