Homeowner’s insurance is a necessity. It protects your most vital asset — your new Cypress Green home. Most mortgage companies won’t even consider giving you a loan without proof of coverage. If you are a first-time homebuyer, the language of home insurance can sometimes be complex, but understanding key terms and concepts is crucial. Here are some common terms you should know:


The complete written contract of insurance that outlines the terms, conditions and coverage provided by the insurance company.


The amount you pay for your insurance coverage, typically on a monthly or annual basis.


The amount you’re responsible for paying out-of-pocket before your insurance coverage kicks in. A higher deductible often results in lower premiums.


The protection and benefits outlined in the insurance policy. Home insurance commonly includes coverage for dwelling, other structures, personal property, liability and additional living expenses.

Dwelling Coverage

Protection for the structure of your home, including the walls, roof, floors and built-in appliances.

Other Structures Coverage

Covers structures on your property that are not attached to your home, such as a detached garage or shed.

Personal Property Coverage

Protects your belongings, such as furniture, clothing and electronics, in case of covered perils like theft, fire or vandalism.

Liability Coverage

Protects you against financial loss if you are found responsible for injuring someone or damaging their property, and they file a lawsuit against you.


A decrease in the value of property over a period resulting from use, obsolescence or wear and tear.

Actual Cash Value

The amount you will be given to offset the cost of repairing or replacing damaged property taking into account depreciation.


Specific risks or causes of loss covered by an insurance policy. Common perils include fire, theft, vandalism and certain natural disasters.

Additional Living Expenses (ALE) Coverage

Pays for extra costs incurred if you are temporarily unable to live in your home due to a covered event. This can include hotel bills, restaurant meals and other living expenses.


Events or circumstances that are not covered by the insurance policy. It’s important to be aware of exclusions to understand the limitations of your coverage.


An addition or modification to the standard insurance policy to provide extra coverage or protection for specific items or events.


A formal request made by the policyholder to the insurance company to cover a loss or damages.