Insurance terms, in plain English.

The broadest standard homeowners policy form. It covers both the structure and your personal property on an open-perils basis, meaning anything is covered unless the policy specifically excludes it. Stand writes HO-5.

HO-5 vs HO-3 vs FAIR Plan →

The most common homeowners form. The structure is covered on an open-perils basis, but personal property is covered only for the specific perils the policy names. That difference is where most surprise claim denials come from.

Compare the forms →

A state-created insurer of last resort for homeowners who cannot find coverage in the standard market. FAIR Plan policies are typically far narrower than a standard homeowners policy and are usually paired with a separate wraparound policy for the coverage they leave out.

What the FAIR Plan leaves out →

Coverage written outside the admitted market, used for risks the standard market declines. E&S carriers can price and structure a policy to the specific risk rather than to a filed rate, which is what makes hard-to-place homes writable at all.

The dwelling limit — the amount available to rebuild the structure itself. It is the figure most other limits on the policy are calculated from, so an inaccurate Coverage A quietly distorts the whole policy.

Settlement based on what it costs to rebuild or replace at today’s prices, with no deduction for age or wear.

Settlement based on replacement cost minus depreciation. On an older roof the gap between this and replacement cost can be most of the claim.

Coverage for the additional cost of living elsewhere while your home is uninhabitable — housing, and the everyday expenses above what you normally spend.

The amount you pay before coverage responds. Wind, hurricane, and wildfire deductibles are often a percentage of Coverage A rather than a flat dollar figure, which makes them much larger than people expect.

The sum of all limits on a policy — dwelling, other structures, contents, and loss of use. Underwriters use it to size a single risk and to manage how much exposure sits in one area.

The managed area around a structure where vegetation and combustible material are reduced so a fire arriving at the property has less to burn. Usually regulated in zones measured outward from the structure.

The home hardening guide →

Changes to the structure itself — roof, vents, eaves, windows, decking — that make it less likely to ignite from embers or radiant heat. Distinct from defensible space, which is about the surroundings rather than the building.

What actually moves the needle →

Ignition caused by wind-carried embers entering a structure through vents, gaps, or accumulated debris. It is the mechanism behind most homes lost in a wildfire — far more than direct contact with a flame front.

Hardening against embers →

A construction and re-roofing standard developed to keep buildings intact in high winds, with defined levels covering the roof, openings, and structural connections. Verified by a designated evaluator and documented per building.

Construction features that reduce wind and water damage — roof shape, roof-to-wall connections, opening protection, and secondary water resistance. In coastal states these features are inspected and can materially change premium.

Coverage in Florida →

Water pushed inland by a storm’s winds and pressure, above the normal tide. It is generally excluded from a homeowners policy and covered separately, which is a common and expensive surprise after a hurricane.

An insurer declining to continue a policy at the end of its term. Different from cancellation mid-term, and usually subject to advance-notice requirements set by state law.

The summary page of a policy listing the insured property, the coverages and their limits, deductibles, and the term. The fastest way to see what a policy actually does.

An amendment to a policy that adds, removes, or changes coverage mid-term. Also how limits get corrected when a home’s details change.

An admitted carrier’s rates and forms are filed with and approved by the state, and its policies are backed by the state guaranty fund. A non-admitted carrier has more freedom to price and structure coverage but is not backed by that fund.