Understanding Home Insurance Terminology

Home insurance is a complex subject, and the terminologies used can confuse anyone. So our team at Martin Insurance Team made a glossary for our neighbors in Evergreen Park, IL!


Deductibles are the amount you pay out of pocket when filing a claim. Homeowners’ insurance typically includes a deductible. The deductible amount is set when you purchase your policy. If you have a higher deductible, you can lower your premium costs for your policy. When purchasing a deductible, you must consider the amount you can afford to pay out of pocket.


Endorsements are upgrades or add-ons to your homeowner’s insurance policy. You can customize your home insurance coverage by adding endorsements to your policy. Endorsements offer coverage beyond what standard home insurance policies provide.


Exclusions are specific events or circumstances your home insurance policy does not cover. Typical policy exclusions include flood damage, earthquake damage, and damage caused by neglect or normal wear and tear.

Policy Limits:

The policy limit refers to the maximum amount the insurance company will pay in case of a covered loss. Standard home insurance policies have limits on coverage for specific perils.


The premium is the amount you pay for home insurance coverage, typically annual, semi-annually, or monthly. Your premiums are determined by the coverage and level of protection you desire. Various factors, such as geographic region, construction materials, credit score, and house age, influence the premium amount. It is essential to keep your premiums affordable without compromising the coverage that you need.

Did we miss a term you want to define? If you live in the Evergreen Park, IL, area and have questions about your home insurance, contact the Martin Insurance Team.