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Your home insurance policy- translated.

Like most homeowners, your home is your greatest asset. That's why having a strong understanding of your homeowners insurance policy is so important. However, since home insurance policies are written by home insurance companies- customers often have a difficult time translating their policy. Use our home insurance glossary to search out terms commonly found in homeowners insurance policies and get clear, concise definitions written in language you can understand!

Earned Premium

The portion of a policy premium that has been used to actually buy coverage, or that the insurance company has "earned." For instance, if you have a six-month policy that you paid for in advance, two months into the policy, there would be two months of earned premium. The remaining four months of premium is called unearned premium.

The amount paid by an insured to an insurance company to obtain or maintain an insurance policy.

Premium Expense Charges

An amount deducted from each premium payment, which reduces the amount credited to the policy.

Return Premium

The premium returned to an insured for canceling or amending a policy.

Unearned Premium

The insured´s remaining premium equity in his policy; that part of the policy premium that has not been "used up."

DISCLAIMER: The information provided above is intended to be a guide to understanding common homeowners insurance terms. HomeInsurance.com does not intend this information to be official or legally binding. HomeInsurance.com uses this list as a basic guide to understanding these terms and should not be considered complete or definitive.