While just about everyone understands the importance of getting insurance to protect their home, the specific parts of that policy can sometimes be confusing. With that in mind, here is a closer look at some important terms everyone should know.


The premium and deductible are extremely important, since they reflect money you will pay out of pocket. The premium is your insurance bill that you need to pay to maintain coverage. Depending on the policy provider’s options, you may pay monthly, semi-annually, or annually. The deductible refers to how much money you would pay out of pocket after filing a claim before coverage kicks in. The lower your deductible, the higher your premium, and vice versa.


Your insurance policy won’t cover everything. Policy limits set a maximum level of coverage for your claims. You must be sure that your policy limit would fully cover rebuilding your home if you were to lose everything in a fire or other disaster. You should also be mindful of exclusions — types of damage your provider does not cover, such as floods, earthquakes, and maintenance issues.


Riders can increase your standard policy’s level of coverage or total features. For example, you could purchase additional coverage for valuable jewelry that you own. Of course, the added protection will increase your total insurance costs.

If you have questions about these or other policy items, don’t hesitate to reach out to your agent. At Pike Mutual, our partner agents and agencies are dedicated to helping you understand your policy so you can get the right coverage for your needs.