Home Owner Vocabulary

A type of home owner's insurance policy that covers your home and personal property against all perils except those specifically listed as exclutions and it provides the MOST coverage because it will use the replacement value (the cost to replace it).

• Comprehensive

• Basic

• Broad Form

• Modified form

Suppose you have a Playstation 4 worth $50.00 that you had placed on your inventory for your home owner's insurance. Unfortunately, your home was buglarized and the PS4 was stolen. If the insurance pays to replace the console with a PS5 rather than pay you the $50.00, this is called

• actual cash value

• replacement value

• deductible

• Peril

A type of inurance coverage that pays the extra cost to rebuld your home to meet new or updated building codes (Mrs. Miller recommends you get this).

• Basic

• Umbrella Liability

• Exclusion

• Ordinance or Law

Select ALL of the following that are perils

• Wind

• Fire

• a hole in the wall that you made yourself

• Theft

Another name for a variable-rate loan in which the interest rate changes over time. Mrs. Miller recommends that you DO NOT get this, even if they tease you with a very low rate.

• Fixed Rate Mortgage

• Adjustable Rate Mortgage (ARM)

• Market Value

• Mortgage Insurance

Suppose your home is worth $300,000 and you owe $200,000 on your home. This means you have $100,000 of ______.

• Insurance

• Lien

• Escrow

• Equity

When you plan to purchase a home, you need to have a ________ to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.

• debt to income ratio

• home inspection

• mortgage insurance

• earnest money

The final steps in the transfer of property ownership where documents are signed and money is exchanged is called the:

• assessed value

• closing

• counter offer

• down payment

Funds held by a third party (not you or your lender) that are used to pay taxes and insurance for the homeowner.

• Principal

• Lien

• Earnest money

• Escrow

A claim or charge on property for payment of a debt. For example if you do not pay your power bill, the power company can put a _____ on your property and you cannot sell it until it is paid.

• Lien

• Market Value

• Title

• Easement