Like any other industry, the insurance industry employs industry specific jargon that can sound quite foreign to the layman. To experienced homeowners these terms seem normal but to a beginner who’s trying to make sense of both owning property and the paperwork that comes with it, the terms can be quite a bit to handle. Picture this, you’re walking around and looking for the best homeowners insurance quotes in North Dakota and you get the quotation only to find you don’t understand a single thing in it. Well, we’re here to help.

In order to demystify insurance jargon and help you better understand your policy, below are some of the words that may seem commonplace to an insurance agent but sound like a completely alien language to you. Read on.

What do these terms really mean?

Covered Property

What does this mean, this means to the parts of your property (land, the structure, personal belongings etc.) that will be covered by the insurance company. Covered property is usually divided into 4 categories.

  • Dwelling refers to the structure of the house or property.
  • Other Structure refers to structures that are separate from the house but connected in some way by a fence or passageway but is not otherwise attached to the dwelling. (i.e. tool shed, pool house)
  • Personal Property refers to the personal belongings within your dwelling and other structures in your property. This may include but are not limited to jewelry, art work, furniture and appliance. Not all these personal properties will be covered by insurance.
  • Loss of Use refers to when the insured are unable to inhabit their dwelling because of causes that are covered in the homeowners insurance. In case this happens, the insurance company will usually cover the additional living expenses.


Perils refer to the cause of the loss in insured property. A peril may refer to fire, theft and natural calamity depending on what caused damage to the property.

  • Named Peril is when insurance policies identify certain perils that can ONLY be covered by the policy.
  • Open Peril is when, instead of listing the perils included, a policy list the perils that are EXCLUDED. This type of policy will typically have a wider coverage.

There you have it, the most basic terms used in homeowners insurance quotes and what they mean. So now, while you’re looking for the best homeowners insurance quotes in North Dakota, you won’t feel so lost while reading the proposals.


Tip for beginners: Looking for the best coverage for the best price can be quite daunting. There are just so many options out there. In order to get the best deals from, approach an insurance broker and ask them to give you the best homeowners insurance quotes in North Dakota or in any location you might be in. Brokers can represent several companies giving you the advantage of being able to choose the best plan that suits you.