Vocabulary: Chapter 8- Concepts of Home Ownership Flashcards Preview

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Flashcards in Vocabulary: Chapter 8- Concepts of Home Ownership Deck (5)
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1

Coinsurance Clause

A clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage generally equal to at least 80 percent of the property's actual replacement cost

2

Homeowners' insurance policy

A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public, liability, and other common risks

3

Liability coverage

Insurance that covers injuries or losses sustained within the home

4

PITI (principal, interest, taxes, and insurance)

The basic costs of owning a home-mortgage principal and interest, real estate taxes, and hazard insurance

5

Replacement Costs

The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original