There are a few things you need to understand when you are looking over your house insurance. Some of them are industry terms, some of them are policy specifics, but all of them could be the difference between disaster and redemption.

1. Replacement cost. House insurance can be for the current value of the home, or for the actual cost of replacement. There are pros and cons to both, but if you want to be able to rebuild your home - as is - in case of a complete loss then you need to look at replacement insurance.

2. Property insurance. Most house insurance covers some percentage of the property in the home, but will often exclude valuable items like art work, jewelry, or furs. It could be important to look at adding a rider to your house insurance or getting a separate policy for valuables.

3. Deductible. While a high deductible could bring down the premium costs, it may not be as valuable as it looks. A high deductible means you will be out of pocket for expenses before the insurance kicks in.

4. Coverage specifics. All policies exclude certain events, but the policy isn't worth the paper it is printed on if you don't know what events you are covered for. Flood (where the water comes up - from a river or lake or other body of water) is NOT covered by most house insurance policies. Wind can also be excluded. Read the fine print. Talk the policy over with your agent. Be sure that you are covered as completely as possible.

Knowing the language can make getting the right house insurance a breeze. It can also make filing a claim a less painful endeavor if the need arises. Take some time to learn about what you are buying before you buy. If you already have insurance, it's never too late to learn.

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