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A
Accident: An unplanned, unexpected event which occurs suddenly and at a definite place.
Actual Cash Value: An amount equivalent to the replacement cost of lost or damaged property at the time of loss, less depreciation. With regard to homes or buildings, the actual cash value usually will closely parallel the market value of the property.
Additional Insured: A person other than the named insured who is protected under the terms of the contract. Additional Insureds are usually added by endorsement.
Additional Living Expense: Coverage the reimburses the insured for increased living costs when loss of property forces the insured to maintain temporary residence elsewhere. Examples of these expenses are the cost for a hotel or motel, the extra cost for restaurant meals, laundry servcies, etc.
B
Bodily Injury Limit: A legal liability that may arise as a result of the injury or death of another person.
Business Interruption Insurance: A time element coverage that pays for loss of earnings when operations are suspended or curtailed because of property loss due to a covered peril. This is also called Business Income Insurance.
C
Collision Coverage: A form of automobile insurance that covers loss to the insured's own vehicle caused by its collision with another vehicle or object or its upset
Combined Single Limit: A single limit of protection for both bodily injury and/or property damage, contrasted with split limits, where specific limits apply to bodily injury and property damage separately.
Comprehensive Coverage: Physical damage coverage for losses by fire,theft, vandalism, falling objects and vaious other perils. May also be called "other than collision" coverage.
D
Deductible: The portion of an insured loss to be paid by the insured before any recovery may be made from the insurer.
E
Endorsement: A written or printed form attached to the policy which alters provisions of the contract.
Exclusion: A contractual provision that denies coverage for certain perils, persons, property, or locations.
H
Hired:
Homeowners Policy: A property and liability insurance contract that provides insurance against any of the property and liability perils to which a homeowner or renter is exposed.
I
Insurance: Reduces risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a premiu, to assume, to a specified extent, the losses suffered by the insured.
L
Lapse: Termination of a policy because of a failure to pay the premium.
M
Market Value: The price for which something would sell for under current market conditions.
N
No-fault Insurance: A law in NY and various other states that permit the individual automobile accident victim to collect directly from his or her own insurance company for medical and hospital expenses regardless of who was at fault in the accident.
Non-owned auto: Any autos not owned, leased, hired or borrowed which are used in connection with the business.
O
Occurence: An event that results in an insured loss.
Other Structures: Structures, such as garages or storage shed, which are separated from the insured dwelling by a clear space. This is included under homeowner and dwelling policies.
P
Personal Injury: Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person's right to privacy.
Personal Injury Protection (PIP): The formal name given to no-fault benefits in states such as NY that have mandatory no-fault coverages. PIP usually includes benefits for medical expenses, loss of work, accidental death and funeral expenses.
Physical Damage: A term indicating damage from such perils as collision, comprehensive, fire and theft or any damage to the vehicle itself.
R
Reinstatement: Restoration of a lapsed policy.
Replacement Cost: The cost of replacing property without a reduction for depreciation. By this method of determining value, damages for a claim would be the amount needed to replace the property using new materials.
S
Stated Amount: An agreed amount of insurance which is shown on the policy, and which will be paid in the event of total loss regardless of the actual value of the property.
T
Total Loss: A loss of sufficient size so that it can be said there is nothing left of value. The complete destruction of the property.
U
Umbrella Liability Policy: A coverage affording high limit coverage in excess of limits of the primary policies as well as additional liability coverages. The term umbrella is derived from the fact that it is a separate policy over and above any other basic liability policies the insured may have.
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