A
Actual
Cash Value
- The
present value of property. It will be less than replacement
cost because depreciation is taken into consideration.
Additional
Living Expenses
- Any
increase in living expenses that you incur trying to keep
up the normal standard of living for you and members of
your household when a loss to your home forces you to
live elsewhere.
B
Bodily
Injury
- Bodily
harm, sickness or disease, any care these require, and
any loss of services or death that results.
Business
- A
trade, profession or occupation, including farming, whether
it is full or part-time.
C
Co-Insurance
Rule
E
Eighty
Percent Rule (also called the Co-Insurance Rule):
- You
must be insured for at least 80% of the full replacement
cost of your house at the time it is damaged or destroyed,
if you want to collect the full replacement cost.
F
Fire
Insurance
- Coverage
protecting property against losses caused by fire or lightning.
First-Aid
Expenses
- Expenses
incurred by you for first aid given to another person
at the time of an accident.
I
Improvements
and Betterments
- Permanent
changes you make at your own expense to your rented home.
Insured
- You,
your relatives and those under 21 in your care. Can also
include household employees who live with you.
Insured
Premises
- The
place where you live, any surrounding land you own, and
any structures on your property.
L
Liability
- Your
legal responsibility to pay for injury to someone else
or damage to their property.
Limit
of Liability
- The
most the company will pay you for a particular loss.
Loss
Deductible Clause
- The
clause that requires you to pay part of your loss before
the company will pay the rest.
M
Medical
Expenses
- Necessary
expenses for medical, surgical, x-ray, dental, ambulance,
hospital, professional nursing services and prosthetic
devices incurred as the result of an accident covered
by your policy.
Mortgage
Insurance
- Life
insurance that pays the balance of a mortgage if the mortgagor
(insured) dies.
Motor
Vehicle
- A
self-propelled land or amphibious vehicle.
O
Occurrence
- A
single accident or a series of continuous or repeated
events that cause bodily injury or property damage.
Outbuilding
- Permanently
installed structures located on your insured property
that are not physically attached to your home (often called
related private structures on premises).
P
Peril
- A
cause of damage or destruction.
Personal
Property
- All
property you own other than real property.
Property
Damage
- Injury
to or destruction of tangible property including the loss
of use of property.
Property
Damage Liability
- Insurance
Coverage in the event that the negligent acts or omissions
of an insured result in damage or destruction to another’s
property.
R
Real
Property
- Land,
and anything that is growing on it, built on it, or attached
to it.
Rental
Value
- Rent
you lose from a tenant because a loss has made rental
property you own unfit to live in.
Replacement
Cost
- The
cost of restoring damaged property to the exact condition
it was in or replacing it with something of like kind
and quality.
Residence
Employee
- Someone
who works for you in your home performing maintenance
and household chores not connected with your business
(also known as temporary household help).
Residence
Premises
- The
house or individual unit where you live.
Rider
- An
endorsement to an insurance policy that modifies clauses
and provisions of the policy, adding or excluding coverage.
W
Water
Damage
- Loss
caused by flood, waves, overflow, backed-up sewers and
drains, underground water and seepage or leaks into buildings,
sidewalks or other structures.
A
C F I M P R
W
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