Actual
Cash Value
An
amount equivalent to the replacement cost of lost
or damaged property at the time of the loss, less
depreciation. With regard to buildings, there is a
tendency for the actual cash value to closely parallel
the market value of the property.
Additional
Living Expense
A
contract to reimburse the insured for increased living
costs when loss of property forces the insured to
maintain temporary residence elsewhere. Examples of
these types of expenses are the cost for a hotel or
motel, the extra cost for restaurant meals, and the
cost of using a Laundromat.
Loss
of Use
Coverage
to compensate an insured for the loss of use property
if it cannot be used because of a peril covered by
the policy.
Comprehensive
Personal Liability
This
coverage protects individuals and families from liability
for all types of accidents caused by them in their
personal lives as opposed to business lives. It is
most commonly a part of the protection provided by
a Homeowners policy.
Medical
Payments (MED or MED PAY)
An
optional coverage that provides for the payment of
medical and similar expenses without regard for Liability.
Other
Structures
Structures,
such as garage or storage shed, which are separated
from an insured dwelling by a clear space, or are
connected only by a fence or utility line. Dwelling
and Homeowner policies provide coverage for other
structures.
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 committed other than in the course
of advertising, publishing, broadcasting or telecasting.
Residence
Premises
In
homeowners insurance, the dwelling, other structures
and grounds, or that part of any other building where
the named insured lives.
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.
Special
Coverage Form
Any
of the commercial or personal lines property forms
which provide coverage on an open perils (all risk)
type basis. These forms provide the broadest coverage
and do not list covered perils, but do include a lengthy
list of exclusions.
Basic
Coverage Form
Any
or the commercial lines property forms which provide
basic coverages. These forms generally provide the
most limited coverage, which is surpassed by broad
forms and special forms.
Broad
Form
A
term usually used to designate policies that provide
insurance for multiple types of perils over and above
the usual basic perils, or additional coverages beyond
standard coverages.
Peril(s)
The
cause of a possible loss.
Personal
Property Floater
A
Broad Form policy covering all personal property worldwide,
including at the insureds home. Similar coverage is
available by endorsement as part of the “Special”
Homeowners policy form.
Schedule
A
list of the items covered by an insurance policy with
their descriptions and valuations.
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