| A | B |
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| Term | Definition |
| Accident | A sudden, unplanned and unexpected event; neither intended nor expected |
| Age Of Structures | Factor that affects cost of premium; older houses are more expensive than newer houses |
| Amount Of Coverage | Factor that affects cost of premium; more coverage means higher premium |
| Business Income Coverage | Covers consequential loss of business inform that occurs when a business must suspend operations because of a direct loss. Time element form. 72-hour waiting period. |
| Cancellation | The termination of an insurance policy before its expiration date. Either the insured or the insurer may cancel the policy. (At any time) |
| Claim Frequency | Factor that affects cost of premium; more claims means higher premium |
| Coinsurance | Typically 80%; Policy condition that requires the insured to pay part of a loss if the amount of insurance carried on property is less than specified percentage of the value of the property at the time of loss |
| Commercial Building & Property Insurance | Covers buildings, business personal property , property of other's on the insured's premises |
| Consequential / Indirect Loss | Loss that occurs due to a direct loss (water putting a fire out) |
| Direct Loss | The property loss in which the insured peril is the proximate cause of damage or destruction. Actual physical damage or loss of property. |
| Duties In The Event Of Loss | This condition states that after a loss the insured must: Notify the insurer as soon as possible; notify the police if law broken; take reasonable steps to protect the property from further damage and keep record of expenses incurred to protect the property; provide inventory; Allow insurer to inspect property; testify under oath with regard to the claim; send a signed, sworn statement of loss within 60 days of the insurance company's request |
| Dwelling Coverage | Includes basic covered perils plus: Burglary Damage, Falling Objects, Weight of Ice/Snow/Sleet, Tearing apart/crackling/burning/bulging, Accidental discharge/overflow of water/steam, Freezing of Plumbing and Electrical. |
| Eviction | A landlord's legal removal of a tenant from his rental property. May occur when rent has not been paid, when the terms of the rental agreement have been breached, etc… |
| Factors Affecting Premium | Factors that affect premium amount: Type of construction, age of structure, local fire protection, amount of coverage, claims frequency, size and makeup of household, neighborhood, smoke alarms/fire extinguishers, home security systems, etc… |
| Fixture | Any personal property affixed to real property in such a way as to become part of the real property. |
| Home Security System | Factor that affects cost of premium; burglar alarm decreases losses from theft |
| Homeowner's 1 (HO-1) | Basic policy, protects home against 11 perils (in question 10), and provides Ripstick liability |
| Homeowner's 2 (HO-2) | Protects against 17 perils, 11 basic perils and roof collapse caused by weather weight, collapse of home, damage from water pipes, falling objects, electrical surges |
| Homeowner's 3 (HO-3) | Most common, protects against all perils, unless specifically excluded (flood, wars, and earthquakes often excluded), replacement cost (may be replacement value or actual cash value) |
| Homeowner's 4 (Ho-4) (Renter's) | HO-2 coverage + liability for other's in your shared dwelling |
| Homeowner's 5 (HO-5) | Most complete, most rare, covers all hazards except flood, earthquake, war, & nuclear attack |
| Homeowner's 6 (HO-6) | Modified HO-2 policy to protect owners of condominiums |
| Homeowner's 7 (HO-7) | Protection for mobile homes, loss of personal property, the home, and structures on property |
| Homeowner's 8 (HO-8) | Coverage for old or historic homes, suited for depreciated homes, provides functional replacement, |
| Homeowner's Insurance | A form of property insurance designed to protect an individual's dwelling place against damages to the dwelling itself, or to possessions in the home; also provides liability coverage against accidents in the home or on the property. |
| Improvements And Betterments | Alterations or additions made to the building at the expense of an insured who does not own the building (tenant) and who cannot legally remove them. At the expiration of a lease they either must be removed from the premises, or they become property of the owner. |
| Inventory | A list of all personal belongings including their value and serial number. |
| Joint Owners/Tenants | Two or more persons each having a full interest in the property. Each tenant has an insurable interest to the full extent of the property value. |
| Landlord | A person who leases or lets a property to another. |
| Lease | A rental agreement, often requiring that the tenant has renter's insurance |
| Lessee | See Tenant; Someone who pays to use, possess, or occupy property belonging to another. |
| Lessor | See landlord; A person who leases or lets a property to another. |
| Liability Insurance | Covers personal property against perils such as fire, theft, and vandalism |
| Limit Of Liability | The maximum amount of damage you have to pay in the event of a loss |
| Local Fire Protection | Factor that affects cost of premium; the closer you are to a fire station, the lower your premium |
| Market Value | The amount property could be sold for at the time of loss. May be used to determine the amount of reimbursement for a loss. |
| Negligence | Failure to act within the legally required degree of care for others, resulting in harm to them |
| Neighborhood | Factor that affects cost of premium; neighborhoods with higher claim rates have higher premiums |
| Occurrence | Losses caused by continuous pr repeated exposure to conditions resulting in injury; neither intended nor expected |
| Personal Liability | Protects policyholders from claims or judgements made against them for the following: damage to the claimant's property ("Fido dug up my rosebushes!"), physical damage to a claimant ("Your son ran me over with his Ripstick!"), |
| Personal Property | All tangible or intangible property that is not real property. |
| Premium | Recurring payment that covers the cost of insurance; paid by the policyholder to the insurer |
| Proof Of Loss | Official inventory of the damages |
| Property Insurance | Insurance that protects against the risk of damage and destruction to all types of property. |
| Protective Devices | Items that provide a discount in renter's insurance, include smoke and fire detectors, fire extinguishers, and burglar alarms |
| Real Property | Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land. |
| Rental Agreement | A contract (oral or written) between a landlord and tenant that provides for a tenancy for a period of time; it automatically renews at the end of this period, unless the landlord or tenant give the proper amount of notice (which usually must be written) to terminate the contract. |
| Renter's Insurance | Covers loss of a tenant's personal property as a result of damage or theft |
| Replacement Cost | The cost to fix a damaged or destroyed item of property |
| Responsibilities Of Landlord | Keeping the property habitable (fit to live in); perform maintenance work; make necessary repairs; Provide notifications in writing when the property is being transferred to a new owner; Refrain from turning off utilities in an effort to get unpaid rent; Ensure the premises remain safe and deal with other tenants who are causing a problem or violating the terms and conditions of their lease. Not responsible for repairing damage caused by the tenant, or the tenant's guests, children or pets. |
| Responsibilities Of Tenant | Must pay rent in full and on time every month as agreed; take reasonable care of the rented property and common areas, such as hallways; repair all damage that he or she causes, or that is caused by the tenants' guests, children or pets; keep the property clean and sanitary; Not taking on additional tenants or subletting without the express consent of the landlord; Not creating a disturbance or safety hazard for other residents living in the building. |
| Rights Of Landlord | To receive rents as agreed; To inspect the property during specific hours and under certain circumstances; To increase the rent within a legally prescribed period of time; To have the property kept free from damage, subletting, excessive noise, disruption to other tenants, etc. |
| Rights Of Tenant | Exclude the landlord from entering the property except for times agreed upon in writing in advance; have the security deposit returned at lease-end, minus any expenses arising from damage or unpaid rents; have the property maintained and appliances repaired in a timely fashion; not to be discriminated against during the rental or tenancy phases; be informed in writing of any changes to the contract or landlord-tenant arrangements; not to be evicted without proper notice. |
| Salvage | Damaged property that can be retrieved, reconditioned, and sold to reduce an insured loss. |
| Security Deposit | A monetary allowance given to a landlord as proof of intent; paid prior to the tenant occupying the premises. Can be either refundable or nonrefundable. If the tenant damages property, the landlord may withhold the money to cover the cost of repair |
| Size And Makeup Of Household | Factor that affects cost of premium; the more people in your house, the higher likelihood for claims |
| Spoilage Endorsement | Endorsement (optional) that provides coverage for the insured's perishable items |
| Tenancy By Entirety | A joint tenancy between husband and wife. |
| Tenancy In Common | A concurrent ownership of property, in equal or unequal shares, by two or more joint tenants who lack survivorship rights. |
| Tenant | Also known as lessee; Someone who pays to use, possess, or occupy property belonging to another. |
| Type Of Constructions | Factor that affects cost of premium; brick houses cost less to insure than frame houses |
