Term
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Definition
| An event or happening, whether natural or human-made, that causes a financial loss. |
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Term
| 4 Types of Homeowners Insurance |
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Definition
| 1) Comprehensive, 2) Basic/named Perils, 3) Broad, and 4) No-Frills. |
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Term
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Definition
| Covers both buildings and contents for all perils. |
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Term
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Definition
| Covers only specific perils. |
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Term
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Definition
| Covers all risks on "big items" (house, etc.), but lists specific perils for contents. |
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Term
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Definition
| Very minimum insurance for properties that do not meet the standards. |
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Term
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Definition
| Insurance that protects you against the loss of your property or possessions. |
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Term
| Personal Liability Insurance |
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Definition
| Insurance covering all liabilities other than those resulting from the negligent operation of an automobile or those associated with business or professional causes. |
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Term
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Definition
| Protects the house and any attachments to it. |
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Term
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Definition
| Protects structures on the premises that are not attached to the house. Coverage is limited to 20% of the home's coverage. |
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Term
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Definition
| Protects any personal property that is owned/used by the policyholder, regardless of the location of this property. Coverage is equal to 70% of the home's coverage. |
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Term
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Definition
| Provides benefits if your home cannot be used because of insured loss. Coverage is limited to 20% of home's coverage. It includes: 1) additional living expenses, 2) fair rental value, and 3) prohibited use. |
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Term
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Definition
| A written attachment to an insurance policy to add or subtract coverage. |
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Term
| Personal Property Floater |
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Definition
| An extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located. |
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Term
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Definition
| The replacement value of the house less accumulated depreciation. |
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Term
| Replacement Cost Coverage |
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Definition
| Homeowners coverage that provides for the actual replacement cost of a stolen or destroyed item as opposed to the actual cash value. |
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Term
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Definition
| A homeowners policy that provides excess liability insurance against lawsuits and judgements generally ranging from $1 to $10 million. |
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Term
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Definition
| A provision or requirement of homeowners insurance requiring the insured to pay a portion of the claim, if he or she purchased an inadequate amount of insurance. |
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Term
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Definition
| A homeowners insurance rule stating that the replacement cost coverage is effective only if the home is insured for at least 80% of its replacement cost. |
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Term
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Definition
| The amount that you are responsible for paying before insurance coverage kicks in. |
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Term
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Definition
| An insurance company that distributes its products directly to customers, without the use of agents. Often they provide much cheaper premiums. |
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Term
| Personal Automobile Policy |
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Definition
| A standardized insurance policy for an individual or family. |
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Term
| 4 Types of Personal Automobile Insurance |
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Definition
| 1) Third-party liability coverage, 2) Medical expense coverage, 3) Uninsured motorist's protection coverage, and 4)Damage to your automobile coverage. |
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Term
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Definition
| Auto insurance coverage that combines both bodily injury and property damage liability. |
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Term
| Uninsured Motorist's Protection Coverage |
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Definition
| Coverage against injury caused by an uninsured motorist or a hit-and-run driver or property damage by an uninsured motorist or a hit-and-run driver. |
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Term
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Definition
| The portion of auto insurance that provides benefits to cover damage resulting from a collision with another vehicle/object. |
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Term
| Comprehensive Physical Damage coverage |
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Definition
| Auto insurance coverage for non-collision losses. |
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Term
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Definition
| A type of insurance in which your insurance company protects you regardless of whose fault it was. |
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Term
| Automobile Insurance Premiums Determinents |
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Definition
| 1) The type of car, 2) the use of the car, 3) the drivers age, sex, and marital status; 4) the drivers driving record; 5) where you live; 6) discounts that you qualify for. |
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