Relinquishment of ownership of property that has been lost or damaged; essentially “abandoning” this property to the Insurance Company for the purpose of claiming a total loss.

An unforeseen event or occurrence, or a mishap that is not expected or designed, causing physical injury to persons or damage to property.

The cost of replacing damaged or destroyed property with comparable new property, taking into consideration depreciation and obsolescence.

A person (other than the named insured) who is protected by the terms of the policy.

Someone who represents an insurer on investigations and dealings with respect to settlement of claims.

An insurance policy which covers against the loss caused by all perils, with the exception of those which specifically excluded by the terms of the policy.

The limit of payment for which an insurer is liable under a policy.

To set and state in writing the true value of property.

Referral of a dispute to an impartial party, chosen by the disputing parties to determine their rights or obligations.

A clause in an insurance policy that provides arbitration (see above) in case of disagreement.

Generally five or more vehicles, under the same ownership and management.

Someone to whom goods or property are entrusted for a stated purpose.

Increased value or property, due to physical improvements beyond simple maintenance or repairs.

A written or oral agreement given by an insurer to insure a risk, pending the issuance of a policy.

An independent person or firm, acting on behalf of the insured in placing business with insurance companies.

Insurance coverage on property under construction, including loss to buildings, machinery and equipment. This includes materials incidental to construction.

A demand made by the insured party for payment of the benefits as provided by the policy.

A clause in an insurance policy that requires the policyholder to carry a certain percentage of insurance in relation to the value of the property insured. If the policyholder fails to do this, then he or she will be responsible to pay for a portion of the loss plus the deductible.

The scope of protection provided under an insurance policy.

The amount of money that the policyholder must pay when a claim will be paid by the insurance company.

Reduction in value of property through use, aging, deterioration and obsolescence.

A driving record is given to each driver. The record is determined by the experience, prior accidents, traffic tickets (speeding) and driver training. The higher the driving record, the lower the risk.

Insurance covering the legal liability of professionals, such as architects, engineers and accountants. Most general liability policies exclude coverage to professionals. An errors and omissions policy will cover the mistakes or forgetfulness of one who offers a professional service.

Risks, perils or properties defined in the policy as not covered.

A pooling agreement between all automobile insurers in which a market is guaranteed for all licensed drivers and registered owners.

A separate policy available to cover the value of goods beyond the coverage of a standard renters insurance policy including movable property such as jewelry or sports equipment.

An act of deception and dishonesty carried out with the intent of securing some advantage to which one is not entitled.

The individual or business whose risk of financial loss from an insured peril is protected by the insurance policy.

The company providing the insurance coverage.

Liability imposed by law on individuals or corporations to pay for harm done to others.

Insurance which agrees to indemnify the insured for sums that he or she may be required by law to pay to third parties as damages for bodily injury or damage to property.

The person or company that loans money to another, taking the security of property in exchange, ie, the bank.

Failure to use the degree of care expected.

The event that caused a loss covered by the policy ie, natural disaster.

A form of liability insurance for the insured in the event that they become liable to pay money for damage or injury caused to others (not including automobile liability). See Errors and Omissions Insurance for professional liability.

A formal statement made by a policyholder to an insurance company regarding a loss, intended to give information to the insurer to enable them to determine the extent of their liability.

The cost to replace or repair an item without deduction for depreciation.

The remaining value of property after severe damage by fire or other peril. The overall loss is reduced by the salvage value.

The cancellation by the insured of a policy before its intended expiration. The insurance company pays a return premium which is less than the amount that actually remains unearned. In this way the policyholder has paid a penalty for a mid-term cancellation.

A written statement by a plaintiff detailing the facts which support the claim against the defendant and the compensation sought.

A special form of liability policy designed to protect the policyholder for certain unknown contingencies over and above the normal coverage and to provide a higher limit of insurance.

A building with no occupants or furnishings.

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