A review of a property claim to determine the value of a particular item, or the value of the loss to damaged property.



Termination of policy during the policy term.

During the first 60 days of a policy, a company can cancel a policy for any reason with appropriate notification. After 60 days of coverage, a company can only cancel coverage for pre-defined reasons.



A request for reimbursement for a loss covered by a policy. For example, a claim for items stolen from the policyholder’s home.



An amount that an individual must pay for covered services before the insurance company will begin to make payments.



A decrease in the value of a property

due to wear and tear or obsolescence.



Amendments or attachments to your policy which add, remove or otherwise change the standard coverage you have under your policy.



Certain causes and conditions listed

in the policy that are not covered.


Group Policy

A policy sold through an employment-based group, association or special group insurance trust. Individuals receive certificates of coverage from the group policy.


Independent Agent or Producer

A producer who represents more than one insurer.


Individual Policy

A policy sold directly by a company to an individual without requiring the individual to be a member of an employment-based group, association or special group insurance trust. These policies are usually sold by insurance producers but sometimes through direct mail or phone solicitations.


Inflation Protection

A policy option that provides for increases in benefit levels to help pay for expected increases in the costs of property repairs.



A formal device for reducing an insured’s potential costs by transferring specific risks to insurance companies.



Termination of a policy because of nonpayment of policy premiums or because the premium paid is less than what was to have been paid and the coverage no longer in existence.



Liability Coverage

Coverage for payment and services on behalf of an insured for loss arising out of his responsibility, due to negligence, to others imposed by law or assumed by contract


Market Value

A real estate term that describes what the current value of your home would be if you were to sell it – including the price of land. This amount is generally not involved in determining what amounts to purchase under an insurance policy.



Insurance company action to not extend coverage beyond the current policy term. Companies may only nonrenew coverage after making appropriate notices to policyholders.



The cause of a possible loss.

Personal Property All tangible property not classified as real property.



A written contract for insurance between an insurance company and a policyholder.

Premium The amount of money an insurance company charges, based on a given rate, to provide the coverage described in the policy for a specified period of time, generally one year.


Property Coverage

Insurance providing protection agai

nst the loss or damage to real and/or personal property caused by specific perils covered in the insurance policy or contract.


Real or Tangible Property

Land and anything permanently attached to, embedded in, or growing on the land.


Replacement Cost Coverage (on Dwelling)

Coverage intended to pay for losses based on how much it would cost to replace or repair what has been damaged at current costs without factoring in how much or

whether structures may have depreciated in value. The ultimate payment is based on the overall limits of the policy.


Replacement Cost (on Contents)

Coverage to pay for losses on the basis of how much it would cost to replace or repair them at current costs without factoring how the item may have depreciated in value from its purchase. Without replacement cost coverage, a policy only pays for the actual cash value of an item.



A limit within the policy maximum that imposes a smaller limit for specified coverage or types of property.



The process of examining, accepting or rejecting insurance risks, and classifying those selected, in order to charge the proper premium for each.