P&C Ch. 3 Vocab

names of insured, address, value of policy, contents for the period of time stated in the contract

portion of contract that spells out the company's consideration

the rules that you and your company agree to follow in making the policy function as intended

the part of the policy that eliminates coverage for items better covered else where, predictable losses, and catastrophic losses

policies that only have one line of coverage (homeowners only)

policies that have multiple lines of coverage (homeowners and auto)

loss that occurs after the initial loss

covers losses only if the occur at a named address

covers losses if property no matter the location of loss

causes of loss (active)

each peril that is covered is specifically names

any loss is covered that is not excluded

have to prove that a loss is covered (the insured in a named peril policy and the insurer in an open peril policy)

any dynamic which increases the likelihood that a peril will occur or which magnifies the damage done by a peril. (inactive)

today's replacement cost minus the depreciation

slick floors, icy walks, etc

intentional losses

apathy, sloth, neglect

today's replacement cost without subtracting depreciation

in case of older buildings, this may apply, instead of replacing the old walls with horse hair plaster, it would be replace with dry wall

value that the insurer and insured agree on before a loss occurs, different from stated value

the standard valuation in real estate, but almost never used in insurance 

amount of money that the insured has to pay in order to file a claim, a claim will not be filed until the deductible has been payed

things that are not covered in a loss

mechanism for rewarding policy owners who buy adequate amounts of coverage and punishing those who don't

did / should * the loss - the deductible = payment

amount of time that the policy is in effect

will cover losses in a certain area

the financial institution holding a mortgage on your property

does not allow benefits to be paid to someone other than the policy owner, but it does not create immunity for the mortgagee in the event of dishonest acts on the part of the policy owner 

two or more policies that cover the same perils

•       notify the company promptly and police if the law was broken
•       protect property from further damage
•       inventory the damage
•       allow the company to inspect and question you under oath
•       if the insurance company requests formal proof of loss, complete the forms
•       cooperate in the claims process

• Fire
• Lightning
• Explosion
• Windstorm or Hail

• Riot or Civil Commotion
• Vandalism
• Volcanic Action
• Vehicles or Airplanes
• Smoke
• Sprinkler Leakage
• Sinkhole Collapse

• plumbing
• falling objects
• weight of snow, ice, or sleet

• weight of rain
• weight of people or personal property
• hidden decay
• hidden insect or vermin damage
• defective methods of construction or materials if the collapse takes place at the time of construction