GLOSSARIES - PROPERTY TERMS PROPERTY TERMS
ABANDONMENT CLAUSE: A clause that prohibits the insured from abandoning partially damaged property to the insurer in order to claim a total loss. BASIC COVERAGE FORM: Any of the commercial or personal lines property forms which provide basic coverages. BLANKET INSURANCE: A form of property insurance that covers, in a single contract, either multiple types of property at a single location or one or more types or property at multiple locations. BUSINESS INTERRUPTION INSURANCE: A time element coverage that pays for loss of earnings when operations are curtailed or suspended because of property loss due to an insured peril. BUSINESS PERSONAL PROPERTY: Refers to furniture, fixtures, equipment, machinery, merchandise, materials, and all other personal property owned by the insured and used in the insured’s business. COINSURANCE CLAUSE: A clause under which the insured shares in losses to the extent that he is underinsured at the time of loss. COMPREHENSIVE GLASS INSURANCE POLICY: A policy which covers the insured against loss by breakage of glass from almost any peril. CONCURRENT INSURANCE: Two or more policies with the same conditions and coverages that cover the same interest in the same property. CROP INSURANCE: Provides protection against damage to growing crops by such perils as hail, windstorm, and fire. DATA PROCESSING COVERAGE: A special form providing protection for loss due to the breakdown of data processing systems. DECLARATION: A term used in insurance to denote that portion of the contract in which is stated such information as the name and address of the insured, the property insured, its location and description, the policy period and the amount of insurance coverage. DIRECT LOSS: A loss which is a direct consequence of a particular peril. DISAPPEARING DEDUCTIBLE: A type of deductible that gradually disappears as the loss gets larger. EASEMENT: An interest in land owned by another that entitles its holder to specific uses. ELECTRONIC DATA PROCESSING COVERAGE: Specialized type of insurance designed to cover computer equipment, data systems, information
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storage media and expenses or income loss related to EDP losses. EXTENDED COVERAGE: A common extension of property insurance beyond coverage for fire and lightning. EXTENDED PERIOD OF INDEMNITY: A business income coverage that continues coverage for income losses for a period of time after operations have resumed. EXTRA EXPENSE INSURANCE: A form that provides reimbursement to the insured for the extra expenses reasonably incurred to continue the operation of a business when the described property has been damaged by a peril covered by the contract. FIRE LEGAL LIABILITY: An insurance policy which protects the insured against liability incurred when his negligent actions result in the destruction of property which is in his care, custody or control. FLAT DEDUCTIBLE: A deductible that is a specific amount deducted from each loss or claim. FLOOD INSURANCE: A form of insurance designed to reimburse property owners from loss due to the defined peril of flood. FLOOR PLAN INSURANCE: A form of insurance covering merchandise held for sale by a retailer which has been used as collateral for a loan. FULL REPORTING CLAUSE: Under this clause, an insured is required to report values periodically. GLASS COVERAGE FORM: A commercial property form used to insure plate glass, lettering, frames and ornamentation. HAIL INSURANCE: Insurance against loss of crops caused by hail. HIGHLY PROTECTED RISK: Refers to property risks which meet the standards required for lower rates. HOMEOWNERS POLICY: A property and liability insurance contract that provides insurance against any of the property and liability perils to which a homeowner or renter is exposed. HOUSEHOLD PERSONAL PROPERTY: The term given to household goods, furniture & personal belongings of residents of a farm dwelling. INDIRECT LOSS: Loss resulting from a peril but not caused directly and immediately by that peril. INHERENT EXPLOSION: An explosion caused by some condition existing in and natural to an insured’s premises. An example would be a dust explosion in a grain elevator. INSTITUTIONAL PROPERTY: Property eligible for special treatment under package policies. LEASEHOLD INTEREST INSURANCE: A form of property insurance that provides protection against
2012 Jacksonville Claims Association Resource Guide
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