Heritage Publishing, Inc. © 2012
the loss of a favorable lease if it should be terminated as a result of damage to the property by a peril covered by the contract. LIMIT OF LIABILITY RULE: A prescribed procedure for allocating property insurance losses among insurers that provide protection on a given piece of property. LOSS ASSESSMENT CHARGE: An insured’s share of a loss assessment for property damage or liability which is charged by a corporation or association of property owners. LOSS OF USE INSURANCE: Coverage to compensate an insured for the loss of use of his property if it cannot by used. LOSS PAYABLE CLAUSE: A provision in property insurance contract that authorizes payment to persons other than the insured to the extent that they have an insurable interest in the property. MARKET VALUE CLAUSE: A provision that may be used in certain property insurance forms which obligates an insurer to pay the established market price of destroyed or damaged stock rather than its cost to the insured. MERCANTILE RISK: A term most often used in property insurance meaning a retail or wholesale risk. MILL CONSTRUCTION: Construction meeting certain high specifications and standards. MODIFIED FIRE-RESISTIVE CONSTRUCTION: A building which has exterior walls, floors and roof constructed of masonry or fire-resistive materials. MULTIPLE LOCATION POLICY: Protection of property in more than one location that is owned or controlled by one entity. NAMED PERILS: Perils specifically covered on property insured. NEW YORK STANDARD FIRE POLICY: The basic fire insurance contract which was used in nearly every state with only a handful of exceptions. NONCONCURRENCY: The situation that exists when a number of insurance policies intended to cover the same property against the same hazards are not identical. OCCUPANCY: This refers to the type or character of use of the property in question. OPEN POLICY: An insurance contract in which the terms of the policy are not fixed at the inception nor is an expiration date specified. OUTAGE INSURANCE: A type of insurance which covers against loss of earnings due to the failure of machinery to operate. PERSONAL PROPERTY: Any property of an insured other than real property.
2012 Jacksonville Claims Association Resource Guide
GLOSSARIES - PROPERTY TERMS
PHYSICAL DAMAGE: A generic term indicating actual damage to property. POWER INTERRUPTION INSURANCE: This coverage indemnifies the insured in the event of loss due to the interruption of power. PROBABLE MAXIMUM LOSS: The maximum amount of loss that one would expect under ordinary circumstances. PROPERTY INSURANCE:
Insurance that
indemnifies a person with an interest in physical property for its loss of the loss of its income producing abilities. PROTECTED RISK: A property risk which is within the geographical area protected by a fire dept. RAIN INSURANCE: A type of coverage which protects an insured against losses caused by cancellation of an outdoor event due to rain. RED-LINING: Discriminating unfairly against a risk solely because of its location. REPLACEMENT COST: The cost of replacing property without a reduction for depreciation. RISK: The physical units of property insured or the physical units or property at risk. SCHEDULE: A list of individual items covered under one policy, such as avarious buildings and contents. SINGLE INTEREST POLICY: Insurance protecting the interest of only one of the parties having an insurable interest in property. SMOKE DAMAGE: Damage caused by the smoke from a fire in contrast to damage caused by the actual combustion. SPECIAL COVERAGE FORM: Any of the commercial or personal lines property forms which provide coverage on an all-risk type basis. TENANTS POLICY: A homeowners form which is specifically designed for people who rent. TIME ELEMENT INSURANCE: Insurance which covers expenses consequent to damage or destruction by an insured peril that continue over a period of time. VACANT: A term used in property insurance to describe a building that has nothing in it. VALUABLE PAPERS AND RECORDS: An all-risk coverage for physical loss or damage to valuable papers and records of the insured. WATER DAMAGE CLAUSE: A provision affording coverage for specified causes of water damage. WAVE DAMAGE INSURANCE: Coverage against damage to property resulting from high waves or tides. WORK AND MATERIALS CLAUSE: This states that the insured is allowed to have the typical types of work and materials for his business.
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