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Insurance Unit 4
| Term | Definition |
|---|---|
| Actual Cash Value | Coverage that compensates loss at current cash value considering depreciation |
| Attractive Nuisance | Anything on your property that might attract children into danger or harm |
| Depreciation | The reduction in the value of property as it gets older |
| Endorsement | An amendment to an individual policy that reflects any changes to the standard policy. |
| Exclusion | The section of an insurance policy specifying the losses that ate not covered |
| Flood Insurance | Insurance that covers damage caused by a flood |
| Guaranteed Replacement Cost | The cost to replace a piece of property or rebuild a structure. |
| Homeowner’s Insurance | Insurance that protects property owners in case of loss, loss of use, liability from the result of an injury |
| Loss of use | Coverage that pays for living expenses while repairs are made to a home or rental property that is uninhabitable because of loss |
| Natural Risks | Occurrences homeowners face in their region of the country in such as earthquakes, storms, and floods |
| Peril | In homeowner’s insurance, anything that results in a loss |
| Personal Inventory | Documentation of personal property that includes description, date of purchase, and purchase price |
| Personal liability | Coverage that protects policyholders from claims or judgments made against them. |
| Renters insurance | Insurance that protects tenants of a property owned by someone else against theft, property damage, loss of personal property, and loss of use |
| Umbrella Policy | Liability insurance that can be added when a clients homeowners or renters and auto insurance are handled by the same insurer. |