An abandonment clause in a property insurance contract permits the property owner to abandon lost or damaged property and still claim a full settlement.

An abandonment clause in a property insurance contract, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. An abandonment clause in a property insurance contract, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. An abandonment clause in a property insurance contract, under certain circumstances, permits property owners to abandon lost or damaged property and still claim a full settlement. If the insured party's property cannot be recovered, or the recovery or repair costs are more than its total value, it can be abandoned, and the insured party is entitled to a full settlement.
The abandonment clause typically comes into play with marine property insurance, such as boats or watercraft. Inaction—that is, failure to do something with the property or non-use of it—is not enough to demonstrate that the owner has relinquished rights to the property, even if such non-use has perpetuated for years.

Abandonment Clause

Absolute pollution exclusion is a commercial liability insurance clause that removes coverage of pollution resulting from regular business operations.

The Sudden and Accidental Pollution Coverage Myth

Summary of the Comprehensive Environmental Response, Compensation, and Liability Act (Superfund)

Summary of the Resource Conservation and Recovery Act

How the waters off Catalina became a DDT dumping ground

Montrose Chemical Corp. v. Admiral Ins. Co. (1995)

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

Court upholds denials of coverage even in the absence of mold, lead and asbestos exclusions

Absolute pollution exclusion is a commercial liability insurance policy clause that removes coverage of pollution resulting from regular business operations. A clause that denies coverage for all pollution events would be considered a total pollution exclusion and may exclude liability coverage for bodily injury or property damage caused by a pollution event. Absolute pollution exclusions are not total pollution exclusions, which exclude company liability from all pollution-related claims, and contain six exceptions. Absolute pollution exclusions to comprehensive general liability insurance policies became common after 1986 when standard pollution exclusions no longer contained “sudden and accidental” pollution incidents. Absolute pollution exclusions are not true absolute exclusions in that they do allow coverage for incidental pollution events, such as those caused by events not related to normal business operations.

Absolute Pollution Exclusion

An act of God is a phrase used to describe an event outside of human control, such as a natural disaster.

An act of God describes an event outside of human control or activity, such as a natural disaster like a flood or an earthquake. In the U.S., flood insurance is offered by the National Flood Insurance Program, which is managed by the Federal Emergency Management Agency (FEMA).
Events, such as floods, earthquakes, or natural catastrophes, trigger acts of God. A judge ruled the flooding in New Orleans caused by Hurricane Katrina (an act of God) as an act of negligence because the U.S. Army Corps did not properly maintain flood defenses. In the world of insurance, the definition of an act of God is essentially the same as the standard definition: an act of nature that couldn't have been predicted, prevented, and which no human is to blame. Of note, some homeowner insurance policies cover damage to the home itself related to specific acts of God but not to other buildings or structures owned by the policyholder.

Act Of God

Additional living expense insurance covers additional costs of living incurred by a policyholder who is temporarily displaced from their place of residence.

Additional living expense (ALE) insurance refers to coverage under a homeowners, condominium owner's, or renter's insurance policy that covers the additional costs of living incurred by a policyholder should they be temporarily displaced from their place of residence. Some of the other items provided for under ALE coverage may include:
**Costs of doing laundry**—These may be covered if, for example, you have to send your laundry out because you don't have access to a washer and dryer at your temporary home
**Furniture rental**—Costs to rent special items you are accustomed to having may be covered and considered
**Storage costs**—For contents under special circumstances
**Moving or displacement costs**
**Pet boarding**
Although the above costs may be covered by ALE, there will always be an assessment of how claimed costs compare to the normal costs of a policyholder's lifestyle. Additional living expense (ALE) insurance refers to coverage under a homeowners, condominium owner's, or renter's insurance policy that covers the additional costs of living incurred by a policyholder should they be temporarily displaced from their place of residence. Additional living expense insurance can cover things like the increase in a monthly food bill due to having to eat out at restaurants or even the loss of income that might be incurred if the insured person has been renting out part of their dwelling to a tenant. ALE coverage will not pay for damage to your belongings or to the structure of your home, but those should be covered by other elements of your insurance policy.

Additional Living Expense (ALE) Insurance

Additional Expense Coverage is insurance coverage for expenses beyond what the policyholder was paying prior to a claim being filed.

Additional expense coverage is coverage that provides funds for expenses above what the policyholder was paying before a claim was made. For commercial policies, this type of coverage would pay additional costs in excess of normal operating expenses that a business would incur to keep operating while its property or plant is being repaired or replaced under the covered claim.
Extra expense coverage can be purchased in addition to or instead of business income coverage, depending on the size and needs of the organization. Extra expense coverage kicks in after a disaster has occurred and the business has moved to a different location or has had to change its regular mode of functioning. Before providing funds for additional expense coverage, insurers will try to establish a baseline of what the policyholder was paying for everyday expenses before a claim was made. Additional expense coverage is coverage that provides funds for expenses above what the policyholder was paying before a claim was made. For example, in the case of a homeowner who has their property damaged in a fire, additional expense coverage may cover expenses related to extra costs for food, laundry, and transportation.

Additional Expense Coverage

Aggregate product liability limit is the maximum amount of money an insurance company will pay when a product's liability insurance coverage is in effect.

The aggregate product liability limit is the maximum payout an insurance company will make during the life or term of an insurance product. An umbrella policy whose limit has not been reached can be used to cover costs once an aggregate limit for a general insurance policy is reached. The insurance company has placed an aggregate product liability limit at $250,000 in claims per year, or $500,000 over the life of the policy. The aggregate product liability limit helps insurers limit their exposure to risks with respect to a given CGL policy. The aggregate product liability limit is the maximum payout an insurance company will make during the life or term of an insurance product.

Aggregate Product Liability Limit

An agreed amount clause is a property insurance provision where the insurer agrees to waive the coinsurance requirement for the insured. 

The agreed amount clause is a property insurance provision through which the insurer agrees to waive the coinsurance requirement. It is the tangible value for which the property could sell (which is always less than what it would cost to replace it).
Calculation of actual cash value is calculated by subtracting depreciation costs from replacement costs, with depreciation determined by establishing an expected lifetime and then determining the remaining percentage of life. The agreed amount clause requires a signed statement of values or actual cash value; this statement details the value of the insured property. Insurers will require a statement of property values–signed by the policyholder–as a condition for activating or including an agreed value provision in a policy. Calculation of actual cash value is calculated by subtracting depreciation costs from replacement costs, with depreciation determined by establishing an expected lifetime and determining the remaining percentage of life.

Agreed Amount Clause

All-risks coverage is insurance coverage for any incident that an insurance policy doesn’t specifically exclude.

All-risks coverage provides coverage for any incident that an insurance policy doesn’t specifically exclude. All-risks coverage offers much broader protection than any named risks coverage because named risks coverage only covers incidents the policy specifically includes. However, the wording of “all-risks coverage” is somewhat misleading because all insurance policies contain numerous exclusions.
However, the wording of “all-risks coverage” is somewhat misleading because all insurance policies contain numerous exclusions. It is important for consumers to keep in mind that all-risks coverage doesn’t mean you can use your umbrella policy to pick up where your health insurance coverage falls short; an umbrella policy won’t cover your medical treatment. All-risks coverage, also called all-perils coverage, offers much broader protection than any named risks coverage.

All-Risks Coverage

All-in coverage is a type of insurance coverage that applies to communal features in residential multi-family and structures inside the individual units.

All-in coverage is a type of insurance coverage that applies to communally used features in residential multi-family buildings as well as the structures inside the individual units. All-in coverage, also called all-inclusive coverage, is used for condominiums (or condos), a type of residential property in which some common elements, such as the entryway or light fixtures, are used by all residents of the building.
All-in coverage or inclusive coverage is a type of insurance purchased by condominium associations that covers the entire original structure of the condominium building. Rather than choose all-in coverage, a condominium association can instead choose to purchase single entity coverage or bare walls coverage. All-in coverage is a type of insurance coverage that applies to communally used features in residential multi-family buildings as well as the structures inside the individual units. Bare walls coverage is the most limited type of coverage that a condominium association can choose to purchase.

All-In Coverage

Bare walls coverage is a type of insurance coverage that applies to communally used features in residential multi-family buildings. 

Bare walls coverage is an insurance policy that applies to communally used features in multi-family residential buildings. Bare walls coverage is used when the structure of a building is shared by many different people, which makes it difficult for any one person to carry the insurance policy on the property. Bare walls coverage is used when the structure of a building is shared by many different people, which makes it difficult for any one person to carry the insurance policy on the property. Bare walls coverage is an insurance policy that applies to communally used features in multi-family residential buildings. Bare walls coverage is an insurance policy that applies to communally used features in multi-family residential buildings.

Bare Walls Coverage

Blanket insurance covers many types of property in one place, the same type of property in many places, or numerous properties in multiple places.

Blanket insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. Blanket insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. Individuals who don't own multiple properties, and don't have complicated health insurance needs, probably don’t need a blanket insurance policy. That's why it's important for consumers to work with a knowledgeable insurance agent who can customize a package of coverages that fit unique needs a person might have.
Since blanket insurance will typically cost about 10% more than conventional policies, it's important for someone to get it only if they need it. If someone has multiple properties that need to be insured—whether residential, rental, or commercial—a blanket property insurance policy may be ideal.

Blanket Insurance

Broad Form Personal Theft Insurance covers the theft or loss of personal assets. 

Broad form personal theft insurance covers the theft or loss of personal assets. Consider the boilerplate language from a standard homeowners policy that's in wide use:  We do not pay for: a. theft by an insured person; b. theft in or to a structure being built, or theft of materials and supplies for use in construction of the structure, until the structure is finished and occupied; c. loss of a precious or semiprecious stone from its setting; d. loss that results from the theft of a “credit card”; or e. theft from a part of the dwelling usually occupied solely by an insured person while it is rented to others. Broad form personal theft insurance covers the theft or loss of personal assets. Personal assets insurance is commonly included in homeowners and auto insurance, however, additional insurance may be purchased. Personal assets insurance is commonly included in homeowners and auto insurance, however, additional insurance may be purchased.

Broad Form Personal Theft Insurance

Building ordinance coverage is insurance for increased costs of restoring damaged buildings up to code.

Building ordinance coverage is insurance that covers the increased costs associated with repairing a damaged building. Building ordinance coverage is a form of insurance associated with the cost of repairing a damaged building, such as bringing an old building up to code. His building ordinance coverage also provides enough money for John’s home to be rebuilt to current codes, not the 1970 codes that were in effect when his home was originally constructed. John’s basic homeowners' insurance policy only pays to rebuild the 60% of the damaged structure, but his building ordinance coverage pays to demolish the remaining 40% and rebuild 100% of the structure. A basic insurance policy might not provide enough coverage for these increased costs, but building ordinance coverage would fill in this gap.

Building Ordinance Coverage

A canine liability exclusion is a home insurance clause that indemnifies the insurer against damages caused by the policyholder's dogs.

A canine liability exclusion is a type of clause that is often included in homeowner insurance contracts. In some cases, the insurance company will determine which breeds of dogs are excluded from coverage or may exclude all dogs by default. The need for a canine liability exclusion arose because many insurers felt reluctant to insure homeowners who owned certain breeds of dogs that are considered aggressive. Generally speaking, the types of risks that would be excluded from coverage under a homeowner’s insurance policy include large catastrophes such as earthquakes or wars, or acts that could be attributed to the owner’s own negligence. Although policyholders may be able to specifically purchase insurance for their dogs separately, this could be expensive, especially if the dog has a history of biting people or causing property damage.

Canine Liability Exclusion

Casualty insurance is a broad category of coverage against loss of property, damage or other liabilities. This includes workers' compensation.

Casualty insurance is a broad category of insurance coverage for individuals, employers, and businesses against loss of property, damage, or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, and theft insurance. In addition to auto and liability insurance, casualty insurance is an umbrella term traditionally used to describe many other types of insurance, including aviation, workers' compensation, and surety bonds. Just as you can purchase property insurance to protect yourself from financial loss, liability insurance protects you from financial loss if you become legally liable for injury to another or damage to property. Just as you can purchase property insurance to protect yourself from financial loss, liability insurance protects you from financial loss if you become legally liable for injury to another or damage to property.

Defining Casualty Insurance

Catastrophe accumulation refers to the aggregate claims that would need to be paid if one or more catastrophes were to occur across an entire region.

In the insurance industry, the term “catastrophe accumulation” refers to the aggregate claims that would need to be paid if one or more catastrophes were to occur across an entire region. Depending on the level of catastrophe accumulation they record, the insurance company may need to raise their insurance premiums or purchase reinsurance to manage their risk. If the claims rise above their expected level, however, the insurance company may be unable to fund the claims through the previously-collected insurance premiums, leading to a loss and potential insolvency. A catastrophe accumulation is an estimate of the potential risk born by an insurance company if one or more catastrophes were to occur within a particular region. In the insurance industry, the term “catastrophe accumulation” refers to the aggregate claims that would need to be paid if one or more catastrophes were to occur across an entire region.

Catastrophe Accumulation

Catastrophe insurance protects businesses and residences against natural disasters, such as earthquakes and floods, and against man-made disasters.

Global catastrophes caused USD 56 billion insured losses in 2019, estimates Swiss Re Institute

Catastrophe insurance protects businesses and residences against natural disasters such as earthquakes, floods, and hurricanes, and against human-made disasters such as a riot or terrorist attack. Depending on your specific circumstances and the coverages, several scenarios could happen to you with flood insurance:
If you bought flood insurance to cover your home and personal property, you'll receive compensation for both the damage to your residence and to your belongings.
If you bought flood insurance only to cover your home, you wouldn't receive compensation for personal belongings.
NFIP requires 30-day waiting period from the date of purchase before the flood insurance policy takes affect.﻿﻿ Because of this, if you did not purchase your flood insurance well ahead of flood warnings, you might not get any compensation for flooding damages. Special catastrophe insurance is available for specific natural disasters, such as flood insurance, storm insurance for hurricanes and tornadoes, earthquake insurance, and volcano insurance. Special catastrophe insurance is available for specific natural disasters, such as flood insurance, storm insurance for hurricanes and tornadoes, earthquake insurance, and volcano insurance. In contrast, catastrophe insurance refers to more far-reaching coverage, applying to man-made disasters as well as natural ones; it also tends to refer to a standalone policy that is separate from regular homeowners insurance.

Catastrophe Insurance

“Chattel mortgage non-filing insurance” refers to a type of insurance product purchased by chattel mortgage providers and other financial firms.

In finance, the term “chattel mortgage non-filing insurance” refers to a type of insurance product purchased by chattel mortgage providers and other financial firms. It specifically protects against the risk of being unable to enforce a claim against the assets because of a failure to file the necessary paperwork.
Chattel mortgage non-filing insurance does not protect against other potential risks, such as the collateral in question becoming damaged during the loan term.
The term “chattel mortgage” is relatively uncommon in the United States, as it is mainly used in countries whose legal systems are based on English law, such as the United Kingdom or Australia. The non-filing component of chattel mortgage non-filing insurance refers to the intentional failure of the lender to file the chattel mortgage record or files with the proper authorities. In those situations, the lender may not be able to enforce its claim, particularly when the borrower has obtained chattel mortgages from multiple lenders.
Chattel mortgage non-filing insurance protects secured lenders who rely on movable assets as their collateral. In finance, the term “chattel mortgage non-filing insurance” refers to a type of insurance product purchased by chattel mortgage providers and other financial firms.

Chattel Mortgage Non-Filing Insurance

A coinsurance formula is the homeowner's insurance formula that determines the amount of reimbursement that a homeowner will receive from a claim.

The coinsurance formula is the homeowner's insurance formula that determines the amount of reimbursement that a homeowner will receive from a claim. Here are two examples that demonstrate how the coinsurance clause works:
Building Value $1,000,000
Coinsurance Requirement 90%
Required Amount of Insurance $900,000
Actual Amount of Insurance $600,000
Amount of Loss $300,000
The coinsurance formula is:
(Actual Amount of Insurance )     X    Amount of Loss = Amount of Claim
(Required Amount of Insurance)
Inserting the amounts above in the formula produces the following calculation:
($600,000)   X   $300,000  =  $200,000
So, in this situation, the owner absorbs a $100,000 coinsurance penalty since they retained one-third of the risk rather than transfer it to the insurer. If the building had been insured to the amount required by the coinsurance clause (in this case, 90%), the coinsurance calculation would look like this:
(Actual Amount of Insurance)    X  Amount of Loss = Amount of Claim
(Required Amount of Insurance)
($900,000)  X  $300,000  =  $300,000
In the second example, since the owner met the coinsurance requirement, they are not a co-insurer, and the claim is paid without penalty. The coinsurance formula is the homeowner's insurance formula that determines the amount of reimbursement that a homeowner will receive from a claim. The coinsurance formula is applied when a property owner fails to maintain coverage of at least 80% of the home's replacement value.

Coinsurance Formula

A policyholder’s personal liability insurance pays for covered losses and damages sustained by third parties, along with related legal costs.

Table of Contents
What Is Personal Liability Insurance?
Understanding Personal Liability Insurance As the name implies, personal liability insurance covers an individual against claims for liability arising out of bodily injury or property damage that are related to personal activities. There are three ways to get personal liability coverage:
1.  It is packaged with your homeowners, renter's, or dwelling insurance policy. Let's say your personal liability coverage under your homeowners insurance maxes out at $300,000. Other types of liability insurance, such as malpractice insurance, cover claims arising from your professional or business activities.

Personal Liability Insurance

A controlled insurance program (CIP) is a type of insurance policy that consolidates coverage for contractors and subcontractors into a single policy.

Benefits and Challenges of Using Controlled Insurance Programs in Construction Projects

Contractor Controlled Insurance Programs (CCIP)

THE OWNER-CONTROLLED INSURANCE PROGRAM (OCIP)

Table of Contents
What Is a CIP? CIPs fall into two different categories, including contractor-controlled insurance programs (CCIPs) and owner-controlled insurance programs (OCIPs).
CCIPs, which are also called wrap-up insurance policies, provide parties involved in a construction project with a form of risk management. A controlled insurance program is a type of insurance coverage that lets multiple parties working on a single project band together under one policy. The leader of the project in this arrangement pays the policy's insurance premiums upfront and is reimbursed by the remaining project members, either through a direct repayment or by reducing the payments that are owed to those members as part of the construction project. The term controlled insurance program (CIP) refers to an insurance product that provides coverage on a construction project.

Controlled Insurance Program (CIP)

Crop-hail insurance is a type of insurance that provides coverage for agricultural products damaged by hail and fire.

Crop-hail insurance is a type of insurance that provides coverage for damage and destruction by hail and fire. In the United States, farmers can purchase crop insurance from the Federal Crop Insurance Corporation (FCIC), a government program.﻿﻿ This type of policy, which is officially known as Multiple Peril Crop Insurance (MPCI), generally covers losses due to other natural causes, including drought and disease. Crop-hail insurance is a type of private insurance that provides coverage for agricultural products destroyed or damaged by hail and fire. In contrast, crop-hail insurance is a type of private insurance; it is not offered as part of a federal insurance program. Crop-hail insurance is a type of insurance that provides coverage for damage and destruction by hail and fire.

Crop-Hail Insurance

Debris removal insurance is a property insurance policy section providing reimbursement for clean-up costs associated with damage to property.

1943 New York Standard Fire Insurance Policy

Debris removal insurance is a section of a property insurance policy that provides reimbursement for clean-up costs associated with damage to property. As such, the impact on the total amount of the loss, and the coverage limitations on these costs in most standard property insurance policies, are frequently overlooked in arranging the coverage initially.
Debris removal insurance coverage is not typically part of a property owner's basic property insurance. Debris removal costs were not considered in determining compliance with the coinsurance clause of the policy; however, if a coinsurance penalty was found to apply, reducing the recovery of the property loss, customary adjustment practice was to apply the same limitation to the payment for debris removal. Debris removal insurance is a section of a property insurance policy that provides reimbursement for clean-up costs associated with damage to property. This gave rise to controversy, with some insurers routinely including these costs as a part of the claim settlement and others rejecting or resisting payment, contending that this cost was not a direct result of the loss, and, as such, not covered.
The policy provision may include the removal of hazardous materials, but not pollutants.

Debris Removal Insurance

Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance.

The term fire insurance refers to a form of property insurance that covers damage and losses caused by fire. Fire insurance policies provide payment for the loss of use of the property as a result of a fire or for additional living expenses necessitated by uninhabitable conditions, as well as damage to personal property and nearby structures. Homeowners should document the property and its contents to simplify the assessment of items damaged or lost in the event of a fire.
A fire insurance policy includes additional coverage against smoke or water damage due to a fire and is usually effective for one year. If an insurance policy excludes coverage for fire damage, a homeowner may need to purchase separate fire insurance—especially if the property contains valuable items that cannot be covered with standard coverage. Fire insurance is property insurance that provides additional coverage for loss or damage to a structure damaged or destroyed in a fire. Purchasing additional fire coverage helps to cover the cost of replacement, repair, or reconstruction of property above the limit set by the property insurance policy.

Fire Insurance

In a first-loss policy, the insured agrees to take less than full value for damaged property in return for not being penalized for under-insuring the property.

A first-loss policy is a type of property insurance policy that provides only partial insurance. First-loss policies are most commonly used as theft or burglary insurance to insure against events where a total loss is extremely rare (i.e., the burglary of all goods contained in a large store). A first-loss policy is a type of property insurance policy that provides only partial insurance. A first-loss policy is a type of property insurance policy that provides only partial insurance. The main limitation of first-loss insurance is that the full value of a loss is not completely indemnified—in other words, the loss is not fully covered.

First-Loss Policy

Floater insurance covers property that is easily movable and provides additional coverage beyond the scope of traditional policies.

Special coverage for jewelry and other valuables

Homeowners Insurance Endorsements And Floaters

Does Homeowners Insurance Cover Damaged or Lost Jewelry?

Table of Contents
What Is an Insurance Floater?
What Is an Insurance Floater Here are some key items that floater insurance covers:
**Fine Art—**Such things as antiques, books, china, crystal, collectibles, fine arts, furniture, glass, lithographs, mirrors, rugs, tapestries, paintings, pictures, sculptures, and silverware
**Firearms**—Both antique and modern
**Cameras—**Cameras of any type, projectors, and audio-visual equipment for personal use only, not professional use
**Sporting Equipment—**Golf, surfing, tennis, or other types of equipment for personal use only, not professional use
**Musical Instruments—**Pianos, guitars, electronics, and other types of music equipment for personal use only, not professional use
**Postage Stamps—**Postage stamps and related items
**Collections—**Collectible coins (including gold and silver), baseball cards, comics, LPs and CDs, and other collections
Generally the limit of coverage that homeowners insurance provides for jewelry and other small valuable items
For those who own jewelry, furs, collectibles, or other costly or irreplaceable items, there are two ways you can increase insurance coverage to levels more in line with the value of those items. Floater insurance is a type of insurance policy that covers personal property that is easily movable and provides additional coverage over what normal insurance policies do not. A standard homeowners insurance policy includes coverage for all perils included in your policy (such as fire, windstorm, theft, and vandalism) for jewelry and other precious items, such as watches and furs. To keep coverage affordable, standard homeowners policies generally only provide about $1,500 in coverage for such items, which means that the insurer won’t pay more than that amount for any given piece of jewelry or other valuable items.

Floater Insurance

Flood insurance is a type of property coverage that protects homeowners from water damage to the structure and/or contents of their property.

What Impacts Flood Insurance Policy Costs?

Flood Map Updates: What To Do If You're Experiencing an Increase in Flood Risk

Flood Map Updates: Increasing Risk From Higher to Higher

Flood insurance is a type of property insurance that covers a dwelling for losses sustained by water damage specifically due to flooding caused by heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure. Flood insurance is required coverage when applying for a federally backed mortgage of a property in a federally designated flood zone (an area at high risk of flooding due to heavy rains, flash flooding, and mudflows).
The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), offers flood insurance to homeowners in participating communities, along with those determined to be in the NFIP-designated floodplains.﻿﻿ The actual insurance policies are issued by private insurance companies, not by the NFIP or FEMA. A type of catastrophe insurance, a flood insurance policy is different than the basic hazard insurance coverage contained in a homeowners insurance policy. The pricing of flood insurance policy is based on the NFIP-designated flood zone in which the property is located, as well as the property age, elevation, and the number of floors. A Preferred Risk Policy (a lower-cost flood insurance policy) provides both building and contents coverage for properties in moderate-to-low risk areas for one price.﻿﻿ Certain communities that have implemented flooding safeguards qualify for discounts under the NFIP, too.

Flood Insurance

Hazard insurance protects a property owner against damage caused by fires, severe storms, earthquakes, or other natural events.

Hazard insurance is coverage that protects a property owner against damage caused by fires, severe storms, hail/sleet, or other natural events. If homeowners live in a high-risk area, they often need a separate hazard insurance policy to adequately protect their property, such as a flood insurance policy, or a policy that protects against sinkholes and landslides (such movements of the earth are rarely covered by conventional homeowners insurance's hazard coverage). Within the insurance industry, hazard insurance refers to a portion of a general homeowners insurance policy that protects the structure of the home; catastrophe insurance usually refers to a separate, freestanding policy that covers specific types of disaster, including man-made ones. Strictly speaking, what they want you to have is, in fact, hazard coverage since it is the portion of the homeowners insurance directly related to the home structure itself (as opposed to personal liability, loss of use, or personal property coverage).
Usually, purchasing a general homeowners policy will satisfy the lender's requirement, though the level of protection required will depend on the laws of the local municipality and other special considerations. In some areas, certain natural or weather-related activity is excluded from the hazard coverage of homeowners insurance—usually because the area is so prone to these events, and it's too costly for the insurance issuer to include them in a standard policy.

Hazard Insurance

A home warranty is a contract that covers the cost of maintaining household systems or appliances, not to be confused with homeowners insurance.

A home warranty is a residential service contract that covers the cost of maintaining household systems or appliances for a set period. Although it is possible to purchase additional coverage for a home feature not available with basic coverage, it is also likely that some warranty companies do not cover specific components of a home. Homeowners should analyze the offerings of home warranty companies to understand which out-of-pocket expenses they would be liable for in the event of a claim and whether a home warranty is worth it. For example, some home warranty companies cover outdoor pools or spas for an additional premium to the policy, whereas other companies may not warranty a pool on their offerings. A home warranty is a service contract that, for a set period of time, covers the cost of maintaining household systems or appliances.

Home Warranty

Homeowners insurance covers losses and damage to an owner's residence, furnishings, and other possessions, as well as providing liability protection..

Homeowners insurance is a form of property insurance that covers losses and damages to an individual's residence, along with furnishings and other assets in the home. A homeowners insurance policy usually covers four kinds of incidents on the insured property: interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that occurs while on the property. Basically, while both deal with residences, homeowners insurance protects the homeowner and mortgage insurance protects the mortgage lender Homeowners insurance is a form of property insurance that covers losses and damages to an individual's residence, along with furnishings and other assets in the home. Homeowners insurance is a form of property insurance that covers losses and damages to an individual's house and assets in the home.

Homeowners Insurance

Hurricane insurance usually refers to an extra deductible on a homeowners policy that specifically covers hurricane-related damage in high-risk areas.

Background On: Hurricane and Windstorm Deductibles

2018 Rhode Island General Laws, Title 27 - Insurance, Chapter 27-76 Weather Related Losses, Section 27-76-2 Hurricane Deductibles, Triggers and Policyholder Notice

Actually, hurricane insurance doesn't exist as a specific, separate type of policy. The states/regions where hurricane deductibles apply are:
Connecticut
Massachusetts
Mississippi
North Carolina
Pennsylvania
Rhode Island
South Carolina
Washington D.C.
Homeowners should also be aware that even if they pay a hurricane deductible, gaps in their coverage might exist. The term usually refers to what is, strictly speaking, a hurricane deductible on a homeowners insurance policy: an extra amount a homeowner must pay before the insurer will cover the damage or destruction caused by a hurricane. While a regular homeowners insurance policy deductible is a fixed dollar amount—say, $500 or $2,000—a hurricane deductible might be 2% to 5% percent of a home’s insured value, or $2,000 to $5,000 for every $100,000 in home coverage. Many homeowners insurance policies in coastal states impose a hurricane deductible, an extra out-of-pocket amount the policyholder incurs before coverage kicks in.

Hurricane Insurance

A jewelry floater is a type of supplemental insurance designed to protect precious jewelry.

A jewelry floater is a type of supplemental insurance designed to protect precious jewelry. Although basic homeowners policies typically provide some jewelry coverage, individuals with sizable or valuable jewelry collections often opt to purchase a jewelry floater in addition to their basic policy. Although these types of insurance policies generally include some coverage for jewelry, jewelry floaters can expand this coverage, making them more suitable for valuable items. A jewelry floater is an optional addition to a homeowner's insurance policy that protects against financial loss from the damage or theft of valuable jewelry. If the jewelry does get damaged, stolen, or lost, the jewelry floater can provide a higher dollar amount of coverage than would be possible under the basic home insurance plan.

Jewelry Floater

Loss settlement amount is a term used to denote the amount of a homeowner's insurance settlement.

Loss settlement amount is a term used to denote the amount of a property insurance settlement, whether real estate or personal property. The three loss settlement options are actual cash value, replacement cost, and agreed value. Actual cash value (ACV) usually carries cheaper premiums than replacement cost, which is why many people end up with his type of loss cost settlement option. There are three loss settlement options offered by insurance companies: agreed value, replacement cost value, and actual cost value.
The most expensive premiums are usually attached to the replacement cost rather than the actual cash value option. The loss settlement amount largely depends on which type of loss cost settlement option a policyholder has agreed to in their homeowner's insurance policy. The agreed value loss cost settlement option is typically reserved for unique items, or items of high worth where the value cannot be easily assessed.

Loss Settlement Amount

A named perils insurance policy is a home insurance policy covering only losses incurred to a property from hazards or events named on the policy.

A named perils insurance policy is a home insurance (or business) insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. A named perils insurance policy is a home insurance (or business) insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. If a homeowner doesn't live in an earthquake and flooding prone area, they may elect to get a named perils insurance policy and only declare coverage against fire, theft, and hail, while leaving the earthquake and flooding coverage off the policy. When a person purchases an all risks policy, it covers all perils except those expressly excluded from the list.
Keep in mind that all risks policy does not necessarily guarantee your property will be covered against all forms of perils. A named perils insurance policy only provides coverage on losses incurred to your property from events or risks named on the plan.

Named Perils Insurance Policy

Unscheduled personal property refers to items automatically covered by homeowners insurance without the need for an appraisal or receipt.

Unscheduled personal property is a term used in the property insurance sector that refers to personal possessions that are insured under a policy without being individually listed in a separate section, or "schedule," of the insurance contract. A policy could cover $5,000 worth of unscheduled property, for example, but have limits of up to $750 for clothing, $1,000 for jewelry, and $2,000 for lost or damaged cash.﻿ Similarly, unscheduled personal property may be subject to deductibles, either for specific types of property or for their combined amount.
Property insurance often involves a mixture of scheduled and unscheduled property. A floater insurance contract would be added as a rider to the property insurance that would need to specify each item’s worth and whether they can be replaced with their actual cash value, agreed amount value, or if equivalent assets would need to be found. Unscheduled personal property insurance tends to cover items not valued highly enough to warrant separate insurance. Unscheduled personal property consists of assets that are insured in a property insurance contract.

Unscheduled Personal Property

A notice of nonresponsibility is a legal document used to claim a lack of liability for nonpayment for services rendered.

Civil Code Article 4: Property Subject to Lien, 8444

A notice of non-responsibility is a legal document used by property owners in the U.S. to protect themselves from liability for nonpayment for services done to improve that property. Notices of non-responsibility vary from state to state, but in general, they are forms filled out by a property owner, filed with the county clerk, and posted at the owner's property, declaring that the property owner is not liable for work done on the property if the property owner has not directly contracted for that work to be done. Under California law, if a property owner has rented out a property to a tenant, and then the tenant contracts with a construction company to improve the property without the owner's consent, the property owner has ten days to file a notice of non-responsibility with the county clerk’s office and post it at the property site. For instance, California state law allows for property owners or property managers to fill out and file notices of non-responsibility for any claim that may arise from tenant improvements on the property. A notice of non-responsibility is a legal document used by property owners in the U.S. to protect themselves from liability for nonpayment for services done to improve that property.

Notice Of Non-Responsibility

Personal property is a class of property that can include any type of asset other than real estate.

Personal property is a class of property that can include any asset other than real estate. The distinguishing factor between personal property and real estate, or real property, is that personal property is movable; that is, it isn't fixed permanently to one particular location. Just as some loans—mortgages, for example—are secured by real property like a house, some loans are secured by personal property. When assessing a would-be borrower's creditworthiness, lenders may look at the total current value of their personal property added to their real property. Like real property, such as a house, loans can be secured by personal property.

Personal Property

Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.

Property insurance is a broad term for a series of policies that provide either property protection coverage or liability coverage for property owners. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in case there is damage or theft—and to a person other than the owner or renter if that person is injured on the property.
Property insurance can include a number of policies, such as homeowners insurance, renters insurance, flood insurance, and earthquake insurance. Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies. Property insurance includes homeowners insurance, renters insurance, flood insurance, and earthquake insurance. HO4 property insurance is usually known as renter's insurance—it covers tenants from loss of personal property and liability coverage.

Property Insurance

Renter’s insurance is property insurance that covers a policyholder’s belongings, liability, and possibly living expenses in case of a loss event.

Your renters insurance guide: Renters insurance protections

Your renters insurance guide: Coverage for personal possessions: 1. How much insurance should I buy?

Your renters insurance guide: Coverage for personal possessions: 2. Should I choose replacement cost or actual cash value coverage?

Your renters insurance guide: Coverage for personal possessions: 5. What is a 'floater' and do I need one?

Your renters insurance guide: Coverage for personal possessons: 3. What disasters are—and are not—covered?

Your renters insurance guide: Liability protection

Your renters insurance guide: Additional living expenses

Table of Contents
Expand ACV policies pay only for what an item was worth at the time it was damaged or destroyed. Replacement cost coverage costs more, but it will provide a payout large enough to buy a new item to replace the old one at the current full retail price.﻿﻿ If there are abnormally high-value possessions, a renter may want to add a floater, which is a separate policy that provides additional coverage for costly valuables if they are lost or stolen.
Renter’s insurance covers a policyholder against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and certain types of water damage.﻿﻿ However, most renter’s insurance policies do not cover floods or earthquakes. In general, renter’s insurance offers three types of financial protection:
Coverage for personal possessions
Liability protection
Additional Living Expenses (ALE) protection
The following questions will help you choose the right coverage when you are shopping around for renter’s insurance or discussing your needs with an insurance professional. Renter’s insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. It’s available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft, or townhouse. For example, if a flood or fire destroys all the personal property within a rented apartment, the structure would be covered under the landlord’s policy, but the personal property would only be covered through a renter’s insurance policy.

Renter’s Insurance

Reproduction cost refers to the costs involved with reproducing an asset or property with same specifications as insured property based on current prices.

Reproduction cost refers to the expense involved with identically reproducing an asset or property with the same materials and specifications as an insured property based on current prices. As an example, you will need to add the individual cost of the foundation, cost of roof and framing, the cost of mechanical equipment (such as the HVAC system), and the cost of walls and finish work to arrive at a comprehensive reproduction cost. Reproduction cost looks at the cost of creating an exact replica, and should not be confused with replacement cost, which looks at the cost of replacing an insured property with one of similar functionality. Reproduction cost is not the same concept as replacement cost, which is the cost of replacing an asset or property and not reproducing it. For instance, multiply a $100 per square foot cost to build the kind of house you’re appraising by the 3,000 square foot total area of the house to arrive at a cost estimate of $300,000 to reproduce the structure.

Reproduction Cost

Scheduled personal property is additional coverage that extends protection beyond the typical coverage in a homeowners' insurance policy.

Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy. Scheduled personal property coverage provides three specific advantages that extend beyond the benefits of a standard insurance policy:
1.  The cost to replace the property forms the basis of the scheduled personal property policy, and depreciation is not a consideration. Unscheduled personal property refers to items that are covered by personal property coverage but have not been specifically itemized; these items are subject to the standard coverage limits. On a standard homeowners policy, coverage divides into categories including
The dwelling itself
Other structures, which include items such as sheds, fences, and the mailbox
Personal property
Loss of property use
Personal liability and medical coverage. Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy.

Scheduled Personal Property

Single entity coverage is a type of insurance policy that covers all real property in a condominium, including common areas and individual units. 

Single entity coverage is a type of insurance policy that covers all real property in a condominium, including both the common areas shared by all property owners as well as the individual units. Single entity coverage is important for owner-occupied multifamily housing because the residents of condo units cannot be asked to purchase an insurance policy covering items that are shared by other condo owners, such as an entryway or a light fixture in a hallway. Single entity coverage is a type of insurance policy that covers all real property in a condominium, including both the common areas shared by all property owners as well as the individual units. In addition to protecting property shared by all condo owners, single entity coverage also covers the property inside the individual condo units. Single entity coverage is used for condominiums (or condos), a type of residential property in which some common elements, such as the entryway or light fixtures, are used by all residents of the building, while other elements are only used by the condo unit owner.

Single Entity Coverage

A type of personal liability coverage, an umbrella insurance policy handles claims that exceed what your homeowners or auto insurance will cover.

An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's homeowners, auto, or watercraft insurance. Depending on the provider, the policyholder who wants to add an umbrella insurance policy is required to have a base insurance coverage of $150,000 to $250,000 for auto insurance and $250,000 to $300,000 for homeowners insurance. An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's homeowners, auto, or watercraft insurance. If a policyholder is sued for damages that exceed the liability limits of car insurance, homeowners insurance, or other coverage types, an umbrella policy helps pay what they owe. The premium for an umbrella insurance policy may be less expensive if the policy is purchased from the same insurer that provided the original auto, home, or watercraft insurance.

Umbrella Insurance Policy

A valuation clause is a provision in an insurance policy specifying the amount the policyholder will receive if a covered hazard event occurs. 

The valuation clause is a provision in some insurance policies that specify the amount of money the policyholder will receive from the insurance provider if a covered hazard event occurs. Another consideration of an ACV policy is the Valued Policy Law (VPL). Arkansas, California, Florida, Georgia, Kansas, Louisiana, Mississippi, Missouri, Montana, North Dakota, New Hampshire, Ohio, South Carolina, South Dakota, Tennessee, Texas and West Virginia all have valued policy laws.
Under this regulation, insurance providers must pay the full, listed face value of a policy in the event of a total loss, without consideration of the depreciated actual cash value. A market value clause refers to a part of a policy that defines the value of the covered property at a market rate, rather than actual or replacement cost. However, most stated value policies contain wording which, in the case of loss, will allow the insurer to pay the lesser of either the stated value or actual cash value. An agreed value policy will use an agreed amount provision to stipulate the value of a property being insured.

Valuation Clause

Valued Policy Law (VPL) is a statute that requires insurance companies to pay the full value of a policy to the insured in the event of a total loss.

Valued policy law (VPL) is a legal statute that requires insurance companies to pay the full value of a policy to the insured in the event of a total loss. However, this definition is being rewritten through case law and state legislation by the broad evidence rule, which states that the determination of the actual cash value of a loss should include all relevant evidence an expert would use to set the value of the property, including replacement cost less depreciation and fair market value. Valued policy law does not consider the actual cash value of the insured property at the time of the loss; instead, the law mandates total payment. Valued policy law (VPL) is a legal statute that requires insurance companies to pay the full value of a policy to the insured in the event of a total loss. A valued policy differs from an unvalued, or open, insurance policy, in which the value of the property would need to be proven subsequent to a loss through the production of invoices, estimates, claims adjusters, or other evidence.

Introduction to Valued Policy Law (VPL)

Vandalism and malicious mischief insurance is a type of insurance coverage that protects against losses sustained as a result of vandals. 

Vandalism and malicious mischief insurance is insurance coverage that protects against losses sustained as a result of vandals. If your ex comes into your home and trashes it, that’s vandalism, and it's usually covered.
If you’re not living in a dwelling, it's important to take additional precautions against vandalism.
Vandalism or malicious mischief losses are not covered if a dwelling has been vacant for over 60 consecutive days. A structure is vacant is no one is living there and it’s substantially empty of personal property necessary for normal use. Vandalism and malicious mischief can be written as an endorsement to a standard policy, such as the standard fire policy, in the event that the policy requires a separate endorsement for this type of coverage. Vandalism and malicious mischief insurance is insurance coverage that protects against losses sustained as a result of vandals. Vandalism and malicious mischief insurance is included in most basic commercial and homeowner insurance policies.

Vandalism and Malicious Mischief Insurance

Water Damage Insurance provided in most homeowners insurance policies protects against sudden and accidental water damage. 

Facts + Statistics: Homeowners and Renters Insurance

Prevent Water Damage from Plumping and Appliances

Water damage insurance is a type of protection provided in most homeowners insurance policies against sudden and accidental water damage. Toilet failures were the second-leading cause of water damage, either from the water supply line or from the toilet backing up into the house, followed by water heaters failing and causing water to enter the home. To mitigate water damage, have older homes inspected by a licensed plumber every five years, replace older water heaters, use steel-braided supply lines on washing machines, and turn off the supply lines when the machine is not in use. There are two common types of plumbing supply system failures: frozen pipes, which can burst due to a buildup in water pressure caused by freezing water in an adjacent section of the pipe, and when the supply system material fails and results in a leaking or bursting pipe. As water damage insurance does not cover negligence, many types of water damage to real property can and should be avoided through proper maintenance.

Water Damage Insurance

Water damage legal liability insurance provides financial protection to a person or business that causes water damage to the property of another.

Water damage legal liability insurance refers to a type of policy that provides financial protection to a person or business that unintentionally causes water damage to the property of another. For individuals, water damage legal liability insurance and the cost for it is typically included in renter, homeowners, and condo insurance policies.
Water damage legal liability insurance is a type of policy for individuals or businesses that protects them, if they cause unintentional water damage to someone else's property or possessions.
This type of insurance is generally part of a homeowners or renter's insurance policy. If the owners of a second-floor condo unit experienced a water heater explosion, for example, and the water leaked into any units on the first floor, water damage legal liability insurance would protect the owners of the second-floor condo by providing the money to repair the damage to the first-floor units. Water damage legal liability insurance refers to a type of policy that provides financial protection to a person or business that unintentionally causes water damage to the property of another. Homeowners insurance policies generally include water damage legal liability, either as part of the personal liability coverage or in a separate rider.

Water Damage Legal Liability Insurance

A water exclusion clause in a homeowner's or renter's insurance policy denies coverage for certain water-related claims.

Background on: Hurricane and windstorm deductibles

Facts + Statistics: Homeowners and renters insurance

A water exclusion clause is a restriction in homeowners and renter's insurance policies that denies coverage for some water-related claims. The expensive nature of water damage, and the prevalence of it—in 2018, water damage and freezing represented 23.8% of all insurance losses﻿﻿﻿—gives homeowners and renters reasons to find alternative coverage options.
Average losses to homeowners due to water damage and freezing in 2018, according to the Insurance Information Institute. Typically, water exclusion clauses include floods due to external causes; sewage or water main failure/backups; tsunamis; standing or groundwater.
Homeowners policies typically do protect against water damage from a sudden mishap inside the home, like a burst pipe or overflowing toilet. A water exclusion clause is a restriction in homeowners and renter's insurance policies that denies coverage for some water-related claims. Events that are likely to fall under a water exclusion clause include damage caused by flood, tsunamis, standing water, groundwater, and drain or sewage backups.

Water Exclusion Clause

Windstorm insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by gusty events.

Flood Insurance Costs: Understanding your policy terms

Windstorm insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by gales, winds, hail, and other gusty hazards. Immediately after a windstorm, a windstorm insurance policyholder should:
1.  Record the storm date and save news articles about the storm as proof.
2.  Assess and record all damage that they see from the ground with pictures and/or video.
3.  Have at least two reputable contractors inspect the property and provide written estimates for damages.
4.  Contact the claims department of their insurance carrier, provide all the information they have gathered, and request a visit from a claims adjuster.
5.  Ask one of the contractors to be present during the insurance adjuster's inspection to ensure a fair assessment.
6. Windstorm insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by gusty events such as tornadoes, hurricanes and gales. Windstorm insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by gales, winds, hail, and other gusty hazards. A subset of storm insurance, windstorm insurance is usually offered in the form of a rider on a standard casualty insurance policy through the extended coverage endorsement.

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