Term
| Causes of Loss - Basic Form |
|
Definition
| Form that covers fire, lightning, explosion, windstorm, hail, smoke, aircraft vehicles, riot, civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. |
|
|
Term
| Concurrent causation doctrine |
|
Definition
| Approach that a loss is covered when caused by two or more independent, concurrent perils if only one of the perils is covered - even if the other peril or perils are clearly excluded. |
|
|
Term
| Causes of Loss - Broad Form |
|
Definition
| Form that covers basic form perils plus falling objects; weight of now, ice or sleet; water damage; and (as additional coverage) collapse caused by certain perils. |
|
|
Term
| Cause of Loss - Special Form |
|
Definition
| Form that covers "risks of direct physical loss," subject to the form's exclusions and limitations. |
|
|
Term
| Builders Risk Coverage Form |
|
Definition
| Form that covers buildings in the course of construction, including additions or alterations to existing buildings. |
|
|
Term
| Condominium Association Coverage Form |
|
Definition
| Form that covers buildings and business personal property of condominium associations. |
|
|
Term
| Condominium Commercial Unit-Owners Coverage Form |
|
Definition
| Form that covers business personal property and building property exposures of commercial (nonresidential) condominium units. |
|
|
Term
|
Definition
| Coverage for a commercial condominium unit-owner's share of any assessment made by the association against all unit owners because of physical loss to condominium property caused by a covered loss. |
|
|
Term
| Miscellaneous real property coverage |
|
Definition
| Coverage for real property (such as a storage shed or garage building) that pertains only to the named insured's condominium unit or real property that the named insured has a duty to insure according to the condominium association agreement. |
|
|
Term
| Insurance for highly protected risks |
|
Definition
| Property insurance that covers large property risks with superior loss protection characteristics; has broader coverage than most commercial property policies and usually a lower premium rate. (p. 3.24) |
|
|
Term
| Ordinance or Law Coverage endorsement |
|
Definition
| Endorsement that covers three types of losses resulting from the enforcement of building ordinances or laws: (1) the value of the undamaged portion of a building that must be demolished, (2) the cost to demolish the building’s undamaged portion and remove its debris, and (3) the increased cast to rebuild the property. (p. 3.25) |
|
|
Term
| Spoilage Coverage endorsement |
|
Definition
| Endorsement that covers damage to perishable stock due to power outages; on-premises breakdown; or contamination of the insured's refrigerating, cooling, or humidity control equipment. (p. 3.26) |
|
|
Term
| Manufacturers' Consequential Loss Assumption endorsement |
|
Definition
| Endorsement that covers reduction in value of undamaged property due to physical loss to other property. (p. 3.26) |
|
|
Term
| Brands and Labels endorsement |
|
Definition
| Endorsement that permits the insured, when the insurer takes damaged merchandise as salvage, to stamp the word "salvage" on the merchandise or to remove its brands or labels before sale. (p. 3.26) |
|
|
Term
|
Definition
| The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss. (p. 3.31) |
|
|
Term
|
Definition
| A rating approach that bases a building's property insurance rate on inspecting and evaluating that particular building. (p. 3.35) |
|
|
Term
|
Definition
| A rating approach that uses rates reflecting the average probability of loss for businesses within large groups of similar risks; the predominant method used for rating commercial properties. (pp. 3.35-3.36) |
|
|
