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Mobile Home Insurance Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

	Act of God
		An accident or event that is the result of natural causes such as floods, earthquakes, tornadoes or lightning.
	Actual Cash Value
		An amount equal to the cost of lost or damaged property less depreciation.
	Additional Living Expense
		Any necessary increase in living expenses incurred, when damage to or loss of one's home forces the insured to maintain temporary residence elsewhere. Examples of such expenses include hotel accommodations, restaurant meals and cost of using a laundromat.
	Applicant
		An individual who fills out and signs a written application for insurance.
	Appraisal
		A survey by a Claims Representative or Claims Appraiser estimating the amount of damage to property and the cost to repair it.
	Arbitration Clause
		A provision in an insurance policy which provides a procedure for resolving disputes between the insured and the insurer, typically about claim settlements. A typical provision might be that if the insurer and insured cannot agree on an appropriate claim settlement, each will appoint an appraiser, and a neutral umpire will also be selected. A decision by any two of the three establishes the settlement amount and binds both parties to it.
	Authorized Servicer
		The technician assigned by a home protection plan to perform repair or replacement services on covered equipment if it breaks down.

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	Breakdown
		The failure of equipment covered in a home protection plan to perform the function it was designed for under normal circumstances.
	Building Code Upgrade
		Coverage to bring the house up to local building code folowing a covered claim.
	Business Personal Property
		The furniture, fixtures, equipment, machinery, merchandise, materials and all other personal property owned by the insured and used in the insured's business.

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	Cancellation
		Termination of an insurance contract before its expiration date by either the insurance company or the policyholder.
	Catastrophe
		An unexpected, severe disaster that causes a significant loss.
	Civil Commotion
		An uprising of a large number of people, often resulting in damage to property.
	Claim
		A demand for payment under an insurance contract for the estimated or actual amount of loss.
	Conditions
		Provisions that set forth the rights, duties and responsibilities of the parties to an insurance contract. Conditions may be found anywhere in the contract.
	Condo Association Coverage
		A form of property insurance designed to cover the joint insurance needs of members of a condo association who collectively own property.

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	Damages
		A sum of money that one party is legally obligated to pay to another party as compensation for injury or other loss.
	Declarations
		The section of an insurance policy that provides detailed information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage and applicable premiums. This information is also referred to as a Declaration Page.
	Deductible
		An amount that the policyholder has agreed to pay on each claim.
	Depreciation (depreciate)
		A decrease in the value of property over time.
	Direct Loss (or Damage)
		A loss which is a direct consequence of a particular peril. In the case of a fire, fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss.
	Dwelling Coverage
		A section of a homeowners insurance policy that covers a house and attached structures against fire, theft, wind and other perils.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

	Earth Movement
		A peril including landslide, mud flow, earth sinking, rising or shifting, and earthquake. Usually excluded on homeowners and commercial property policies.
	Earthquake Insurance
		Insurance that covers damage caused by an earthquake as defined in the contract.
	Effective Date
		The date the insurance policy's coverage begin.
	Endorsement
		An amendment to a policy written to cover unique items or special circumstances. An endorsement is also a change to a policy that is made during the policy's term and attached to the policy to modify the terms of the insurance contract.
	Exclusion
		Part of an insurance policy that rules out coverage of certain risks, persons, property or locations.
	Expiration Date (or Expiry Date)
		The ending date of an insurance policy.

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	Flood
		A general and temporary condition of partial or complete inundation of normally dry land areas from: overflow of inland or tidal waters, the unusual accumulation and runoff of surface waters from any source, or abnormal, flood-related erosion and undermining of shorelines. Flood also means inundation from mud flows caused by accumulations of water on or under the ground.
	Flood Insurance
		Purchased separately from your homeowners policy through a federal government Flood Insurance plan, this is coverage against damage caused by the defined peril of overflowing or rising bodies of water.
	Frame
		A type of construction. A frame building is primarily made with wood frames and joists.

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	Hazard
		Situation or condition that increases the possibility or extent of a loss.
	Homeowners Insurance Policy
		A Property and Liability Insurance contract that provides insurance against the covered perils to which a homeowner is exposed.

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	In Kind
		An expression relating to the insurer's right to replace damaged objects with new or equivalent (in kind) material, rather than pay a cash benefit.
	Increased Cost of Construction Insurance
		Insurance that covers the additional cost of reconstructing a damaged or destroyed building where ordinances require rebuilding with more expensive materials, services or techniques than originally used.
	Increased Hazard
		Property insurance policies provide that coverage shall be suspended when the hazard in a risk is increased beyond that contemplated when the insurance was written. For example, if a dwelling owner begins manufacturing dynamite in his home, the risk is extremely increased, and coverage could be denied by the insurer if there were a loss.
	Indirect Loss (or Damage)
		Loss resulting from a peril but not caused directly and immediately by that peril. For example: Loss of property due to fire is a direct loss, while the loss of rental income as the result of the fire would be an indirect loss.
	Inflation Protection
		Provides for automatic periodic increases in the amount of insurance on buildings to keep pace with inflation and the resulting increase in building replacement costs. An endorsement usually adds this coverage to a homeowners insurance policy.
	Insurance Department
		A state governmental agency that has responsibility for the enforcement of the state's insurance code. It is charged with the supervision and licensing of insurance companies and agents and the general administration of the insurance laws of the state.
	Insured
		The person or people protected by the insurance policy. Also referred to as a policyholder.
	Insurer
		The company that issues a policy to a policyholder, and promises to pay specific losses and render certain services when certain events happen.

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	Liability Insurance
		Liability Insurance pays on behalf of the insured for certain types of injury to others.
	Limit of Liability
		The maximum amount that an insurer agrees to pay in the case of loss under policy contract.
	Limited Building Code Upgrade
		Also known as Ordinance or Law Coverage Endorsement, is an endorsement added to a policy that provides coverage for demolition costs and increased construction costs required or regulated by law or ordinance.
	Loss
		Depending on the context, a reduction in the value of an insured's property caused by an insured peril; the amount sought in a claim; or the amount paid on behalf of an insured under an insurance contract.
	Loss Assessment
		A type of coverage that protects a condo unit owner if fees are assessed by a condo's board of directors for unexpected expenses due to uninsured losses, insurance deductibles, losses in excess of the limit of insurance and other factors.
	Loss of Use
		Coverage to compensate a policyholder for loss caused because the insured has lost the use of his or her covered property due to a peril.

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	Medical Coverage
		Medical coverage/payments differs from Personal Liability in two ways: 1) if someone is injured on your property, coverage is available to pay that person's necessary medical expenses-under the medical payments to others limit-whether or not you are responsible for the injury. Often the policy also pays for injuries occurring off your premises if you, a family member living with you, a residence employee in the course of their employment (while on the job) or a pet causes the injury. 2) Medical payments applies only to injury and not to property damage. This coverage does not apply to you or household residents except resident employees.
	Medical Payment
		Medical coverage/payments differs from Personal Liability in two ways: 1) if someone is injured on your property, coverage is available to pay that person's necessary medical expenses-under the medical payments to others limit-whether or not you are responsible for the injury. Often the policy also pays for injuries occurring off your premises if you, a family member living with you, a residence employee in the course of their employment (while on the job) or a pet causes the injury. 2) Medical payments applies only to injury and not to property damage. This coverage does not apply to you or household residents except resident employees.
	Mobile Home Insurance
		A special policy designed for mobile home owners or occupants, covering physical damage to the home and contents, and providing personal liability coverage when the home is used as a permanent residence.
	Mortgagee Clause
		A clause in an insurance policy that makes a claim jointly payable to the policyholder and the party that holds a mortgage on the property.
	Mortgagee
		The creditor to whom a mortgage is given and who lends money on the security of the value of the property.
	Mortgagor
		The debtor who receives money and in turn grants a mortgage on his or her property as security for a loan.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

	Named Insured
		The individual or organization with whom an insurance contract is made and who is specified as a Named Insured in the policy declarations. Additional individuals or organizations can also be added. For example, a homeowner and a mortgage lender may both be Named Insureds.
	Named Perils
		Causes of loss specifically provided for in the insurance policy.
	National Flood Insurance Program (NFIP)
		Federal program providing flood insurance for fixed property. Under a "dual" program coverage may be written directly by the NFIP or by insurance carriers whose losses may be reimbursed by the NFIP.
	Non-Renewal
		A policy that the insurer does not continue after its expiration date.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

	Occupancy
		This refers to the type or character of use of the property in question. Occupancy types include owner-occupied and tenant-occupied.
	Occurrence
		An accident or loss that results in bodily injury or property damage.
	Off Premises
		A clause in a Property Insurance contract extending coverage to losses that occur when an insured is away from home. An example would be the theft of property from your vehicle. The amount of coverage for these types of losses is often limited to a small percentage of the total coverage.
	Other Structures
		Structures, such as a garage or storage shed, which are separated from an insured dwelling by a clear space, or are connected only by a fence or utility line. Homeowners policies usually provide coverage for other structures.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

	Partial Loss
		A loss that does not completely destroy the insured property.
	Peril
		The cause of a possible accident, loss or claim.
	Personal Liability
		This protection pays for damage or injury you accidentally cause to others for which you are legally responsible for paying.
	Personal Property
		Any property of an insured other than real property. Homeowner policies can also protect the personal belongings of family members.
	Physical Damage
		A generic term indicating actual damage to property.
	Policy
		A formal written contract of insurance.
	Policyholder
		The party to whom a policy is issued who agrees to pay a premium to an insurer in exchange for the insurer's promise to provide insurance protection.
	Policy Anniversary
		Date on which an insurance policy must be reinstated or renewed to remain in force.
	Premises
		The building insured or containing the insured property. Depending on policy conditions, it may also include an adjacent area.
	Premium
		The payment, or regular periodic payments, that a policyholder makes to own an insurance policy.
	Property Damage
		Means physical injury to, destruction of, or loss of use of tangible property.
	Property Insurance
		Insurance of real and personal property against physical loss, damage or the loss of its income producing abilities.
	Protection
		Coverage afforded by an insurance contract.

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	Rate
		The cost of insurance per unit of coverage. It is used as a base for the determination of premiums.
	Real Property
		The earth and all attached land and buildings, also known as real estate.
	Recall Period
		A period of time during which one can call a service provider under a home protection plan and report that the repair failed.
	Recording Agent
		The insurance agent that is considered by the carrier to have sold the policy.
	Reinstatement
		Returning a lapsed policy to its full value after its termination as if it was never terminated.
	Renewal
		A policy issued to replace one that has expired.
	Replacement Coverage
		Coverage for replacing property with new material or items. Depreciation is not taken into consideration.
	Residence Premises
		In homeowners insurance, principal residence of the insured, including the main dwelling, other structures, grounds or part of any other building where the named insured lives.
	Riot
		A peril covered by some policies. It is violent action by two or more people. State laws vary as to how many people it takes to constitute a riot.

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	Schedule
		A list of individual items covered under one policy such as various buildings and contents.
	Scheduled Property
		Listing specific personal property for a stated insured value. This is usually considered for valuable items, such as jewelry, that would otherwise be subject to limited coverage.
	Smoke Damage
		Damage caused by the smoke from a fire.
	Stated Amount
		An agreed upon amount of insurance which is shown on the policy, and which will be paid in the event of total loss regardless of the actual value of the property.

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	Total Loss
		Loss of the entire value of property insured, or a loss entailing the payment of the full face amount of an insurance contract.

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	Underwriting
		A process that evaluates an applicant and their property against pre-established criteria for insurability to determine whether the applicant will be rejected or accepted for coverage and whether at standard or modified rates.
	Unoccupied
		Refers to property which may be furnished or have furnishings in it, but is not occupied or being lived in.
	Unscheduled Jewelry
		Limited coverage for all your household jewelry including watches, necklaces, pins, rings, etc., and other personal items. If you have a valuable collection of jewelry or an individual piece of jewelry worth more than your Unscheduled Jewelry limit, you should have it insured separately for its full worth under Scheduled Jewelry Property.
	Unscheduled Personal Property
		Provides coverage for personal property owned or used by an insured while it is anywhere in the world. Excluded classes: Animals, birds or fish, motorized vehicles (including equipment and accessories), property of boarders, property in an apartment that is rented to others off the residence property, and credit cards. For special items and unique collections such as antiques or jewelry it is advised to cover them separately.