Binder:
A temporary or preliminary agreement which provides insurance coverage for a specified period of time until a payment is received and a formal policy is issued.
Combined Single Limit:
This limit is the insurance carrier’s total liability under all coverages provided to the insured for a single occurrence, including all expenses, however incurred.
Coverage A:
Coverage A insures the dwelling on the residences premises shown on the declarations page including structures attached to the dwelling from covered risks or perils. The Coverage A limit is shown on the declarations page.
Deductible:
That portion of a covered loss which is borne by the insured.
Dwelling:
This is the main residential structure which is located on the property, including structures attached to the dwelling such as a garage.
Endorsements:
A provision added to an insurance policy to modify its coverage.
HO-B (Texas only):
Provides coverage for the residence premises owned and occupied by the named insured in the event of a partial or total loss due to a covered peril listed in the policy, up to the policy limits.
HO3:
Provides coverage for the residence premises owned by the named insured in the event of a partial or total loss due to a covered peril listed in the policy, up to the policy limits.
Insurance Policy:
A contract of insurance between an insurer and an insured.
Loss of Use:
Coverage that compensates the insured for the loss of use of the property if it cannot be used because of a peril covered by the policy.
Named Perils Coverage:
Coverage of losses which result from causes explicitly listed in the policy.
Other Structures:
Structures that are separated from an insured dwelling by a clear space, or are connected only by a fence or utility line.
Personal Injury:
A form of injury, either physical or psychological.
Personal Liability:
Personal Liability protects the insured and family members for liability that results from the personal activities either on or away from their residence premises.
Personal Property:
Any tangible property of an insured other than real property.
Premium:
The price of insurance coverage for a specified risk during a specified period of time.
Replacement Cost:
The cost to repair or replace an insured item without any deductions for depreciation.