GeoVera Insurance Company

Insurance Glossary

A.M. Best Rating:
A.M. Best Company is the leading provider of ratings, news, data and financial information for the global insurance industry. The ratings issued by A.M. Best Company reflect the overall condition of an insurance company. GeoVera Insurance Company has earned the rating of A- (Excellent) for its financial strength, operating performance, and ability to meet its obligations to policyholders.

Additional Living Expense:
Additional Living Expense is coverage that compensates the insured for expenses incurred so that the household can maintain its normal standard of living if a covered loss makes that part of the residence premises where the insured resides not fit to live in.

All Risk Coverage:
Coverage of losses which result from any cause except those which are specifically excluded in the policy.

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.