Declarations -
The section of your insurance policy that shows who is insured, what property is insured, when and where coverage is effective
and how much coverage applies. |
Direct
Loss - Loss which is the direct result of a peril (fire, tornado, etc). |
Endorsement -
Also called a rider, this is a document that is attached to your homeowner policy that modifies or changes the original
policy in some way. Endorsements can change personal property coverage from actual cash value to replacement cost, for example. |
Exclusions -
This part of your policy lists certain perils that are not covered by your policy, such as flood or earthquake. |
Extended Coverage Endorsement -
An endorsement that extends a fire policy to also cover loss by windstorm, hail, explosion, riot, strikes, civil commotion,
aircraft, vehicles and smoke. |
Flood
Insurance - Insurance designed to provide coverage for loss due to flood
or flood-related erosion. This type of insurance is administered by the Federal Insurance Administration but sold through
independent agents like McGhee Insurance Agency. |
Fraud -
A false statement intended to deceive the insurance company to part with something of value or to surrender a legal right. |
Hazard -
Something that increases the chance of loss. For instance, faulty wiring would be a hazard because it increases the chances
for loss due to fire. |
Indemnity -
A principle of insurance which provides that the insured should be restored to the approximate financial condition enjoyed
prior to a loss. |
Indirect Loss -
A loss which is the result or consequence of a direct loss. An example would be increased living expenses you must pay
to rent a place to live if your home is uninhabitable due to a direct loss. |
