A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. See Replacement cost
Extra charges covered by homeowners policies over and above the policyholder’s customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered Peril that makes the home temporarily uninhabitable.
An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.
The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all, as in the case of floods. (Flood insurance is provided by the federal government but sold mostly through the private market.) In the … Read moreAdverse Selection
See Crash parts; Generic auto parts
A form of Stop Loss reinsurance under which the reinsurer pays a portion of the claims represented by a loss ratio in excess of a specified loss ratio. For example, “20% in excess of 110%” will result in claims between 110% and 130% of premium being paid by the reinsurer. Also known as Loss Ratio Coverage.
Property insurance that is usually bought in conjunction with Fire Insurance; it includes wind, water damage, and vandalism coverage.
Facilities through which drivers can obtain auto insurance if they are unable to buy it in the regular or voluntary market. These are the most well-known type of residual auto insurance market, which exist in every state. In an assigned risk plan, all insurers selling auto insurance in the state are assigned these drivers to … Read moreAssigned Risk Plans
There are basically six different types of coverages. Some may be required by law. Others are optional. They are: Bodily injury liability, for injuries the policyholder causes to someone else. Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder’s car. Property damage liability, for damage the policyholder … Read moreAuto Insurance Policy