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Insurance Terms

Automobile Liability Insurance - Coverage if an insured is legally liable for bodily injury or property damage caused by an automobile.

Broker-Agent - Independent insurance salesperson who represents particular insurers but also might function as a broker by searching the entire insurance market to place an applicant's coverage to maximize protection and minimize cost. This person is licensed as an agent and a broker.

Hazard - A circumstance that increases the likelihood or probable severity of a loss. For example, the storing of explosives in a home basement is a hazard that increases the probability of an explosion.

 Hurricane Deductible - Amount you must pay out-of-pocket before hurricane insurance will kick in. Many insurers in hurricane-prone states are selling homeowners insurance policies with percentage deductibles for storm damage, instead of the traditional dollar deductibles used for claims such as fire and theft. Percentage deductibles vary from one percent of a home's insured value to 15 percent, depending on many factors that differ by state and insurer.

 Insuring Agreements

Part of an insurance policy that states the coverage of the contract.

 Insurable Interest - Interest in property such that loss or destruction of the property could cause a financial loss

Liability Insurance

Paid on behalf of the policyholder for certain types of injury to others.

 Loss

A value reduction in 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 Payable Clause

A policy condition that enables an insured to direct the company to pay any loss that may be due to a third party.

 Loss of Use Insurance

Compensation for loss caused because the policyholder has lost the use of his property.

 Mortgage Clause

A clause in an insurance policy that makes a claim jointly payable to the policy holder and the party that holds a mortgage on the property.

 Named Insured

The individual or organization with whom an insurance contract is made and who is specifically named as a Named Insured in the policy declarations.  Additional individuals or organizations can also be added as named insureds.

 Non-Renewal

A policy that the insurer does not continue after its expiration date.

 Occurrence

An accident or loss, including continuous or repeated exposure to substantially the same general harmful conditions, that result in bodily injury or property damage.

 Ordinance or Law Form

This coverage provides for the cost associated with the enforcement of any ordinance or law regulating the construction, repair or demolition of a building or structure.

 Partial Loss

A loss that does not completely destroy the insured property.

 Peril

The cause of a possible accident, loss, or claim.

 Personal Liability Coverage

Coverage for you or a resident family member found legally responsible for damage to the property of another person or injury to another person.  Reference the liability limits stated on your current Declarations Page.

 Policy

A formal written contract of insurance.

 Policyholder

The person(s) whose name is stated on an insurance policy in exchange for premium.

 Premises

The building insured or containing the insured property.  Depending on policy conditions, it may also include an adjacent area.

 Premium

The amount paid for a contract of insurance.

 Property Damage

Physical injury to, destruction of, or loss of use of tangible property.

 Property Insurance

First party insurance of real and personal property against physical loss or damage.

 Protection

Coverage afforded by an insurance contract.

 Real Property

The earth and all attached land and buildings, also known as real estate.

 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 Cost

Coverage for replacing property with new material; depreciation is not taken into consideration.

 Residence Employee

An employee of an insured whose duties are related to the maintenance or use of the insured residence premises.

 Residence Premises

Principal residence of the named insured.

 Scheduled Property

Listing specific personal property for a stated insured value.  This is usually considered for valuable items that are subject to limited coverage.

 Tenants Policy

A form of homeowner policy sold to person(s) who rent their living quarters.

 Total Loss

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

 Underwriting

A process that evaluates an application 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.

Pelican Insurance Agency, LLC Boat Insurance, Car Insurance, Motorcycle Insurance, Recreational Vehicle Insurance, health & life insurance and homeowners & renters insurance.