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Glossary
Personal Definitions
Act of God
A natural occurrence without human involvement and one that could not have been
prevented. Examples include floods, lightning, earthquakes, tornadoes and
hurricanes.
Additional Living Expense
The new expenses incurred when an insured loss requires that you live
outside of your home while repairs are made.
All Perils
This combines Collision and Comprehensive coverage.
Broad Form
Insurance coverage that protects you from all risks to the building and named
perils only to the contents.
Burglary Insurance
Covering property damage and financial losses resulting from property theft from
within either the household premises or automobile and caused by someone
entering by force. The theft must be reported to the authorities.
Canadian Loss Experience Automobile Rating (CLEAR)
The CLEAR rating system groups automobiles based on their claims records,
including repairs, injury claims and theft history. Quotes for your automobile
insurance premium can vary depending on whether or not a particular insurance
company uses CLEAR.
Comprehensive Form
Insurance coverage that protects the policyholder from all direct physical loss to the building
and contents except for those which are specifically excluded
Collision Coverage
Protects your vehicle in case of accidents that are considered
your fault, or partially at-fault. Hit and run accidents are only covered
if you purchased collision coverage. This coverage will always be subject
to a deductible.
Comprehensive Coverage
Protects your vehicle against loss due to fire, theft, vandalism, falling
objects, lightning, windstorm, hail, rising water, earthquake, explosion.
Windshield damage is one of the most common comprehensive claims. This
coverage will always be subject to a deductible, with the exception of fire and
lightning.
Deductible
A pre-agreed amount that you are responsible for before the company will make any
payments. Increasing your deductible will decrease your insurance premiums.
Depreciation
The actual or accounting recognition of the decrease in value of your hard
assets over a period of time, according to a predetermined schedule.
Family Protection Endorsement (O.P.C.F. #44)
This adds a very important coverage to your automobile
policy. This will allow your own liability limits to be used to
"top-up" an underinsured vehicle you may be involved in an accident
with. In Ontario the minimum liability limits are $200,00 and some
American States have limits as low as $50,000, if you carried a $1,000,000 limit
of liability on your vehicles this could conceivable provide you with an
additional $950,000 of insurance protection.
Loss of Use
Insurance against loss due to your inability to use your property. Loss of use
insurance includes additional living expense, business interruption and rental
reimbursement.
Major Conviction
Major convictions are the following offences under any act governing highway
traffic:
Minor Conviction
Minor convictions include the following:
Outbuildings
Other private buildings located on the same property as your residence but not
attached to the main dwelling. For
example, a pool house or garage.
Personal Property
Most commonly used personal property is property in which a person has an
interest and which is personal, moveable, or separable from real property. For
example, tables, chairs, desks, clothing, jewellery etc. All policies have
exclusions to their definitions of personal property that include all licensable
vehicles (cars, ATV's and snowmobiles) business contents, etc.
Premium
The money you pay for insurance coverage of a specified type and for a
policy term.
Principal Dwelling
Dwelling occupied year round and not vacant for more than 30 days.
Private Passenger Automobile
A vehicle that is operated by an individual or family for personal use and is
not used for any commercial purposes, such as a taxi or delivery vehicle
Reinstatement
The restoration of a lapsed or cancelled policy.
Replacement Cost
The amount required to replace your damaged property with no depreciation for
age removed.
Risk
The person or object to be covered by insurance.
Scheduled Articles
An addition to a homeowners policy to provide extra coverage of listed items.
Examples include jewellery, furs, stamp and coin collections.
Seasonal Dwelling
Generally, a dwelling occupied by the insured for a portion of the year only. If
a second dwelling that you own and use periodically is used year round see secondary
dwelling.
Secondary Dwelling
Generally, a dwelling that is not unoccupied for more than 60 consecutive days
at any one time in the course of any one year.
Serious Conviction
Serious convictions, or Criminal Code convictions, include the following:
Third Party Liability
Acts that we can be held legally responsible for that affect the well being of
others or their property.
Voluntary Medical Payments
A limited payment that will be made, at the request of the named insured, for
medical needs of a person (other than the insured) without the need to prove
legal responsibility.
Voluntary Property Damage
A limited payment that will be made, at the request of the named insured, for
repair/replacement of property (other than the insureds) without the need to
prove legal responsibility.
Actual Cash Value
The replacement or repair cost less depreciation
Bailee Broad Form Building Burglary Co-Insurance Deductible Equipment Media Named Perils Replacement Value Robbery Stock Subrogation Unoccupied Vacant
One who has temporary
custody of the property of another for a purpose other than sale
Broad form policies
cover all events except those listed in the exclusions section. Some of the
coverage advantages provided by this type of form over the lessor form Named
Perils include; theft or attempted thereat, rupture and freezing of pipes,
impact by land vehicles driven by insured or employees, collapse, extended smoke
coverage, Explosions of hot water heaters with internal working pressure
exceeding 15 pounds per square inch, but having an internal diameter of less
than 24inches, all other losses not specifically excluded.
Fixed structures pertaining to the building and located on the premises; Premises is defined as
"the entire area within the property lines and areas under adjoining
sidewalks and driveways at the locations described on the Declarations Page and
in or on vehicles within 100 meters (328 feet) of such locations.
The unlawful taking of insured property from within the premises by a person unlawfully entering or
leaving the premises as evidenced by marks of forcible entry or exit.
This clause applies separately to each item for which a co-insurance percentage is specified on the
Declaration Page and only where the total loss exceeds the lesser of 2% of the
applicable amount of insurance or $5000. The insured shall maintain insurance
co-insurance with this for on the property insured to the extent of at least the
amount produced by multiplying the actual cash value of the property by the
co-insurance percentage specified on the Declaration Page, and, failing so to
do, shall only be entitled to recover that portion of any loss that the amount
of the insurance in force at the time of loss bears to the amount of insurance
required to maintained by this clause.
The portion of an insured loss to be borne by the insured before he is entitled to recovery from
the insurer.
Generally all contents usual to the insured’s business including furniture, furnishing, fittings
fixtures, machinery, tools, utensils and appliances other than building or stock
as herein defined.
Is the materials, including diskettes, tapes and punch cards upon which data is recorded.
Coverage is limited to only these listed events. 1. Fire or lightning, 2.Explosion, 3. Impact by
Aircraft, Spacecraft or Land Vehicle 4. Riot, 5. Vandalism or Malicious Acts, 6.
Smoke, 7. Leakage from Fire Protection Equipment. 8. Windstorm or Hail.
The costs to repair, replace or rebuild the lost or damaged property without deduction for
depreciation.
The taking of insured property from a custodian by a person or persons who have 1) caused or
threatened to cause the custodian bodily harm, or 2) committed an overt unlawful
act witnessed by the custodian or 3) taken such property from a custodian who
has been killed or rendered unconscious.
Merchandise of every description usual to the insured’s business.
The insurer, upon making any payment or assuming liability therefore under this form, shall be
subrogated to all rights of recovery of the Insured against others and may bring
action to enforce such rights. Notwithstanding the forgoing, all rights of
subrogation are hereby waived against any cooperation, firm, individual, or
other interest with respect to which insurance is provided by this policy
Where the premises are complete with its contents, except that such person who normally occupies the
premises is temporarily away. Coverage is suspended during the vacancy or
unoccupancy or when the building insured or containing the property insured is
shut down for more than 30 consecutive days, unless your company has made
arrangements to allow the coverage.
Property is generally deemed to be vacant when the normal occupant is absent and the contents have
been removed. Coverage is suspended during the vacancy or unoccupancy or when
the building insured or containing the property insured is shut down for more
than 30 consecutive days, unless your company has made arrangements to allow the
coverage.
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Stan
Darling Insurance Inc.
