Property and Casualty policy
Consists of Declarations, Conditions, Insuring Agreement, Definitions, Endorsements, Exclusions and Additional Coverage.
This refers to transferring a policy from one insured to another with the insurer's permission.
These are additional coverages added to the policy limit to cover defense costs pre- and post-judgment.
This condition states that the insurance policy applies separately to each insured person.
This refers to an insurer's making a revision in the policy before the effective date which broadens the coverage without an additional premium to the insured.
Extended coverages allow the policy to cover specific types of losses that are not named as perils on the policy but may cause major expense to an insured who suffers a loss.
Actual cash value
The actual cash value method of valuation means that the company determines the replacement cost of a lost item by determining what the item would cost new, and then subtracting the amount of depreciation.
Replacement cost means the company will pay the insured the amount of money needed to buy a new item to replace the item lost in the claim.
Market value refers to how much the property (usually a home) would sell for on the open market.
Agreed value is a property policy containing a condition agreed upon by the insurer and the insured regarding the amount of insurance that represents a fair valuation of the property at the time the insurance is written.
The insurer pays amounts based on an appraisal made at the time of the contract, before the loss occurs.
A valued policy pays a specified sum not related in any way to the extent of the loss.
Standard mortgage clause
This is a basic provision of all property policies, such as policies for a house or car.
Concurrent policy coverage
Coverage under more than one policy when the policies are alike, except possibly in the amount of coverage or length of time.
Non-concurrent policy coverage
Non-concurrent policies differ in perils, conditions, limitations, etc.
Basic form, now obsolete in California.
Broad form, the applicant must be the owner of a dwelling and may also insure personal property. Dwelling and personal property are broad form perils.
Special/All Risk/Open Peril Form - The applicant must be a homeowner, and some companies may require the home be owner occupied. Dwelling is a special form/all risk peril and personal property is a broad form peril.
HO 3 with a HO 15 endorsement, also known as a comprehensive form - The applicant must be a homeowner and may choose this form for an upgrade on the personal property coverage provided by endorsement. Dwelling and personal property are special form/all risk perils.
Tenant's form (renter's insurance) - The applicant must be a tenant in a house, apartment, mobile home, etc. and not an owner of the property in whole or in part. This covers the tenant's personal property, loss of use, and liability exposures. Dwelling does not exist on this form and personal property is a broad form peril.
Condominium unit - The applicant must be a condominium unit owner and live in the property, unless a "condo rented to others" endorsement is applied. This form covers broad form perils to condominium units and the exposure of liability. Limited dwelling and personal property are broad form perils.
Older Home Coverage - A candidate for this policy might want to limit the insurance coverage to only actual cash value (ACV) or may not be able to insure the home for replacement cost because of its age or condition.
An open policy is one in which the value of the thing insured is not agreed upon but is left to be ascertained in case of loss.
A valued policy is one that expresses on its face an agreement that the thing insured shall be valued at a specified sum and that sum is what is paid at the time of loss.