The definitions that follow are commonly found in insurance policies, statutes, and other insurance documents and forms.
Actual Cash Value (ACV)- The cost to replace an item of property at the time of loss, less an allowance for depreciation.
All Risk Policy– Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name.
Appraisal clause– Clause which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of loss.
Civil Remedies Provision– A provision of Florida statutes which provide that any person damaged by certain insurer practices is granted a right to sue the insurer for damages.
First-Party Claim– A claim by a policyholder, insured or beneficiary directly against the insurance company that issued the contact.
Homeowners Policy– A personal multiple line contract incorporating both property and liability coverages.
Inherent Vice– A condition or defect which exist within property from the beginning. A tendency of the property itself. An example of the inherent vice is the tendency for milk to sour.
Insurable Interest– Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exist.
Insurance– A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
Limits of Liability– The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.
Loss of Use Coverage– Under the Homeowners contract, covers the insured’s increase cost of living after loss and rental value of any portion of the dwelling which is rented out.
Material Facts– A fact, which, had the company known it, would have caused then to decline the risk or include entirely different provisions than those currently included.
Named Peril Policy– Insurance contract which insures only against perils named in the policy.
Peril– Cause of loss.
Policy– Insurance contract.
Proof of Loss– The evidence offered by the insured to prove entitlement to collect the amount claimed form the insurer. The statement, signed and sworn by the insured, setting forth the claim information required by the policy. This document may be referred to as a Sworn Statement in Proof of the Loss or as a Proof of Loss.
Proximate Cause– A fundamental doctrine n property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.
Release– A contract whereby the person executing the instrument gives up a right, claim or privilege to the person against whom it might have been demanded or enforced.
Replacement Cost– The cost to replace a damaged or destroyed item or property.
Third-Party Insurance Coverage– Those coverages under which the insured obtain protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.