Chapter 22: Property and Liability Insurance

Attractive Nuisance

A dangerous place, condition, or object that is particularly attractive to children, such as a swimming pool or trampoline

Coinsurance Clause

A provision requiring policyholders to insure their building for a stated percentage of its replacement value in order to receive full reimbursement for a loss

Endorsement

A written amendment to an insurance policy that reflects changes to it

Personal Property Floater

Additional insurance coverage for the insured's movable property wherever it may be located (ex.- Christmas tree)

Personal Injury Protection

Auto insurance that pays for medical, hospital, and funeral costs of the insured and his or her family and passengers, regardless of fault

Collision Coverage

Auto insurance that protects your own car against damage from accidents or vehicle overturning

Over-Insuring

Buying more insurance than is necessary, and should be avoided

Automobile Insurance

Covers costs of damage to the vehicle, its owner, and any passengers

Extended Coverage

Covers items outside the residence (car) or valuable items at the home, in storage, traveling that are not under the basic policy

Crimes

Criminal activity, such as robbery, burglary, arson, and vandalism

Hazards

Fire, water, wind, and smoke that may cause physical damage

Homeowners Insurance

Insurance that protects property owners from property and liability risks

Renters Insurance

Insurance that protects renters from property and liability risks

Liability Coverage

Insurance to protect against claims for bodily injury to another person or damage to another person's property

Exclusions

Items that homeowners insurance policies specifically will not cover

Uninvited Guest

Presumed to have permission to be on your property, such as door-to-door solicitors or delivery people

Personal Property

Protects personal possessions inside the rental property from loss due to fire, smoke, water, freezing, etc.

Comprehensive Coverage

Protects you from damage to your car from causes other than collision or vehicle overturning

Personal Liability

Protects you if someone is injured while in your rented property

Indemnification

Reimbursing cash value of loss

Guest

Someone you specifically ask to come to your house

Liability

The cost of another person's losses for injuries at your property

Replacement Value

The cost of replacing an item regardless of its actual cash (market) value