Insurance Glossary

A list of individual items or groups of items that are covered under one policy or a listing of specific benefits, charges, credits, assets or other defined items.

The technique used to protect the interior of the building when the roof cover and underlayment blow off during a storm.

Service Line coverage is an additional coverage which may be added along with equipment breakdown coverage. This coverage provides protection from "service line failures" meaning breaks, leaks, tears, ruptures, collapses, or arching to a wide range of buried lines including: water lines, electrical lines, sewer lines, steam piping, fiber optic lines, drainage lines, ground loop piping, and phone lines. Only offered on homeowners (HO3) policies.

Size of a loss. One of the criteria used in calculating premiums rates.

A special form of earth movement, covered by some homeowner insurance, referring to the sudden collapse or sinking of land into empty, underground spaces eroded by water.

The sinkhole deductible applies to any loss covered by the Sinkhole Loss Coverage endorsement.

An environment where insurance is plentiful and sold at a lower cost, also known as a buyers’ market. (See PROPERTY/CASUALTY INSURANCE CYCLE)

Insurance companies’ ability to pay the claims of policyholders. Regulations to promote solvency include minimum capital and surplus requirements, statutory accounting conventions, limits to insurance company investment and corporate activities, financial ratio tests, and financial data disclosure. (See SPREAD OF RISK)