Homeowners Insurance Glossary
DIC.
See Difference in Conditions. (PR)
Data Processing Coverage.
A special form providing protection for loss due to the breakdown of data processing systems. It also includes coverage for the additional expense of putting the system back into operation. (PR)
Dean Schedule.
A schedule rating system for Property Insurance on commercial buildings. It is named for its author, Alfred F. Dean. This system is currently being replaced by a rating plan developed by the Insurance Services Office. Same as Analytic System. (PR)
Debris Removal Clause.
A provision that may be included in a Property policy contract to provide the insured with indemnification for expenditures incurred in the removal of debris produced by the occurrence of an insured peril. Ordinarily a Property policy covers only the direct damage caused by an insured peril. (PR)
Declaration.
A term used in insurance other than Life or Health to denote that portion of the contract in which is stated such information as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured. (PR, LA)
Demolition Clause.
A provision that excludes liability for costs incurred in demolishing undamaged property, often necessitated by building ordinances requiring that structures must be demolished after a certain degree of damage has been sustained. (PR)
Demolition Insurance.
Insurance written to cover the cost of demolition excluded by a demolition clause. It may be endorsed to Property Insurance for an additional premium. See also Demolition Clause. (PR)
Dependent Properties.
Properties, which an insured business does not own, operate or control, but upon which the insured's income depends. Examples include major suppliers or customers. Previously known as "contingent" properties. (PR)
Depreciation Insurance.
See Replacement Cost Insurance. (PR)
Difference in Conditions (DIC).
A separate contract that expands or supplements insurance on property written on a named perils basis so as to cover on an all-risk basis, subject to certain exclusions. (PR)
Direct Loss (or Damage).
A loss, which is a direct consequence of a particular peril. Fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss. Contrast with Indirect Loss and Consequential Loss. (PR)
Direct Writer.
An insurer whose distribution mechanism is either the direct selling system or the exclusive agency system. (PR, LA)
Direct Written Premium.
The premiums collected, without any allowance for premiums ceded to reinsurers. (PR, LA)
Disappearing Deductible.
A type of deductible that gradually disappears as the loss gets larger. If the deductible is $50, the insurer will pay 111% of that part of the loss which is in excess of $50. The deductible on losses between $50 and $500 is gradually reduced by this system, and if the loss reaches $500, the full amount is covered. (PR)
Distribution Clause.
See Pro Rata Distribution Clause. (PR)
Divisible Contract Clause.
A clause providing that a violation of the conditions of the policy at one insured location will not void the coverage at other locations. (PR)
Dwelling Forms.
A policy form designed specifically to cover a dwelling building and the personal property in it plus other additional coverage's. There are several forms available; depending on what coverage is to be provided. (PR)
Dynamo Clause.
See Electrical Exemption Clause. (PR)
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