Homeowners Insurance Glossary
"If" Clauses.
Clauses, which terminate coverage "if" certain conditions are created or discovered. An example is the concealment or misrepresentation provision, which states that if this is discovered, the coverage is void. Contrast with "While" Clauses. (PR)
In Kind.
An expression relating to the insurers right in many Property contracts to replace damaged objects with new or equivalent (in kind) material, rather than to pay cash benefit. (PR)
Increased Hazard.
Property Insurance policies provide that coverage shall be suspended when the hazard in a risk is increased beyond that contemplated when the insurance was written. If a dwelling owner commences manufacturing dynamite in his home, the hazard is extremely increased, and coverage could be denied by the insurer if there were a loss. (PR)
Indirect Loss (or Damage).
Loss resulting from a peril but not caused directly and immediately by that peril. For example: Loss of property due to fire is a direct loss, while the loss of rental income as the result of the fire would be an indirect loss. See also Consequential Loss. (PR)
Inflation Guard Coverage.
Coverage which provides for automatic periodic increases in the amount of insurance on buildings to keep an appropriate "limit to value" considering the effect of inflation on building replacement costs. An endorsement is usually used to add this coverage to a Homeowners Policy. On the latest commercial property forms, inflation guard coverage is an option that may be activated by an entry in the declarations. (PR)
Inherent Vice.
A fault in property that leads to its self-destruction. Insurance contracts usually exclude such damage. (PR, IM)
Inspection Bureau.
An organization created by Property and Liability insurers to investigate exposures and to establish rates. Many bureaus, which establish fire and related perils rates for Property contracts, are called "inspection bureaus." (PR, LA)
Institutional Property.
Property eligible for special treatment under package policies. Essentially these are properties occupied by sanitariums and educational, religious, charitable, government and non-profit organizations. (PR)
Insurance Information Institute (III).
The agency of the Property and Liability business designed to deal with the public relations programs of various segments of the business. (PR, LA)
Insurance Services Office (ISO).
An organization of the Property and Liability Insurance business designed to gather statistics, promulgate rates and develop policy forms. (PR, LA)
Iron Safe Clause.
A provision in a Property Insurance policy, which requires the insured to keep his records in a safe when they are not used. (PR)
|
