Homeowners Insurance Glossary
Lag Coverage
See Endorsement Extending Period of Indemnity. (PR)
Leader Location.
A location, which attracts customers to the insured's business. One of the four types of dependent properties for which Business Income coverage may be written. (PR)
Leasehold Interest Coverage Form.
Commercial property coverage form used to insure an insured tenant's interest in a favorable lease under which the rent paid is less than the rental value of alternative premises. Pays the difference between rent paid and the rental value for remainder of the lease if the lease is canceled because of property damage caused by a peril insured against. (PR)
Leasehold Interest Insurance.
A form of Property Insurance that provides protection against the loss of a favorable lease if it should be terminated as a result of damage to the property by a peril covered by the contract. A leasehold value is determined by finding the difference between the rental value of the property at current rates and the rent payable under the terms of the lease. This amount is multiplied times the remaining term of the lease. (PR)
Liberalization Clause.
A clause in Property Insurance contracts, which provide that if policy or endorsement forms are broadened by legislation or ruling from rating authorities and no additional premium is required, then all existing similar policies will be construed to include the broadened coverage. (PR)
Limit of Liability Rule.
A prescribed procedure for allocating Property Insurance losses among insurers that provides protection on a given piece of property. It is called the "pro rata liability rule" in a Standard Fire policy. (PR)
Limited Theft Coverage Endorsement.
This form may be attached to a Dwelling Policy to provide theft coverage for a named insured who is not an owner occupant. (PR)
Line Card.
A record kept by a Property insurer of the insurance sold to any one particular insured. (PR)
Livestock Coverage Form.
A commercial property form which may be attached to a Farm Coverage Part to insure livestock. This form replaced various inland marine forms, which were commonly used to insure farm property and livestock. (PR)
Livestock Insurance.
A named perils contract that provides a prescribed lump sum payment to an insured upon the death of any animal covered by the policy. (PR)
Livestock Mortality Insurance.
The equivalent of Life Insurance for livestock. (PR)
Livestock Transit Insurance.
Insurance against accidents causing death or crippling on shipments of livestock while in transit by rail, truck, or other similar means of transportation. (PR)
Loss Assessment Charge.
An insured's share of a loss assessment for property damage or liability, which is charged, by a corporation or association of property owners. Homeowner's policies provide some coverage for loss assessments charged against the insured as owner or tenant of a residence premises. (PR, LA)
Loss Clause.
See Automatic Reinstatement Clause. (PR)
Loss of Use Insurance.
Coverage to compensate an insured for the loss of use of his property if it cannot be used because of a peril covered by the policy. See also Additional Living Expenses. (PR)
Loss Payable Clause.
A provision in Property Insurance contracts that authorizes payment to persons other than the insured to the extent that they have an insurable interest in the property. This clause may be used when there is a lien or loan on the property being insured, and it protects the lender. (PR)
Loss Prevention Engineer.
See Engineer. (PR, LA)
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