Homeowners Insurance Glossary
Object.
In Boiler and Machinery Insurance, the name of the vessel insured; the object of insurance. (PR)
Occupancy.
This refers to the type or character of use of the property in question. The type of occupancy has a bearing on its desirability and also effects the rate for the policy. (PR)
Off Premises.
A clause in a Property Insurance contract extending coverage away from the premises described in the policy. The amount of coverage away from the premises is usually restricted to a percentage of the total coverage on the premises, e.g., 10%. (PR)
Omnibus Risk.
A structure housing a number of tenants engaged in a variety of businesses. (PR)
Open Policy.
An insurance contract in which the terms of the policy are not fixed at the inception nor is an expiration date specified, but limits of liability are set forth for the protection it offers. No deposit premium is required, but monthly reports are made and sent with premiums due at that time, and certificates of insurance are issued to indicate the property covered. An open policy is commonly used to cover goods in transit. (PR, IM)
Ordinary Construction.
A building in which floors are on wood joists, in which the interior finish usually conceals space where fire can spread, and which has little protection of stair shafts. (PR)
Ordinary Payroll.
A Business Interruption term meaning the entire payroll expense for all the employees of an insured except officers, executives, department managers, employees under contract, and other important employees. This payroll can be excluded or limited from Business Interruption forms, reducing the amount of insurance and insured is required to carry. (PR)
Other Structures.
Structures, such as a garage or storage shed, which are separated from an insured dwelling by a clear space, or are connected only by a fence or utility line. Dwelling and Homeowner policies provide coverage for other structures. (PR)
Outage Insurance.
A type of insurance, which covers against loss of earnings due to the failure of machinery to operate because of an insured peril causing damage to the premises. Similar to Extra Expense Insurance. (PR)
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