Homeowners Insurance Glossary
PILR.
See Property Insurance Loss Register. (PR)
PML.
See Probable Maximum Loss. (PR)
Peak Season Endorsement.
An endorsement, which provides increased amounts of coverage on inventories during peak seasons, beginning and ending on dates specified in the endorsement. (PR)
Per Diem Business Interruption.
A type of Business Interruption policy which provides a stated amount to be paid for each day that the business is interrupted due to an insured peril. (PR)
Percent Subject.
See Amount Subject. (PR)
Period of Restoration.
The period during which Business Income coverage applies. It begins on the date direct physical loss occurs and interrupts business operations, and ends on the date that the damaged property should be repaired, rebuilt or replaced with reasonable speed. (PR)
Personal Property.
Any property of an insured other than real property. Homeowner policies protect the personal property of family members, and commercial forms are used to protect many types of business personal property of an insured. (PR)
Personal Property Floater.
A Broad Form policy covering all personal property worldwide, including at the insured's home. Similar coverage is available by endorsement as part of the "Special" Homeowners policy form. (PR)
Physical Damage.
A generic term indicating actual damage to property. (PR)
Plate Glass Insurance Policy.
See Comprehensive Glass Insurance Policy and Glass Coverage Form. (PR)
Pluvious Insurance.
Another name for Rain Insurance. (PR)
Power Interruption Insurance.
This coverage indemnifies the insured in the event of loss due to the interruption of power supplied by a public utility and caused by any of the perils insured against. (PR)
Power Plant Insurance.
This policy insures electricity-generating plants against loss caused by certain specified perils. (PR)
Premium Adjustment Form.
A form wherein a deposit premium is charged at the beginning of the policy period, periodic reports of exposures are made by the insured during the policy term or at the end of it, and premiums are adjusted as reports are received or at the end of the policy period. (PR)
Premium and Dispersion Credit Plan.
A method of allowing certain credits to large commercial property risks with two or more locations. These credits are based on the fact that there are several locations, which are dispersed and, therefore, represent a reduced hazard. Efficiency of management in loss prevention, plus expense savings in handling large amounts of insurance under one policy are also considered. (PR)
Pressure Vessel.
Any type of vessel or container, which is designed to hold liquids or gases under pressure. (PR)
Pro Rata Distribution Clause.
A provision used in writing of blanket form policies under certain circumstances to divide the amount of insurance carried in the policy among several subjects of insurance, in the proportion that the value of each subject of insurance bears to the total of all items covered under the policy. Withdrawn from use in most states in 1978. (PR)
Pro Rata Liability Rule.
See Limit of Liability Rule. (PR)
Probable Maximum Loss (PML).
The maximum amount of loss that one would expect under ordinary circumstances, such as fire departments responding, sprinklers working, etc. Contrast with Amount Subject. (PR)
Profits and Commissions Insurance.
A kind of insurance with which a salesman or a sales agent whose income is tied to profits or commissions on certain property can insure against loss of income due to the destruction of the property. (PR)
Property Insurance.
Insurance that indemnifies a person with an interest in physical property for its loss or the loss of its income producing abilities. This definition encompasses all lines of insurance written by Property and Inland Marine insurers and can also include certain kinds of insurance written by Casualty insurers, e.g., Burglary and Plate Glass coverage's. (PR)
Property Insurance Loss Register (PILR).
A computerized record of all fire losses over $500 established by the American Insurance Association (AIA). The PILR enables companies to determine undisclosed duplicate insurance coverage and patterns of losses on submitted risks. (PR)
Protected Risk.
A property risk, which is within the geographical area protected by a fire department. (PR)
Protection Class.
The grading of fire protection, determined by the Grading Schedule of Cities and Towns, for a given area. This designation is used for all fire rating except for dwellings, in which case the Dwelling Class is used. (PR)
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