Property Insurance Ch 1

An event that results in a loss. It includes an accident, but it is a broader def b/c it includes continuous or repeated exposure to harmful conditions that results in property damage.
ex: Mold, fungus, or wet rot that results from the accidental discharge or overflow of water or steam within a plumbing, heating, or air conditioning system.

The termination of an insurance policy before its expiration date. Either the insured or the insurer may cancel the policy.

The cancellation of a policy for which a refund is made of the unearned premium calculated in proportion to the time the policy was in force. When the insurer cancels the policy, the unearned premium is refunded to the insured on a pro rata basis

The cancellation of a policy for which the premium refund is calculated according to a short rate table whereby the insurer retains a portion of the unearned premium. When the insured requests cancellation of the policy, the unearned premium is refunded to the insured on a short rate basis

The cancellation of a policy on the date the policy becomes effective. This type of cancellation requires the full return of the paid premium

The termination of an insurance policy after its expiration date by the insurer

A cause of a potential loss.
Ex: Fire, lightning, wind, hail, etc.

The cause that sets other causes in motion when multiple causes combine to produce loss or damage. The cause without which a given result would have not occurred

Ex: A fire that causes a subsequent explosion or smoke damage; without the fire there would not have been a subsequent explosion or smoke damage

A fire that produces a visible spark, flame, or glow & leaves the area in which it was intended to be kept.
Ex: A spark jumps from a fireplace and ignites a nearby area rug

A condition or defect that exists within property itself that causes the property to spoil, break, become defective, or destroy itself. Insurance policies typically exclude inherent vice. (fine art & antiques)
Ex: The quality of materials used in a painting allows the painting to fade or lose luster with time, deterioration of imperfectly cued skins, spontaneous fermentation or combustion of improperly dried grain

A document that temporarily provides insurance coverage until a policy is issued. The binder specifies the perils covered, the amount of coverage, the effective date of the coverage, and the name of the insurer providing the coverage. The binder does not state the premium amount

The process whereby a disputed claim is decided by a neutral third party. Arbitration is sometimes used to resolve differences between the insured and insurer

The right of the insurer to take possession of damaged property after the loss to the property has been paid. The salvage belongs to the insurer

A written amendment attached to the policy by the insurer to broaden or restrict coverage, or to further define certain policy provisions. Once attached, the endorsement takes precedence over the original provisions of the policy. An endorsement may also be referred to as a rider.
Ex: Inflation Guard Endorsement to a Homeowners policy

A situation where there are  causes resulting in a loss and 1 of the causes is excluded while the other cause is not excluded. Unless the policy specifies otherwise, the loss is covered.
Example: A policy that excludes earth movement will still pay a loss due to fire or explosion that ensues directly from the earth movement.