LegacyTexas Insurance

A sudden and unexpected event that occurs at a specific time and place. In newer policies, it may also include loss that occurs gradually over a period of time.

The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine the amount of reimbursement for a loss.

An individual or company that has an insurable interest with the named insured. E.g. Mortgage company on a homeowners policy.

The state-licensed professional who represents the insurance company in the sale and servicing of insurance; the direct link between the insurance company and the policyholder.

An optional coverage written with property insurance policies. The amount of coverage comes from a signed statement of value. This coverage is most popular for terms of value like antique or classic vehicles and jewelry or antiques.

Organization that rates the financial stability of insurance companies doing business in the United States.

A questionnaire filled out by the agent and the prospect who is seeking insurance. The form contains information used to underwrite and rate the policy.

A property insurance endorsement that provides that the policy limits will increase a certain percentage at regular intervals, for instance, one a year. Also called Inflation Guard Endorsement.

A state-sponsored plan for providing automobile insurance to those who are uninsurable under standard auto insurance policies.

Oral or written statement that provides immediate insurance protection for a specified period. Designed to provide temporary coverage until a policy is issued or denied.

Insurance where a single amount of insurance applies to two or more items.

See Watercraft Package Policy.

Defined in most policies to included physical harm, sickness and disease, and death resulting from any of these at any time.

One of the Commercial Property coverage forms; covers buildings under construction as well as the materials, equipment, supplies and temporary structures used in the construction. Builders Risk policies normally require 100% Coinsurance (see definition of coinsurance that follows).

As defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises as evidenced by visible signs of forced entry or exit.

Package policy designed to provide broad property and casualty coverage for small business. A form of BOP offered by RLI can also cover your home business.

Termination of an insurance policy by the insured or the insurance company during the policy period.

Written form that verifies a policy has been written. Provides a summary of the coverage provided under the policy.

A condition that requires an insured to pay part of the loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.