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Property Insurance Glossary
We've compiled a glossary of common insurance terms to help you better understand your insurance coverage. If you have any
questions, please contact us.
A | B | C | D | E | F | H | I | N | O | P | R | S | T | V
Act of God
- Natural occurrence without human involvement that could not have been prevented
- Example: lightning, tornadoes
Actual Cash Value
- Also known as market value
- Represents the dollar amount you could expect to receive for the item if sold in the marketplace.
- Actual Cash Value = replacement cost minus depreciation
Additional Living Expense
- Total additional cost incurred when an insured loss requires you to live outside of your home while repairs are made
- Insurer will pay any reasonable increase in living expenses, including moving expenses, so that your household can maintain its normal standard of living
All Risks
- Insurance for losses due to a wide range of causes
- Covers all loss or damage to insured property that is the result of any "risk" that is not specifically excluded
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Broad Form
- Insurance coverage that protects you from all risks to the building and named perils only to the contents
Burglary Insurance
- Coverage for property damage and/or financial losses resulting from property theft where forced entry or exit is visible
- The act of theft must be reported to the authorities
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Claim
- Notification to the insurer for reimbursement due to a loss from an insured peril
Combination Furnace
- A certified appliance in which more than one type of fuel can be burned
Comprehensive Form
- Coverage that protects you from all risks loss to the building and contents except for those, which are specifically excluded
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Depreciation
- Reduction in value of property through use, aging, deterioration and obsolescence
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Exclusion
- Specified loss or damage for which there is no coverage under your insurance policy
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Fire and Extended Coverages
- Coverage that protects you from specific perils to the building and contents
- Seasonal dwellings and rented dwellings are commonly insured on these forms
- Perils covered in this form are:
- Fire and lightning
- Explosion
- Smoke
- Falling objects
- Impact by aircraft or land vehicles
- Riot
- Water escape, rupture or freezing
- Windstorm or hail
Floater
Fungi
- Refers to, but is not limited to, any form or type of mold, yeast, mushroom or mildew whether or not allergenic, pathogenic or toxigenic
- Any substance, vapour or gas produced by, emitted from or arising out of any fungi or spores or resultant mycotoxins, allergens or pathogens
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Heat Source
- Standard
- Hot water, steam or forced air, fuelled by natural gas, propane or oil with furnace installed on concrete floor or public utilities commission approved electric heating system
- Non-Standard
- Space heaters (any fuel), wood or coal burning stoves and furnaces, fireplace inserts, combination units and kerosene heaters
- All units must be CSA, ULC or Warnock-Hersey approved
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Indemnity
- Putting you back into the same financial position you were in immediately prior to the loss occurring
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Named Peril
- Coverage for loss or damage caused specifically by:
- Fire or lightning
- Explosion
- Smoke
- Falling object
- Impact by aircraft or land vehicle
- Riot
- Vandalism or malicious acts
- Water escape, rupture, freezing
- Windstorm or hail
- Transportation
- Theft, including damage caused by attempted theft
- Collapse of building
- Electricity
- Fuel oil escape
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Outbuildings
- Other private buildings located on the same property as your dwelling building
- Examples: pool house, shed
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Personal Property
- Articles you own, wear or use while on your premises, also known as contents
- Examples: clothing, furniture
Policy
- Written document showing you have an insurance contract
- Contains relevant facts about the policyholder, insurance coverage, and insurer
Principal Dwelling
- Dwelling that is occupied year round and is not vacant for more than 30 consecutive days
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Rented Dwelling
- Dwelling that is owned by you and rented to others for occupancy
- Insured for Fire and Extended Coverages
- Property of tenants is not covered under this insurance
Replacement Cost
- Amount required to replace your damaged property with one of like kind and quality without deduction for depreciation
Risk
- Person or object to be covered by insurance
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Scheduled Articles
- Addition to a homeowner's policy to provide extra coverage for listed items
- Examples: jewellery, furs, stamp and coin collections, bicycles, cameras
Seasonal Dwelling
- A location owned by and occupied by you for a portion of the year only
Secondary Residence
- A location owned by and occupied by you at least one day in every 60 consecutive days
Sewer Back-up/Water Coverage
- Protects you against direct loss or damage caused by water entering your dwelling as a result of accidental escape of water from a sewer, storm drain, drain, sump, septic tank, eaves trough or downspout
- OTIP offers optional endorsements for sewer back-up/water coverage
Spores
- Refers to, but is not limited to, any reproductive particle or microscopic fragment produced by, emitted from or arising out of any fungi
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Terrorism
- An ideologically motivated, unlawful act or acts
- Including but not limited to the use of violence or force or threat of violence or force committed by or on behalf of any group(s), organization(s) or government(s) for the purpose of influencing any government and/or instilling fear in the public or a section of the public
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Vacant
- All occupants have moved out with no intention of returning regardless of the presence of furnishings
- In the case of a newly constructed house, no occupant has yet taken up residence
Voluntary Medical Payments
- A limited payment that will be made, at the request of the insured, for medical needs of a person (other than the insured's) without the need to prove legal responsibility
Voluntary Property Damage
- A limited payment that will be made, at the request of the insured, for repair/replacement of property (other than the insured's) without the need to prove legal responsibility
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