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Glossary: Home Insurance

Accident - An event or occurrence which is unforeseen and unintended.

Activities of Daily Living - A list of activities, normally including mobility, dressing, bathing, toileting, transferring, and eating which are used to assess degree of impairment and determine eligibility for some types of insurance benefits.

Actual Cash Value (ACV) - The cost of replacing or restoring property at prices prevailing at the time and place of the loss, less depreciation, however caused; 2) replacement cost minus.

Arson - The willful and malicious burning of, or attempt to burn, any structure or other property, often with criminal or fraudulent intent.


  • Breaking and entering into another person's property with felonious intent.
  • It is a theft committed by breaking into or out of the premises. Evidence of breaking in, is necessary.

Burglary and Theft Insurance - Coverage against property losses due to burglary, robbery, or larceny

Claim - A request for payment of a loss which may come under the terms of an insurance contract.

Dacoity - Robbery committed by a group of persons. Standard Burglary Insurance Policy issued to both business houses and dwellings cover loss of property arising out of a dacoity.

Depreciation - A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the actual cash value of property at time of loss.

Dwelling Property 1 - Property insurance policy that insures the dwelling at actual cash value, other structures, personal property, fair rental value, and certain other coverages. Covers a limited number of perils.

Dwelling Property 2 - Property insurance policy that insures the dwelling and other structures at replacement cost. It adds additional coverages and has a greater list of covered perils than the Dwelling Property 1 policy.

Dwelling Property 3 - Property insurance policy that covers the dwelling and other structures against direct physical loss from any peril except for those perils otherwise excluded. However, personal property is covered on a named-perils basis.

Effective Date - The date on which the insurance under a policy begins.

Exclusions - Specific conditions or circumstances listed in the policy for which the policy will not provide benefit payments.

Glass Insurance. - Protection for loss of or damage to glass and its appurtenances

Gross Negligence - The intentional failure to perform a manifest duty in reckless disregard of the consequences as affecting the life or property of another.

Homeowners Policy - A package of insurance providing home owners with a broad range of property and liability coverage’s.

Joint Tenants - A form of joint property ownership with right of survivorship, i.e., in which the survivors automatically own the share of a deceased co-owner.

Named Perils - Coverage in a property policy that provides protection against loss from only the perils specifically listed in the policy rather than protection from physical loss. Examples of named perils are fire, windstorm, theft, smoke, etc


  • The cause of a loss insured against in a policy.
  • The cause of a possible loss, such as fire, windstorm, theft, explosion, or riot.

Tenants in common - A form of joint property ownership in which the owners may have unequal shares and which does not involve a right of survivorship.

Will - The legal statement of a person's wishes concerning the disposal of his or her property after death.

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