CISR Personal Residential key terms

A financial stake in the property or exposure to loss from an event that would cause genuine economic harm, required at the time of loss for a property claim to be payable.

The concept that insurance restores an insured to roughly the same financial position held before a loss, no better and no worse, and serves as the basis for most property settlements.

A settlement method that pays replacement cost minus depreciation of the damaged item, reflecting its used value just before the loss occurred.

The amount needed to repair or rebuild damaged property with new materials of like kind and quality at current prices, without deducting for depreciation.

The reduction in an item's value caused by age, wear and tear, or obsolescence, subtracted from replacement cost when calculating actual cash value settlements.

A property provision requiring the insured to carry coverage equal to a stated percentage of the property's value; failing that, claims are reduced proportionally.

The relationship between the limit of insurance purchased and the full replacement or market value of the insured property, used to judge whether coverage is adequate.

The amount of a covered loss the insured must absorb before the insurer pays, applied per occurrence or per policy period as the form specifies.

A single event, or a continuous or repeated exposure to the same harmful conditions, that results in bodily injury or property damage during the policy period.

A specific cause of loss, such as fire, windstorm, or theft, that may trigger coverage when it is either named in the policy or not excluded.

A coverage approach in which only the causes of loss specifically listed in the policy are covered, with everything else excluded by default.

A coverage approach that insures all risks of direct physical loss except those the policy explicitly excludes, shifting the burden of proof to the insurer.

A policy provision that removes specified causes of loss, property types, or exposures from coverage, returning them to the insured's own responsibility.

A written amendment attached to a policy that adds, removes, or alters coverage terms without rewriting the entire base form.

The page identifying the insured, the location, the policy period, the coverage limits, and the deductible that together frame the contract.

The maximum amount an insurer will pay for a specified coverage under the policy, sometimes subject to sublimits for particular property categories.

A cap on payment for a particular category of property or loss that is lower than the overall coverage limit on the policy.

Dollar caps applied to specific classes of personal property, such as money or jewelry, that restrict recovery even when the overall coverage limit is higher.

The homeowners coverage that insures the residence structure itself, including attached structures such as an attached garage, against covered losses.

Coverage for structures on the residence premises that are not attached to the dwelling, such as a detached garage, fence, or storage shed.

Coverage for the insured's household contents and personal belongings, both on and off the residence premises, subject to policy limits and special sublimits.

Coverage that pays for increased living expenses or fair rental value when a covered loss makes the residence premises uninhabitable.

Coverage that pays sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence.

No-fault coverage that pays reasonable medical expenses for non-residents injured on the insured premises or by the insured's activities, regardless of legal liability.

Payments for the extra cost of temporary housing and meals above normal living costs while the dwelling is being repaired after a covered loss.

Extension of personal property protection to belongings temporarily away from the residence, such as items in a hotel room or a student's dormitory.

The one-, two-, three-, or four-family dwelling where the insured resides, including grounds and structures, as described in the declarations.

Any person or entity granted coverage under the policy, typically the named insured, resident relatives, and others meeting the policy's definitional tests.

The person or persons specifically identified on the declarations page as the policyholder, holding rights to cancel, change, or receive notices.

The policyholder obligations that arise following a loss, such as prompt notice, proof of loss, and protecting property from further damage.

A formal, often sworn statement submitted by the insured detailing the circumstances, amount, and supporting evidence of a claimed loss.

The insured's obligation to take temporary steps after a loss to protect covered property from additional damage, with costs typically reimbursed.

The insurer's right, after paying a claim, to pursue recovery from the party legally responsible for the loss, up to the amount paid.

The maximum total an insurer will pay for all covered losses during a policy period, regardless of how many separate occurrences arise.

An optional endorsement that pays to rebuild beyond the dwelling limit by a stated percentage, useful when construction costs rise sharply.

An endorsement that automatically increases the dwelling limit at renewal or periodically to keep pace with rising construction costs.

Coverage for the extra cost of rebuilding to current building codes, which basic policies typically limit or exclude.

Legal responsibility for harm caused to another person or their property, which the personal liability coverage of a homeowners policy is designed to address.