Install
Property terms
Insuring the buildings and what is in them.
Actual cash valueA property valuation basis that pays the cost to replace damaged property minus depreciation for age and wear, not the price of a brand-new item.Actual loss sustainedA way of paying business income claims with no dollar limit: the insurer reimburses documented lost income and expenses for a stated period.Agreed valueA property policy option where insurer and insured agree on the covered value in advance, which suspends the coinsurance penalty for the agreed period.AppraisalA property policy procedure for settling a dispute over the dollar amount of a loss, using two appraisers and an umpire instead of a lawsuit.Blanket limitA single property limit applied across several buildings, locations or types of property, so the insurer pays a loss at any one up to the total.Builder's riskProperty insurance for a building under construction or renovation, covering the structure, materials and temporary works until completion or occupancy.Business incomeProperty coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations.Business owner's policy (BOP)A package policy that bundles commercial property, business income and general liability for small, lower-hazard businesses at a single premium.Causes of loss formThe part of a commercial property policy that lists which perils are covered, offered in basic, broad and special versions of increasing breadth.Civil authorityBusiness income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property.CoinsuranceA property policy condition requiring you to insure to a set percentage of value, or share the loss. (Health plans use the word for a cost share.)Commercial multiple peril (CMP)A policy bundling property and liability coverage for one business, and the annual statement line insurers use to report that package business.Commercial package policyA policy made of two or more commercial coverage parts, such as property and general liability, sharing one set of declarations and common conditions.Concurrent causationHow a property loss is treated when a covered peril and an excluded peril combine to cause it, which court rules and policy wording answer differently.Contingent business incomeCoverage for income lost when physical damage at a supplier, customer or other business you rely on, not your own premises, slows or stops your operations.Debris removalProperty coverage that pays to clear the wreckage of covered property after a covered loss, capped at a share of the loss plus a fixed extra amount.Difference in conditions (DIC)A stand-alone property policy that fills gaps in a primary policy, usually adding flood, earthquake and broader terms, often from surplus lines insurers.Equipment breakdownCoverage for sudden damage to mechanical, electrical and pressure equipment such as HVAC units and boilers, plus the spoilage and income losses that follow.Extra expenseProperty coverage for the added costs of staying open after a covered loss, such as a temporary location, rented equipment or overtime.Insurance to valueCarrying a property limit that matches the full value of what you insure, so a loss is paid in full and no coinsurance penalty applies.Named perilsProperty coverage that pays only for losses caused by perils the policy lists, such as fire, lightning and windstorm; an unlisted cause is not covered.Newly acquired propertyA property policy extension that automatically covers buildings and contents you buy or build after the policy starts, for a short time and up to a set limit.Ordinance or lawCoverage for the extra cost of rebuilding to current building codes after a covered loss, which a standard property policy excludes or sharply limits.Ordinary payrollIn a business income policy, rank-and-file wages and related costs that coverage can keep paying during a shutdown, often for a limited number of days.Period of restorationIn a business income policy, the time for which lost income is covered, from a waiting period after damage until repairs should be done or operations resume.Proof of lossA signed, sworn statement detailing a property loss and the amount claimed, which the policyholder gives the insurer within a set period after it asks.Protection classA 1-to-10 grade of a community's fire protection, from its fire department, water supply and alarm dispatch, that insurers use to rate property.Public adjusterA state-licensed professional hired by the policyholder, usually for a share of the recovery, to document, present and negotiate a property claim.Replacement costA valuation basis that pays the cost to repair or replace damaged property with like kind and quality, without deducting for depreciation.Special form (open perils)A property causes-of-loss form covering direct physical loss from any cause not specifically excluded or limited, rather than only the perils it lists.Spoilage coverageProperty coverage for perishable stock that spoils when temperature or humidity changes after equipment breakdown, refrigerant contamination or a power outage.Statement of valuesA schedule listing each insured location with its building, contents and income values and construction details, used to rate and model a property program.Tenants' improvements and bettermentsFixtures, alterations and additions a tenant pays for but cannot legally remove, insured by the tenant as its use interest under its own property policy.Utility service interruptionProperty endorsements covering loss when power, water, gas or communications to your premises are cut off by damage at an off-premises utility facility.Vacancy clauseA commercial property condition that removes or reduces coverage for certain losses once a building has been vacant more than 60 consecutive days.Valuable papers and recordsProperty coverage for the cost of replacing or restoring irreplaceable documents, plans and records, normally under a small limit.