Property Basics
A policy covering all property owned by the insured under a single limit of insurance.
What is All Property (or Blanket) coverage?
A market characterized by intense competition, low rates, and broader coverages.
What is a Soft Market?
A condition relating to the use of tangible property that could cause a peril to occur.
What is a Physical Hazard?
The taking of property from a custodian by one who has caused or threatened bodily harm.
What is Robbery?
A carrier that hauls its own goods or goods entrusted to them as bailees.
What is a Private Carrier?
Building improvements or alterations made at the expense of the insured who does not own the building.
What are Tenants Improvements?
This occurs when insurance applicants are largely those most likely to suffer a loss.
What is Adverse Selection?
Something within a commodity itself that causes its demise over time.
What is Inherent Vice?
Unlawful taking of property by someone entering or leaving a premises, evidenced by marks of force.
What is Burglary?
Expenses that continue during a period of business interruption.
What are Fixed Expenses?
The right of an insurer to "step into the shoes" of the party they compensated to sue a responsible third party.
What is Subrogation?
An additional rate charged over and above the standard fire rate.
What is a Loading?
A hidden defect that could not be discovered by a reasonable or customary inspection.
What is a Latent Defect?
Security that provides direct protection for individual items like safes or vaults.
What is Point Protection?
A customer whom the insured depends upon to purchase its products.
What is a Recipient Property?
Replacement or repair costs minus depreciation.
What is Actual Cash Value (ACV)?
Facts that, if known, would cause an insurer to decline a risk or charge a higher premium.
What is a Material Fact?
The lack of habitual presence of humans, even though the premises remain complete with contents.
What is Unoccupied?
The ability of a telephone line to withstand tampering.
What is Line Security?
The legal duty of a "Bailee for Hire" to take the same care of goods as a prudent owner would.
What is Ordinary Care?
A promise that certain facts are as represented and will remain so throughout the policy.
What is a Warranty?
Marginal business an insurer accepts only as a favor to a broker.
What is Accommodation Business?
Subjective characteristics of an applicant, such as dishonesty, that could cause a peril.
What is a Moral Hazard?
The time permitted after a policy expires for an insured to find and report a claim.
What is a Discovery Period?
A bill of lading used to reflect the specific amount for which a common carrier is legally liable.
What is a Standard (or Ordinary) Bill of Lading?