Actual Cash Value (ACV)
The cost of replacing your property with something of like kind and quality minus an allowance for depreciation and a deductible (if applicable).
Additional Living Expense
The cost incurred when an insured loss requires that you live outside of your home while repairs are made.
Adjuster
A person who evaluates the facts of your claim and makes recommendations regarding settlement.
All Risk Coverage
Coverage that protects you for all losses except those specifically excluded in your policy.
Broad Form
Insurance coverage that protects you from all risks to the building and named perils only to the contents.
Broker
See Independent Broker.
Burglary Insurance
Insurance covering property damage and financial losses resulting from property theft from within either the household premises or automobile and caused by someone entering by force. The theft must be reported to the authorities.
Canadian Loss Experience Automobile Rating (CLEAR)
The CLEAR rating system groups automobiles based on their claims records, including repairs, injury claims and theft history.
Cancellation
The termination of an insurance contract by either you or your insurer in accordance with your contract provisions and provincial laws.
Certificate of Insurance
Your legal evidence of insurance coverage, stating such details as the policy period, the limitations of coverage, deductibles, premiums, etc.
Claim
Your notification to us of a loss from an insured peril or of a possible personal liability exposure from a happening or event.
Claim Department
A department in our company that investigates and evaluates the above "claim."
Claim Report
A report to us from an adjuster detailing the investigation and evaluation of the "claim."
Combination Furnace
A furnace which can burn more than one type of fuel.
Comprehensive
For property, this term is synonymous with 'All Risk Coverage' (see definition under that heading). For automobile insurance, comprehensive coverage refers to insurance against physical damage that can occur to your vehicle from causes other than a collision (e.g. fire, theft, vandalism, hail and lightning).
Coverages
That section of your policy document that explains what types of property and losses are covered by your insurance.
Criminal Code Conviction
Some criminal Code convictions that relate to the ownership, use or operation of an automobile include:
- driving while your licence is under suspension
- racing
- careless driving
- impaired driving
- failure or refusal to submit to a breath or blood test
- failure to stop for a police officer, resulting in an extended suspension of licence (for example, three years)
Deductible
Most insurance claims are subject to a deductible: the prearranged amount that you agree to pay toward the cost of any single claim. Increasing your deductible decreases your insurance premiums.
Depreciation
The actual or accounting recognition of the decrease in value of your hard assets over a period of time.
Driving Record
The history of your driving experience including any accidents and convictions. It is a factor in calculating the rate you are paying for your automobile insurance.
Dwelling Building
The premises where you reside.
Effective Date
The date at which your insurance policy goes into force.
Endorsement
A written agreement attached to your insurance policy that documents changes made to your insurance policy. This attachment takes precedence over the provisions in your original policy.
Exclusions
A list of the losses not covered. Knowing what your policy excludes helps you determine whether you have adequate coverage.
Fraudulent Claim
The submission of a claim through the act of wilful deception and dishonesty carried out with a view to securing some advantage, profit, etc. to which one is not entitled, at the expense of another.
Homeowner's Policy
A single policy designed to cover the various risks of owning a home.
Indemnity
Compensation for your loss. This may be a monetary value or replacement of the loss. Indemnity will help restore you to the financial position you were in immediately prior to the loss.
Independent Insurance Broker
A person who searches the marketplace on your behalf to find the insurance coverage that's best for you.
Insurer
The Insurance Company or the individual who has agreed to supply the indemnity to an insured against loss by certain perils.
Jewellery Coverage
Coverage on your jewellery or precious stones on an all-risk basis at any location. Each item must be specifically identified in the policy. This extends the jewellery coverage under your homeowner's policy.
Lapse
The termination of an insurance policy at the renewal date.
Liability Limit
The limit to which you are protected should you be sued as a result of your personal actions and/or your ownership or use of dwellings and land. This limit also applies to the cost of any legal representation you may require, subject to the limitations, conditions and exclusions as stated within your policy of insurance.
Loss of Use
Loss-of-use insurance protects against losses incurred while you are unable to use your property. It includes additional living expense, business interruption and rental reimbursement.
Major Conviction
Offences under any act governing highway traffic related to the ownership, use and operation of an automobile. Examples include:
- failing to report an accident
- failing, in the event of an accident, to give your name and licence number to police or anyone else entitled to that information
- improper passing of school buses
- improper passing/speeding in a school or playground zone
- any of the above-listed offences committed outside Canada
Material Fact
Any information used in your insurance application that would have changed your eligibility for coverage, price of coverage or conditions for acceptance.
Minor Conviction
Examples of minor convictions include:
- driving off roadway - including shoulder/sidewalk/median - any type
- following too closely (including tailgating)
- failing to wear a seat belt
- disobeying legal traffic signs, with the exception of parking signs
- speeding - any type, except when listed as major or criminal code
- making an unsafe move
- failing to yield - any type
Misrepresentation
Incorrect statement of material fact.
Named Perils
The specific perils against which the particular insurance policy is issued.
Optional Coverages
Coverages not included in your basic insurance package and for which an additional premium may be charged.
Outbuildings
Other private buildings located on the same property as your residence. For example, a pool house.
Personal Effects Insurance
Coverage outside your home for personal items that you normally carry with you or wear. This coverage applies worldwide.
Personal Property
Property-e.g. tables, chairs, desks, clothing, jewellery, etc.--in which a person has an interest and which is personal, moveable, or separable from real property.
Policy
A written document that serves as your proof of an insurance contract. The document contains the relevant facts about the policyholder, the insurance coverage, the insured and the insurer.
Policyholder
The person who owns an individual insurance policy.
Policy Term
The period of duration in which your insurance policy is in force. Usually one year.
Premium
The cost of insurance.
Principal Dwelling
A dwelling occupied year round and not vacant for more than 30 days.
Private Passenger Automobile
A vehicle that is operated by an individual or family for personal use and is not used for any commercial purposes, such as a taxi or a delivery vehicle.
Renewal
A renewal is an offer to provide insurance for a new term. It ensures no gaps occur in your insurance coverage.
Replacement Cost
The amount required to replace your damaged property with one of like kind and quality without any reduction for depreciation.
Replacement Cost on Contents
Refers to an obligation to replace damaged property on a 'new for old' basis, if repairing the damaged property is not practical.
Risk
Refers to the person or object to be covered by insurance.
Scheduled Articles
An addition to a homeowner's policy to provide extra coverage of listed items such as jewellery, furs, stamp and coin collections, bicycles and cameras.
Seasonal Dwelling
Generally, a dwelling occupied by the insured for a portion of the year only. For a dwelling periodically used throughout the year, see "secondary dwelling."
Secondary Dwelling
Generally, a dwelling that is not your primary dwelling but that you never leave unoccupied for more than 60 consecutive days at any one time in the course of any one year.
Special Limits
Refers to limits on your coverage for items such as jewellery, furs, and coin collections. Be sure to review your policy's special limits to make certain that your property is adequately covered. Higher limits may be purchase for items requiring them.
Standard Homeowner's
A named-perils homeowner's policy which can be issued in cases where you might not qualify for regular homeowner's insurance. Some coverages, limits and features are reduced, changed or deleted from the regular homeowner's package.
Third Party Liability
Unintentional acts affecting the wellbeing of others or their property that we can be held legally responsible for.
Underwriting
The process of reviewing, accepting or rejecting insurance risks. Accepted risks are categorized so that the appropriate rate can be charged.
Voluntary Medical Payments
A limited payment made at the request of the named insured for the medical needs of another person without the need to prove legal responsibility.
Voluntary Property Damage
A limited payment made at the request of the named insured for repair/replacement of another person's property without the need to prove legal responsibility.
