Additional Living Expense: The purpose of this coverage is to pay for increased expense of living while the insured’s residence is being rebuilt or repaired after damage from an insured peril. Examples are the extra cost of housing the insured’s family in a hotel, dining in restaurants, etc.
Broad Form: Can be written on dwelling and contents. Fire forms include Extended Coverage perils, plus such additional perils as falling objects, weight of ice, snow or sleet, collapse of buildings, accidental discharge, leakage or overflow of water or steam from plumbing, heating, or air conditioning systems, sudden and accidental tearing asunder, burning, bulging of appliances for heating water, freezing of plumbing, heating or air conditioning systems, and domestic appliances, glass breakage, and breakage of building glass.
Builder’s Risk Insurance: Insurance against loss resulting from damage to buildings and to materials incidental to construction, including machinery and equipment, while the buildings are under construction.
Extended Coverage: An extension of the fire policy to cover the additional perils of windstorm, hail, explosion, or riot, attending a strike, civil commotion, aircraft, vehicle and smoke.
Homeowners Policy: A policy in which Fire and extended or Broad coverage for dwelling and contents, residents’ theft insurance, additional living expense, and personal liability insurance are combined.Rents or Rental Value: Insurance against loss of the rental value of a property; protects against loss of rents resulting from an insured peril.
Replacement Cost: Insurance under which the amount payable is the current replacement cost of the property new, rather than the depreciated value. Applies only to the building items and covers loss from all insured perils.