- An insurance policy, which is usually purchased in addition to a property insurance policy that provides coverage for disasters that are too high-risk for a standard property insurance policy.
- Insurance coverage that compensates for physical damage to a property from natural disasters such as fire or other hazards. Depending where a piece of property is located, mortgage lenders may also require flood insurance or policies covering windstorms (hurricanes) or earthquakes.
extra insurance, extraordinary coverage, peril insurance, high risk policy
Related Terms and Acronyms
- Catastrophe Hazard — Definition,
- An event, such as a hurricane or earthquake, that poses a risk of a catastrophic loss.
- Clear-Space Clause — Definition,
- A clause that requires insured property to be located a minimum distance from surrounding property.
- Concurrent Causation — Definition,
- If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
- Fire Insurance — Definition,
- Insurance that covers losses from fire damage to insured assets.
- Flood Insurance — Definition,
- An insurance policy that provides coverage for the damages resulting from flooding. Canadian homeowners are currently unable to purchase flood insurance.
- Flood Plain (flpl) — Abbreviation,
- Land that is prone to inundation.
- Hazard — Definition,
- Anything that poses a potential risk of injury or damage.
- Hazardous Activity — Definition,
- Activities that pose a high risk of injury and as such are not covered by an insurance policy.
- Homeowners Insurance — Definition,
- A policy that includes hazard coverage, covering loss or damage to property and/or assets located within, as well as coverage for personal liability and theft.
- Incurred But Not Reported (IBNR) — Acronym,
- An estimate of how much an insurance company owes to policyholders for losses that have already occurred but have not yet been reported.
- Insurance (insur) — Abbreviation,
- An arrangement where one party provides financial protection to another party for specific damages or losses.
- Peril — Definition,
- Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
- Property Insurance — Definition,
- Insurance that provides coverage for damages to property from a number of perils.
- Uninsurable Peril — Definition,
- Something that cannot be insured due to a high risk of loss.