Insurance Glossary

Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.

The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

The process of selection and classification of risk by the degree of insurability

Property without people occupying or living within it. As opposed to vacant property, unoccupied property may hold furnishings

The malicious and often random destruction or spoilage of another person’s property.

A separate, higher deductible provision that applies to loss caused by wind or hail. Often, the deductible is expressed as a percentage of the value of the property or, in a homeowners policy, as a percentage of the dwelling limit, rather than as a flat dollar amount. In some Atlantic and Gulf coast states, insurers have filed a variation of this deductible hat applies an even higher percentage deductible in the event of loss from a "named storm," such as a hurricane.

This exclusion removes coverage for wind and hail losses.

To insure, underwrite, or accept an application for insurance.