Valuable Tips & Tool

General Tips & Tools

Actual Cash Value
Generally, an amount equivalent to the replacement cost of lost or damaged property at the time of the loss, less depreciation.

Additional Insured
A person or entity other than the named insured, which is specifically named in the policy who receives the coverage under the terms of the policy.

Additional Interest
A person/entity with an insurable interest in a specific property, vehicle, or watercraft, usually because that party has provided financing for the property/vehicle/watercraft.

Additional Structures
Buildings and other structure types located on the property of the primary insured dwelling that are not attached to that dwelling and are separated by clear space.

A person who investigates and handles losses on behalf of an insurance carrier.

One who solicits, negotiates or effects contracts of insurance. The term agent generally refers to one who represents an insurer. His right to exercise various functions, his authority, and his obligations and the obligations of the insurer to the agent, are subject to the terms of the agency contract with the insurer, to statutory law and to common law.

Agreed Value
Under a Chubb Masterpiece® policy, Chubb and the policyholder can agree on a value of a vehicle and lock it in for a full year. That's the exact amount the insured receives if the vehicle is stolen or totally destroyed in a covered loss.

All-risk Coverage
Coverage by an insurance contract that promises to cover losses covered by any peril except those specifically excluded in the policy.

An evaluation of property made either to help an insured ascertain the appropriate amount of insurance to be written or to determine the amount of loss to be paid.

Blanket Coverage
An insured can select a total or "blanket" amount of coverage for certain categories of items, such as jewelry, silver or fine arts, rather than having to list each item separately. There is generally a per-item limit of coverage within the blanket amount. For example, if an insured has $150,000 in blanket coverage for jewelry with a $10,000 per-item limit, the most she would receive for the total loss of one item of jewelry is $10,000.

Breakage Coverage (Valuable Articles)
Generally, a homeowners policy restricts or excludes coverage for losses resulting from breakage of valuable articles.

One who solicits, negotiates or effects contracts of insurance. The term broker generally refers to one who represents an insured.

The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company.

Central Station Monitoring System (Burglar and Fire Detection)
In a Central Station system, remote detection devices installed in houses and businesses automatically transmit alarm signals to a central office. There, trained operators monitor the system 24 hours a day, record signals and take appropriate action, such as referring signals to the police or fire authorities.

City Home
Chubb has unique policies, City Home House and City Home Contents coverages, in certain states to provide homeowners coverage for owner-occupied, one-to-three-family masonry row houses. These policies are tailored to the unique needs of these residences.

A demand for the actual or alleged amount of loss or damage under a policy.

A person making a claim under an insurance policy.

Collector Vehicle
Although this varies by carrier, Chubb typically categorizes a collector vehicle as an automobile that is at least 25 years old, is an occasional-use vehicle used for hobby/collecting purposes rather than general transportation, and is only driven by someone 25 years of age or greater.

Comprehensive Coverage
A coverage also known as Other than Collision coverage, this part of an automobile policy responds when something other than collision causes physical damage to a vehicle.

Compulsory Insurance
Any form of insurance that is required by law.

A condominium is a complex or building with common areas and facilities that are owned by its residents. Each unit owner has a separate title and the exclusive ownership of a particular unit.

A co-operative is housing unit in a complex owned by a corporation, in which the residents of the building are the stockholders. The corporation owns the title to the real estate, while the individual unit owners own stock in the corporation.

The scope of the protection provided under a contract of insurance.

Covered Loss
The occurrence of the event for which insurance pays.

Declarations page
Statements in an insurance contract that provide a summary of the risk to be insured, a description of the property or life to be insured, and the limits of insurance.

A provision in an insurance policy stating that the first given number of dollars or percentage of expense will not be paid by the insurer.

An insurance term for a building that is insured as a residence.

Effective date
The date on which the coverage of a new or renewal policy goes into effect.

Language attached to an insurance policy that changes the terms or conditions of the policy.

Excess (or Umbrella) Policy
Excess liability coverage (often called umbrella) provides an insured with an additional layer of liability coverage limits in addition to the limits provided under a homeowners or vehicle liability policy. Under Chubb Excess Liability Coverage, we also offer the option of an additional layer of Uninsured / Underinsured Motorist coverage.

Causes, conditions or property listed in the policy that are not covered, and for which no benefits are payable.

Expiration date
The date on which a policy ends.

Extended Replacement Cost
For a better understanding of Extended Replacement Cost under a Chubb Masterpiece® homeowners policy, please refer to the page about Our Home Appraisal Service.

Homeowners Policy
A type of insurance policy that provides homeowners with a broad range of property and personal liability coverages.

Inception date
The date at which a policy begins or becomes active.

Insurable Interest
Any interest in a subject of insurance or any legal relation to it of such a nature that a certain happening might cause monetary loss to the insured.

A person who meets the definition of insured under an insurance policy. This means that someone who is not named in the policy may be entitled to coverage if he fits the status or circumstances described in the policy's definition of insured.

A term referring to items that are usually stored in a bank vault and covered under a valuable articles policy. By storing valuables in a vault, the insured is generally entitled to a reduced premium.

Itemized Coverage
Coverage for items that are listed individually for an amount agreed upon when the policy is purchased. In the event of a total loss, the insured will receive the amount agreed upon.

The person to whom a lease is granted.

The person granting a lease.

Broadly, any legally enforceable obligation. The term is most commonly used to describe an obligation to pay damages.

Liability Insurance
Insurance that pays on behalf of an insured for loss arising out of his or her responsibility to others imposed by law or assumed by contract arising out of losses covered under the policy.

Loss of Use
Loss of use refers to the loss an insured incurs as a result of not being able to use his property. Homeowners and auto policies generally provide coverage for certain types of loss of use such as additional living expenses and rental car expenses.

Chubb Personal Insurance's registered brand of products offered in various parts of the world.

Medical Payments
Insurance coverage that pays medical or funeral expenses of covered persons without regard to legal liability. It is one of the standard coverages provided by homeowners and auto policies.

Named Insured
Any person or entity specially designated by name as the insured(s) in a policy as distinguished from others who, though unnamed, are covered under some circumstances.

Named Peril
Policies Named peril policies specify what causes of loss are insured against, as opposed to all-risk coverage.

Failure to use that degree of care that an ordinary person of reasonable prudence would use under the given or similar circumstances. A person may be negligent by acts or omissions or both.

No-fault Insurance
Insurance coverage that pays certain expenses arising from bodily injury for certain losses without regard to legal liability or fault. A number of states require drivers to maintain no-fault automobile insurance to cover bodily injury resulting from automobile accidents. This coverage also is known as personal injury protection (PIP) coverage.

Other Insurance
The existence of another contract covering the same interest and perils.

Other Insurance Clause
A provision found in practically every insurance policy that explains how coverage will apply in the event another policy applies to the same loss.

Other Structures Coverage on a Homeowners Policy
Generally, homeowners property coverage extends to additional structures on the premises for an amount ranging between 10-20% of the home's coverage amount.

Other Than Collision
See Comprehensive Coverage.

Payment Basis
When a Chubb homeowners policy is purchased, the insured can choose from a number of ways in which Chubb will pay in the event of a covered loss. Extended Replacement Cost and Conditional Replacement Cost are two payment bases offered at Chubb.

Cause of a possible loss.

Personal Injury Protection (PIP)
Personal injury protection (PIP) coverage applies to basic expenses for an insured in states with no-fault auto insurance.

Personal Liability Coverage
This coverage applies if a claim or suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the policy applies. The insurer pays up to the limit of liability for which the insured is liable and also provides a defense.

Physical Damage Coverage
An auto insurance term indicating coverage for physical damage to the vehicle from such perils as collision, comprehensive, fire and theft.

The total amount paid by a policyholder in exchange for the coverage promised under a policy.

Private Passenger Vehicle
Four-wheeled motor vehicles of the private passenger, station wagon or van type, designed for use on public highways and subject to motor vehicle registration.

Property Damage
Physical injury to, destruction of, or loss of use of tangible property.

The continuation in full force and effect of something that is about to expire. With an insurance policy it is made either by the issuance of a new policy or renewal receipt or certificate, to take effect upon the expiration of the old policy.

Replacement Cost
The cost of replacing property without deduction for depreciation.

The list describing individual items covered under one policy.

Single Limit
The liability limit that applies per occurrence to the total of both bodily injury and property damage liability.

Split Limits
The amounts of insurance that apply separately to bodily injury and property damage.

For insurance purposes, it is the process by which one insurance company seeks reimbursement from another company or person for a claim it has already paid.

Supplementary Payments
Amounts payable under an insurance policy in addition to the policy's stated limits of liability. Vehicle and homeowners liability policies typically provide supplementary payments for the cost of certain bonds, interest charged on judgments against the insured, loss of earnings for attendance at hearings or trials and other reasonable expenses incurred at the insurance company's request.

Total Loss
Property is considered totally lost when the cost to repair it exceeds its pre-loss value.

Umbrella Policy
See Excess Policy.

Uninsured / Underinsured Motorists (UM/UIM) Coverage
Insurance that applies when an insured is involved in an accident with a motorist who has no vehicle liability coverage or who has insufficient liability coverage to cover the loss.

Vacation Home Coverage
Chubb has a unique policy, Vacation Home Coverage in certain states to provide homeowners coverage for the more limited needs of a vacation home.

Valuable Articles
Items such as jewelry, collectibles, fine arts and rare books which can be specifically described and listed for an insured amount on a Masterpiece® Valuable Articles Coverage policy. Coverage for these items is generally restricted under a homeowners policy.

Vehicle Liability Coverage
Personal liability coverage for liability arising out of motor vehicle accidents.

Writing Company
Chubb refers to the member insurers of the Chubb Group of Insurance Companies. These are Chubb's writing companies. A writing company for a particular policy can be found on the "Issued by" line of most bills.