Allied Lines

Type of property insurance that may be purchased with a fire insurance policy.

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A term that has been adopted to refer to the lines of insurance that are allied with property insurance, these coverage provide protection against perils traditionally written by fire insurance policies such as sprinkler leakage, water damage and earthquake.

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Allied lines coverage is a form of insurance that is normally written with fire insurance. It covers additional perils not usually covered by the basic fire insurance policy. Examples of allied lines insurance include wind and hail insurance, vandalism and malicious mischief insurance, data processing insurance, demolition insurance, earthquake insurance, water damage insurance (but not flood), sprinkler leakage insurance, radioactive contamination insurance, and standing timber insurance. (See Extended Coverage).

 

 

Allied Lines (Fire and Extended Coverage)

Property Insurance against perils which are ‘allied’ to Fire Insurance in that they all cause relatively infrequent losses, are rated similarly to Fire Insurance, and often are covered through one or more endorsements to a Fire Insurance Policy. One such endorsement, the extended coverage endorsement, provides protection against wind, hall, falling aircraft, riot and civil commotion, vehicles striking the insured property, explosion (except boiler explosion), and smoke. Other allied lines include earthquakes, sprinkler leakage and business interruption Insurance.

Allied perils

Group of perils commonly added to a standard fire policy. They are otherwise called additional perils, defined perils or special perils. They embrace dry perils (aircraft, explosion, riot, etc.), wet perils (storm, flood, burst pipes, etc;) and miscellaneous perils (impact, subsidence, etc).

Allocated benefits

Insurance policy provision in a group contract in which specific hospital and medical benefits such as x-rays, dressings, and drugs will be paid as shown in a schedule with a maximum amount payable for all such services.

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Payments in some health insurance policies for specified hospital services (x-rays, drugs, dressings, etc.) up to a maximum amount.

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A provision under which certain expenses usually miscellaneous hospital and medical charges such as X-ray, dressings, drugs etc. will be paid at a rate for each as scheduled in the provision. Usually, there is also a maximum total that will be paid for all such expenses.