This coverage, found in homeowners forms, provides payment for extra expenses made necessary by the insured’s inability to reside in the insured dwelling because of a covered loss—for example, restaurant meals and hotel bills. The amount payable is the difference between normal household expenses and the increase.

Part of the homeowners insurance policy, additional living expense reimburses the policyholder for the extra cost of living elsewhere while the house is being restored from an insured peril. It is also known as “Loss of Use” coverage. (See Homeowners Insurance).

Perils added to a fire policy, such as damage by storm, tempest or flood.

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Also called special perils they add to the scope of a standard fire policy. They include: 1. Dry perils: aircraft; explosion; riot and civil commotion; malicious damage; earthquake. 2. Wet perils: storm; burst pipes; flood; sprinkler leakage. 3. Miscellaneous perils: impact; subsidence; subterranean fire; spontaneous combustion.

Extra premium charged either because the insurance is more hazardous than normal or because additional benefits are added to the policy.

Provisions in addition to the regular insuring and benefit provisions, and to the standard uniform provisions, which define and limit the coverage. Also, often called general provisions.

The reserve held in excess of the unearned premium reserve, to allow for any expectation that the unearned premium reserve will be insufficient to cover the outstanding risk in respect of the unearned expenses.