The insured’s portion of the total amount owed to a homeowners association or other group made up of property owners due to property damage. Certain homeowners insurance policies may offer coverage for this type of charge.

Insurance responding to property or liability losses of a property owners association that are not covered by the association’s master policy. Assessments are made to unit owners, and loss assessment coverage provides coverage for those expenses.

A risk management technique whereby a situation or activity that may result in a loss for a firm is avoided or abandoned.

The profits that are lost and the expenses that continue when a business has to suspend or reduce its operation because assets are damaged destroyed or taken.

To analyze the case of loss and to find out whether the loss was preventable, or took place because of negligence or carelessness of the insured, or whether the loss arose owing to poor maintenance of housekeeping or due to larger issues like a downturn in the local economy or country or social unrest etc.

A stipulation in a Property insurance policy which states that after a partial loss covered by the policy has been paid, the original limit of the policy will be automatically reinstated. Same as “Automatic Reinstatement Clause.”

In retrospective rating, factor applied to incurred losses to compensate the Insurer for claims investigation and settlement services.

An amount intended to offset the larger-than-average losses most smaller risks have as compared to other risks in the same classification.
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Flat amount included in the premium for some small Insurance policies, to offset the greater- than-average loss experience that most small insured are thought to experience, compared to all other insured in a given classification.

This is a ‘Commercial’ total loss and subject to any policy provision, a constructive total loss arises where the subject matter of an insurance is reasonably abandoned to the insurer by the insured on account of its actual total loss appearing unavoidable or because it could not be preserved from actual total loss without an expenditure that would exceed its value. For example, an old automobile might suffer damage which could be repaired, but the cost of repairs would be more than the actual cash value of the automobile. Marine Insurance Act, 1963 vide Sec.60(1) provides that there is CTL when the subject matter is reasonably abandoned because either (a) actual total loss appear unavoidable, or (b) to prevent actual total loss requires expenditure exceeding the saved value. Sec. 60(2) provides that there is a CTL (i) Where the insured is deprived of the possession of ship or goods by a peril insured against, and (a) it is unlikely that he can recover the ship or goods as the case may be or (b) the cost of recovering the ship or goods would exceed their value when recovered. (ii) in the case of damage to a ship where she is so damaged by a peril insured against that the costy of repairing the damage would exceed the value of the ship when repaired (iii) in the case of damage to goods, where the cost of repairing the damage and forwarding the goods to their destination would exceed their value on arrival.