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- A -

ACTUAL CASH VALUE (Applies to Texas policies) - Actual Cash Value is the present-day value of property measured in cash and is based on replacement cost with a deduction for depreciation resulting from physical wear and tear and obsolescence. The average house will depreciate in value about 1% per year to a maximum of about 40%. Many older houses are not worth what it would cost to rebuild them.

ADDITIONAL INSURED/ADDITIONAL INTEREST - Some person, other than the original named insured, who is entitled to protection under a policy either by virtue of the wording of the basic policy or because the policy has been modified to protect such interest.

ALL PERILS DEDUCTIBLE - A certain dollar amount beyond which insurance protection begins for the specific event causing a loss, such as fire, windstorm, or accidental death.

AUTO LIENHOLDER (Loss Payable Clause Included) - A lienholder is a party that has a charge upon personal property for the satisfaction of some debt or duty or the right to detain the property of another until a claim against that person has been satisfied. The "Loss Payable Clause", which is included, will state the Loss Payable Provisions applicable only if the lienholder is named, and no other Automobile loss payable endorsement is attached to the policy. It will provide information based upon what will or will not be covered in regards to a loss or cancellation. The Loss Payable Clause is usually printed on the back of the Lienholder's declarations page. The exceptions are the ECE states. They use endorsement number PP 03 05 except for North Carolina and they use NC 0305. Texas uses Form 528A which is Loss Payable Clause Modified.

- B -

BODILY INJURY - The legal obligation that stems from the injury or death of another person. Coverage amounts can be either in split limits (ie - 50/100, 100/300 etc) or in single limits (500). For split limits, the first limit indicates the maximum amount (in thousands of dollars) that can be paid in any one accident to any one per person for injury or death and the second limit indicates the maximum amount (in thousands of dollars) that can be paid in any one accident for all persons for injury or death. For single limits, the limit indicates the maximum amount (in thousands of dollars) that can be paid in total, whether it's per person or per accident.

BODILY INJURY/PROPERTY DAMAGE - The legal obligation that stems from the injury or death of another person, or liability due to damage to another person's property. Coverage amounts are in split limits (ie - 50/100/25, 100/300/50 etc). The first limit indicates the maximum amount (in thousands of dollars) that can be paid in any one accident to any one per person for injury or death. The second limit indicates the maximum amount (in thousands of dollars) that can be paid in any one accident for all persons for injury or death. The third limit indicates the maximum amount (in thousands of dollars) that can be paid for damages to property of others in any one accident.

- C -

CAMPER ENDORSEMENT - Camper units are normally mounted on a pick-up truck and equipped with cooking, dining and plumbing facilities.

COLLISION COVERAGE - Auto insurance that covers physical damage to your vehicle (less any deductible limit you have selected) when it hits another car or object.

COMPREHENSIVE COVERAGE - This means having a wide scope, including many things. It does not mean including everything. Thus, a comprehensive liability policy is not an all-risk liability policy; there are a number of exclusions. However, it does provide far more protection than a scheduled policy (less any deductible limit you have selected). Often referred to as "Comp."

COVERED DRIVERS - When an insured is listed in the household and is not excluded, they will be covered in the event of an accident.

- D -

DEDUCTIBLE - A certain dollar amount beyond which insurance protection begins. The insured assumes the loss up to the deductible limit and the insurer pays the remainder, up to the policy limit.

DEDUCTIBLE CLAUSE - Payment for loss to covered property less the Deductible amount shown in the Declarations. The deductible shown applies separately to each loss.

DEDUCTIBLE CLAUSE 1 (Applies to Texas Only)
  • HO-A Policy: Applies to windstorm, hail and Tropical Cyclone losses.

  • HO-B Policy: Applies to windstorm, hail and Tropical Cyclone losses.

  • TFHP (Texas Family Homeowners Policy) Policy: Applies to Wind and Hail losses.


  • DEDUCTIBLE CLAUSE 2 (Applies to Texas Only)
  • HO-A Policy: Applies to Other than Windstorm, hail and Tropical Cyclone losses.

  • HO-B Policy: Applies to Other than Windstorm, hail and Tropical Cyclone losses.

  • TFHP (Texas Family Homeowners Policy) Policy: Applies to Tropical Cyclone


  • DEDUCTIBLE CLAUSE 3 (Applies to Texas Only)
  • TFHP (Texas Family Homeowners Policy) Policy: Applies to Other than Wind, Hail and Tropical Cyclone.


  • DWELLING - Property structure covered by the policy.

    - E -

    EFFECTIVE DATE - The effective date used determines what data is to be displayed for viewing. Data will be provided for the effective date entered on the inquiry screen by the user.

    EXCESS DWELLING COVERAGE (Farmers Insurance Company only) - Special Only. The excess dwelling coverage endorsement provides excess dwelling coverage under Coverage A-Dwelling subject to a maximum of 125% of the coverage limit. This coverage can be added to the Special Homeowners package policy. This endorsement does not extend to any other coverage. Excess dwelling coverage is built into the Protector Plus Homeowners Package and included in the basic premium.

    EXCLUDED DRIVERS - Coverage will not be provided to a driver who is excluded from the household. An excluded driver does not have permission to operate the vehicles listed in the household.

    EXTENDED REPLACEMENT COST (Farmers Insurance Company only) - Special Only. The Extended Replacement Cost endorsement provides extended replacement cost under Coverage A-Dwelling subject to a maximum of 125% of the coverage limit. This endorsement does not extend to any other coverage. Extended Replacement Cost is built into the Protector Plus Homeowners Package and included in the basic premium.

    - G -

    GUARANTEED REPLACEMENT COST - Guaranteed Replacement Cost on Buildings Endorsement provides full replacement cost on the Dwelling an Appurtenant (separate) Structure regardless of the coverage limit shown on the declaration page. Guaranteed Replacement Cost on Building is an optional coverage to Broad Form/Special Form Homeowner policies written in the preferred companies only.

    - L -

    LENDERS LOSS PAYABLE (Applies to Fire Policies only)
        438BFUNS: Lenders Loss Payable Clause included. Applies
         to Arizona, California, Nevada, Oregon, and Washington.

        All Other States: The word "mortgagee" includes trustee. If a
         mortgagee is named in this policy, any loss payable under
         Coverage A or B will be paid to the mortgagee and the
         insured, as interests appear. If more than one mortgagee is
         names, the order of payment will be the same as the order of
         precedence of the mortgagees.


    LESSOR (Additional Insured Included) - The person or firm that grants a lease and who is the registered owner of the vehicle.

    LIMITS OF LIABILITY - The maximum sums of money in which an insurance company agrees to pay in the event of a loss covered by the policy.

    LOSS ASSESSMENT - We cover insureds share of any assessment charged by the association of owners against all property owners in the common interest development up to policy limits.

    LOSS OF USE - If the dwelling becomes unfit to live in and the insured is forced to vacate the dwelling, we cover the necessary increase in living expense actually incurred to maintain the normal standard of living up to policy limits.

    LOSS OF RENT - We will cover the loss of rental income during the shortest time needed to
    (a) repair or replace the damaged property
    (b) permanently relocate the rental premises, but in no event for more than 12 months.
    Loss of rents due to a cancellation of a lease or agreement is not covered.


    - M -

    MARKET VALUE (Applies to Texas policies) - Market Value is the purchase price actually paid or the price considered to be obtainable on the open market. The amount will vary widely depending on property location, overall desirability of the area, and the general economy. Land value is not included in the total amount of insurance coverage.

    MAILING ADDRESS - Address other than the property address used for billing notices, policy change notices and cancellations.

    MODIFIED REPLACEMENT COST (Special Form Homeowners only) - This provision provides for loss settlement to the dwelling on a Repair Cost, Actual Cash Value, or Market Value rather than a replacement cost basis. Policy limits must be based on the market value of the dwelling.
    This provision is designed for the older well-maintained home, which does not qualify for coverage under current replacement cost rules.


    MORTGAGEE - The party loaning money toward the purchase of personal property, usually a bank or other lending institution.

    MORTGAGEE CLAUSE - A clause making the proceeds payable to a named mortgagee, as interest may appear, and stating the terms of the contract between the insurer and the mortgagee.

    - N -

    NAMED INSURED - 1) A policyholder, the person to whom the policy is issued; any person or corporation, or any member thereof, specifically mentioned as insured in a policy, as distinguished from others, who, though unnamed, are protected under certain circumstances. 2) In life insurance: this is the person named on the face page of the policy whose life is covered by the basic contract. (Other persons may be covered by riders attached to the basic contract.)

    - P -

    PERIL - The specific event causing a loss, such as fire, windstorm or accidental death.
  •   A "named peril" policy covers losses from perils specifically
           named in the policy.

  •   An "Accidental Direct Physical Loss" (ADPL) policy covers
           losses from all perils except those it excludes.


  • PERSONAL PROPERTY - Personal property owned or used by an insured and located at the residence premises covered up to policy limits.

    POLICY - The written contract effecting insurance, or the certificate thereof, by whatever named called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.

    POLICYHOLDER - The person in possession of an insurance policy.

    PREMIUM - An amount owed by the insured to the insurance company in exchange for insurance coverage.

    PROPERTY INSURANCE - Insurance written to cover the loss, by damage or theft, to specified objects of value owned, possessed, or held by the insured. Sometimes called physical damage in case of automobile insurance.

    PROPERTY DAMAGE - The legal obligation that stems from liability due to damage to another person's property. The limit indicates the maximum amount(in thousands of dollars) that can be paid in any one accident.

    - R -

    REGISTERED OWNER - The owner of the vehicle or a person or organization whose name appears on the registration for the vehicle. Can be someone who requests to be shown as the Registered Owner/Named Insured on the title for the vehicle and who's name appears on the registration.

    REPLACEMENT COST - The cost of replacing property without deduction for depreciation.

    REPLACEMENT COST DWELLING - Replacement Cost coverage based on a maximum percentage of Dwelling Coverage A. This endorsement does not extend to any other coverage.

    REPLACEMENT COST VALUE (Applies to Texas policies) - Replacement Cost Value is the cost to restore a damaged building to original condition without reduction for depreciation. Acceptable coverage amount is from 80% to 100% of the replacement cost.

    - S -

    SAVE PRINT LOGO FOR LISTBILL - This Print Logo has to be saved to your PC to properly display a saved Listbill web page.
     How to save this logo?
     Right click on the Farmers Logo image. Select "Save Picture As..."  and store it to a folder in your PC.
     Where to save this logo?
     This image should be saved with the same name (farmers_logo.gif)  in the same folder you intend to save the Listbill web pages.

    - T -

    TEMPORARY DUAL COVERAGE - Optional coverage for an existing vehicle that has been replaced by a newly acquired vehicle. Coverage terminates automatically at the end of a state specific limited period of time (usually 30, 60 or 90 days).

    TOWING AND ROAD SERVICE - We will pay for reasonable and necessary towing and labor costs incurred because of disablement of your insured car. The labor must be performed at the place of disablement.

    TOWING WITH LIMITS (Applies to Texas Policies) - Provides the same coverage as Towing and Road Service, but limits the coverage to either $40, $80 or $120.

    TRAILER ENDORSEMENT - Trailers are towed by a private passenger vehicle and are not self-propelled. The two types of trailers are travel and utility.
  •   Utility trailers are designed for general use and include farm       wagons and single axle trailers.

  •   Travel trailers are towed and are equipped for use as living       quarters.


  • 438BFUNS: (Applies to Fire Policies only) Lenders Loss Payable Clause included - Applies to Arizona, California, Nevada, Oregon, and Washington. (Refer to "Lenders Loss Payable" in this glossary for information on other states.)

    - V -

    VIN SEARCH  Choose option "SEARCH BY VEHICLE IDENTIFICATION NUMBER"
  • If vehicle year is prior to 1981, enter the last 3 numeric digits of the VIN or Complete VIN (maximum 17) and also enter State (Code or Name) and then choose CONTINUE

  • If vehicle year is after 1981, enter either last 9-alpha/numeric characters of VIN or Complete VIN (maximum 17) and also enter State (Code or Name) and then choose CONTINUE.

  • If there is a complete match the policy information screen will be displayed.

  • If there are duplicates, the VIN's with the vehicle year/make/model, insured last name and policy number with state code will be displayed. Select the correct vehicle and enter to display the policy information screen.

  • After the policy information screen has been displayed and the VIN is not the one you are looking for, more than likely a vehicle change has been processed. Enter the policy number again and use an effective date of 1 day prior to the "VEHICLE INCEPTION DATE" that is listed. This should then bring you to the correct vehicle.

  • Last 5 digits will always be numeric for cars and light trucks.


  • - W -

    WIND & HAIL DEDUCTIBLE A certain dollar amount beyond which insurance protection begins for the specific events causing a loss from Windstorm or Hailstorm.