Glossary - P

A loss that does not completely destroy the insured property that is covered by an insurance policy.

The cause of a possible accident, loss or claim.

The personal liability coverage in your homeowner’s insurance protects you from lawsuits resulting from bodily injury or property damage to others on your property – situations in which you are legally responsible to pay.

A personal property inventory helps to ensure you have the personal contents coverage you need. There are a number of ways to create a personal property inventory, you can always simply make a list in a notebook and save receipts and photos in a file; or, you can create an electronic record of your possessions in a computer file. However, the best way to create your personal property inventory is with photographs and videos.

The date on which an insurance policy must be reinstated to remain in force.

The party to whom a policy is issued who agrees to pay a premium to an insurer in consideration of the insurer's promise to provide insurance protection.

The building insured or containing the insured property. Depending on policy conditions, it may also include an adjacent area such as a detached garage or shed.

The amount that a policyholder agrees to pay to the insurance company for an insurance policy. Homeowners insurance premiums are generally paid annually, monthly or quarterly.

Property damage coverage helps pay for damage to your home and personal property caused by such perils as fire, lightning, windstorm or hail. The perils of flood and earthquake are not covered.