Timothy Cline Insurance Agency, Inc.
Homeowner Associations »
Definitions
Specific
Damages (Special Damages): Injury
to Third Party that requires compensation for loss of earnings
and medical expenses.
General Damages: Injury to Third Party that requires
compensation for pain, suffering, mental anguish, etc.
Punitive Damages: Damages to Third Party due to Gross
Negligence that may require additional compensation.
Gross Negligence: Reckless disregard or intentional
ignorance to duty that causes injury or damage to third party’s
life or property.
Bodily Injury Liability: Legal liability arising from
negligent or purposeful acts that cause injury to a third party’s
person.
Property Damage Liability: Legal liability arising from negligent
or purposeful acts that cause damage to a third party’s
property.
Medical Payments: Coverage that provides for payment
of necessary hospital bills, including medical, surgical, x-ray,
dental, ambulance, etc. In most instances, these payments are
automatically made regardless of fault.
Personal Injury Liability: Legal liability arising from mental
injury to a third party (includes slander, false arrest, slander,
invasion of privacy, etc.).
Advertising Injury Liability: Legal liability arising from
misuse of advertising ideas, infringements on copyrights, mottos,
slogans or titles, and violation of oral and written material.
Negligence: The failure to act in the manner that a
reasonable and prudent person could be expected to act, resulting
in injury or damage.
Legal Duty: The responsibility to conform to a certain
standard of conduct for the protection of others.
Additional Insured: A person or entity, other then the
Named Insured, who may be protected by some of the terms of
the policy. The additional insured may be a spouse, member
of the family, unit owner, committee member, officer, or real
estate manager.
Named Insured: The person or entity named who is protected
by the policy.
Binder: A form providing temporary proof of insurance
pending the issuance of the actual policy. It must be in writing
and is not a full contract of insurance.
Declaration Page: Usually the first page of a policy,
this page provides key information detailing the coverage of
the policy, including the named insured, location of property
insured, effective dates of policy, limits of policy, and more.
Deductible: An amount specified in the insurance policy
that the insured must pay before the policy responds to a claim.
Endorsement: This is a rider or other statement or form
that is added to an insurance policy to modify the terms or
conditions of the policy.
Exclusion: Specifically identifies a Cause of Loss or
Property that will not be covered.
Occurrence: An incident or event that triggers coverage
of an insurance policy.
Retention: See deductible.
Aggregate: The maximum limit that will be paid during
a specific period of time, normally the term of the policy.
Contractual Liability: Liability arising from a breach
of written or oral contract.
Hired and Non-Owned Auto: Vehicle used by insured for
association business. This coverage will protect the association
from suits arising from an auto involved in an accident while
on an errand for the association.
Products and Completed Operations Liability: Legal Liability arising from products sold, manufactured, handled or distributed.