Home Insurance Glossary L-N
Liability Insurance
Liability insurance pays on behalf of the insured for certain types of
injury to others.
Limit of Liability
The maximum amount that an insurer agrees to pay in the case of loss
under policy contract.
Loss
A value reduction in an insured's property caused by an insured peril,
the amount sought in a claim, or the amount paid on behalf of an
insured under an insurance contract.
Loss Payable Clause
A policy condition that enables an insured to direct the company to
pay any loss that may be due to a third party.
Loss of Use Insurance
Compensation for loss caused because the policyholder has lost the use
of his property.
Mobile Home Insurance
A special policy designed to meet the needs of mobile home owners or
occupants, covering physical damage to the home, contents, and
personal liability while the home is used as a permanent residence.
Mortgagee Clause
A clause in an insurance policy that makes a claim jointly payable to
the policyholder and the party that holds a mortgage on the property.
Mutual Insurance Company
A company with no capital stock that is owned and controlled by
policyholders.
Named Insured
The individual or organization with whom an insurance contract is made
and who is specifically named as a Named Insured in the policy
declarations. Additional individuals or organizations can also be
added as named insureds.
Natural and Probable Consequences
Consequences of a given act that a reasonable person could foresee.
Non-Renewal
A policy that the insurer does not continue after its expiration date.
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