Homeowners Insurance Glossary
EC.
See Extended Coverage. (PR)
Earnings Insurance.
A form of Gross Earnings Business Interruption Insurance, whose principal feature is the lack of a coinsurance clause. It is designed for small risks and the maximum amount of loss the insured can collect in any 30-day period is established when the policy is written. (PR)
Earth Movement.
A peril including landslide, mudflow, earth sinking, rising or shifting, and earthquake. Usually excluded on homeowners' and commercial property policies. (PR)
Earthquake Insurance.
Insurance covering damage caused by an earthquake as defined in the contract. (PR)
Easement.
An interest in land owned by another that entitles its holder to specific uses. (PR)
Electrical (or Electrical Apparatus) Exemption Clause.
A clause providing that damage to electrical appliances caused by artificially generated electrical currents is recoverable only if fire ensues and then only for the damage caused by the fire. (PR)
Electronic Data Processing (EDP) Coverage.
Specialized type of insurance designed to cover computer equipment, data systems, information storage media and expenses or income loss related to EDP losses. (PR)
Elevator Collision Coverage.
Coverage for damage caused by collision of an elevator without regard to fault. This includes damage to personal property, the building and the elevator itself. Liability coverage is usually provided automatically by Business Liability policies. (PR, LA)
Endorsement Extending Period of Indemnity.
An endorsement attached to Business Interruption policies, which extends coverage to the period during which a business has reopened for business but have not reached the level of business activity, which existed prior to the Business Interruption loss. (PR)
Engineer (Loss Prevention Engineer or Safety Consultant).
An insurer's staff member who is charged with the responsibility of loss prevention and who assists in the securing of underwriting and rating information. (PR, LA)
Expediting Expenses.
Expenses incurred in order to speed up repair or replacement so as to reduce the amount of loss by a peril covered in a policy. Most commonly used in connection with Business Interruption and Boiler and Machinery Insurance. Expediting expenses are generally covered if they do reduce the amount of the loss that the insurer would otherwise have to pay. (PR)
Explosion Insurance.
Insurance against loss of property due to explosion but not including explosion of steam boilers, pipes and certain pressure instruments. Most commonly written as part of the Extended Coverage Endorsement. (PR)
Extended Coverage (EC).
A common extension of property insurance beyond coverage for fire and lightning. Extended coverage adds insurance against loss by the perils of windstorm, hail, explosion, riot and riot attending a strike; aircraft damage, vehicle damage and smoke damage. At one time EC was added by endorsement. In recent years it has been included on many forms as either an optional coverage or as part of the minimum coverage's provided. (PR)
Extended Period of Indemnity.
A Business Income coverage that continues coverage for income losses for a period of time after operations have resumed. (PR)
Extra Expense Coverage Form.
A commercial property form designed to cover extra expenses incurred by a business so it can remain in operation following a property loss. See Extra Expense Insurance. (PR)
Extra Expense Insurance.
A form that provides reimbursement to the insured for the extra expenses reasonably incurred to continue the operation of a business when the described property has been damaged by a peril covered by the contract. This insurance is normally used by businesses where continuity of operation, regardless of cost, is a necessity as, for example, any business that would permanently lose customers if there were any suspension of operations. The term Additional Living Expense Insurance is defined with regard to extra expenses incurred by individuals and such coverage is a common feature of homeowner policies. (PR)
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