Homeowners Insurance Glossary
FAIR Plan.
Fair Access to Insurance Requirements. A pooling plan reinsured by the United States government that makes insurance available to those in inner city or other high risk areas who cannot obtain insurance through normal channels. Coverage's for fire and allied perils is available, with considerably high limits, after inspection of the premises. (PR)
FIA.
See Factory Insurance Association. (PR)
Factory Insurance Association (FIA).
An association of stock Property insurers established to provide insurance and engineering services for insurer writing highly protected exposures. (PR)
Factory Mutuals.
Member insurers of the Factory Mutual System, which is a group of mutual coinsurers formed to provide member insurers with insurance and engineering services. (PR)
Fair Rental Value Coverage.
Insurance that pays the loss of rental value, minus expenses which do not continue, when property rented to others or held for rental is damaged by a peril insured against. (PR)
Fallen Building Clause.
A provision in certain Property Insurance contracts which specifies that if a material part of an insured building collapses from causes other than fire or explosion, the fire coverage becomes void. (PR)
Farm Coverage Part.
One of the coverage parts available under the Commercial Package Policy program. Coverage's may be included for farm property, agricultural equipment, livestock, and farm liability. (PR, LA)
Farm Personal Property.
Scheduled or unscheduled classes of farm property, which may be covered by the Farm Property Coverage Form. It may include grain, feed, supplies, livestock, farm machines and farm vehicles. Contrast with Household Personal Property. (PR)
Farm Property Coverage Form.
A farm coverage form which may be used to cover residential dwellings, other private structures, household personal property, farm personal property, and other farm structures. (PR)
Farmowners-Ranchowners Policy.
A package policy providing Property coverage on farm dwelling buildings and contents, as well as barns, stables, and other farm outbuildings. Liability coverage is also included. It is similar to a Homeowners policy adapted to cover farm properties. (PR)
Federal Crop Insurance Corporation.
A federal government agency, which provides insurance on growing crops. (PR)
Fellow of the Society of Actuaries (FSA).
A designation, which is gained by the completion of a series of examinations, as well as other experience requirements. (PR, LA)
Fire.
Combustion, which is rapid enough to produce a flame or glow. A fire, for purposes of Property Insurance, must be "hostile," which means it is not in a place in which it is intended to be. Fires in their proper contained area are called "friendly fires" and are not covered under most basic Property Insurance policies. (PR)
Fire Department Service Clause.
A provision in a Fire Insurance policy that provides the insured with indemnification for charges he incurs due to action by a fire department to save his property. It is useful for property located outside the jurisdiction of the nearest fire department and where the call will be answered only for a fee. (PR)
Fire Legal Liability.
An insurance policy, which protects the insured against liability, incurred when his negligent actions result in the destruction of property, which is in his care, custody or control. (PR)
Fire Maps.
A visual record of the distribution of Fire Insurance written by all reporting insurers placed on sectional maps. The maps show graphically the distribution of the insured's covered properties in a given area and make it possible to avoid catastrophic losses. (PR)
Fire Marshal.
A public official responsible for the prevention and investigation of fires. The marshal and his office are usually financed by a tax on the premiums of Property insurers. (PR)
Fire Resistive Construction.
A building, which has exterior walls, floors and roof, constructed of masonry or other fire-resistive materials. (PR)
Fire Wall.
A structure (wall), which is designed to seal off fires within a building. (PR)
Fireproof.
A term used in describing building construction. It refers to buildings, which are of such construction as to be practically undamageable by fire. However, the term is a misnomer, since no building is completely undamageable by fire, and it is gradually being replaced by the words "fire resistive." (PR)
Flat Deductible.
A deductible, which is not one of the disappearing or franchise type. A specific amount deducted from each loss or claim. (PR)
Flood.
A general and temporary condition of partial or complete inundation of normally dry land areas from (1) overflow of inland or tidal waters, (2) the unusual accumulation and runoff of surface waters from any source or (3) abnormal, flood-related erosion and undermining of shorelines. Flood also means inundation from mud flows caused by accumulations of water on or under the ground, as long as the mud flow and not a landslide is the proximate cause of loss. (PR)
Flood Insurance.
A form of insurance designed to reimburse property owners from loss due to the defined peril of flood. Usually sold in connection with a government Flood Insurance plan. (PR)
Floor Plan Insurance.
A form of insurance covering merchandise held for sale by a retailer, which has been used as collateral for a loan. The lending institution, in effect, is insuring its collateral the merchandise "on the floor" of the retailer. (PR)
Following Form.
A term for a Fire or other form written exactly under the same terms and coverage's as other insurance on the same property. (PR)
Foundation Exclusion Clause.
A provision in a Fire Insurance contract, which provides that the value of the foundation is not to be included when determining the value of property at the time of a loss. (PR)
Frame.
A type of construction. A frame building is primarily made with wood frames and joists. (PR)
Friendly Fire.
See Fire. (PR)
Full Reporting Clause.
Under this clause, an insured is required to report values periodically. The clause provides for a penalty to the insured if true values are not reported. (PR)
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