Homeowners Insurance Glossary
Radioactive Contamination Insurance.
Coverage, which may be added to a Property policy to cover certain risks where there is neither a nuclear reactor nor nuclear fuel on the premises but which, might occasionally be exposed to contamination damage from other material on the insured's premises. Liability losses caused by nuclear reaction and radioactive contamination are excluded from most insurance contracts and are usually covered under policies issued by pools created for this purpose. See also Mutual Atomic Energy Pool. (PR)
Rain Insurance.
A type of coverage, which protects an insured against losses caused by cancellation of an outdoor event due to rain. The policy usually covers loss of income. The rain, hail, snow or sleet usually must exceed a certain amount and must occur during a stated period of time, either before or during the event. (PR)
Rating, Schedule.
See Schedule Rating Plan. (PR, LA)
Recipient Location.
A location, which accepts the insured's products or services. One of the four types of dependent properties for which Business Income coverage may be written. (PR)
Recording Agent.
The name by which a policy-writing agent is known in the Property Insurance business. (PR)
Red-Lining.
Discriminating unfairly against a risk solely because off its location. An example would be refusing to insure a risk because the building is located in a depressed area or location. Sometimes these areas are referred to as blackout areas. (PR)
Removal.
Removing property to protect it from loss. Most personal and commercial property forms cover damage to property at another location when it has been removed from the premises to protect it from loss by a peril insured against. (PR)
Rent Insurance.
See Rental Value Insurance. (PR)
Rental Value Insurance.
A form of Property Insurance that provides indemnity (1) for the loss of the rental value of property when the owner or tenant is deprived of the use of the property because it has been damaged by an insured peril, or (2) for the loss by the owner-landlord of the rent that would have been payable by a tenant of the property, under the terms of the lease or by statute, when he is relieved of liability for the payment of rent during a period of untenantability due to an insured peril. (PR)
Replacement Cost.
The cost of replacing property without a reduction for depreciation. By this method of determining value, damages for a claim would be the amount needed to replace the property using new materials. Contrast with Actual Cash Value. (PR)
Replacement Cost Insurance.
Insurance that provides that loss will be paid on a replacement cost basis. See also Replacement Cost. (PR)
Reporting Form.
The form for a periodic report to an insurer by an insured that covers the fluctuating values of stocks of merchandise, furniture and fixtures, and improvements and betterments. Premiums are adjusted annually, based on the average values insured during the policy period. An insured with fluctuating inventories might use this form. (PR)
Residence Premises.
In homeowners insurance, the dwelling, other structures and grounds, or that part of any other building where the named insured lives. (PR, LA)
Riot.
A peril covered by the extended coverage (EC) or direct reference in some policies. It is violent action by two or more people. State laws vary as to how many people it takes to constitute a riot. (PR)
Risk.
The physical units of property insured or the physical units of property at risk. Contrast with Peril and Hazard. (PR)
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