Insuring Personal Residential Property QUESTIONS WITH
ANSWERS RATED A+
Long-Term Purchase/Contract of Sale - Ownership arrangement where the title of the property
does not pass from the seller until all the terms of the installment contract have been satisfied; a
"lease-to-own" type agreement
Named Perils - Coverage only for perils listed in a policy
Open Perils - Coverage for any reason not specifically excluded from a policy
Peril - An Event that causes or has the potential to cause damage or loss, such as a falling object.
P.I.N.E.S. - Acronym used to describe the Key Condition of Duties After Loss: Protect,
Inventory, Notify, Exhibit, Submit
Replacement Cost (RC) - Cost to replace damaged property with like kind and quality at today's
value
Seasonal Dwellings - Dwellings with continuous unoccupancy of three or more consecutive
months during any one-year period
Settlor - An individual who establishes a trust
Tangible - Real, physical property that you can touch, or property is physically present and is
made of physical materials
Trust - A relationship in which one party holds property for the benefit of another party
Trustee - An individual who manages a trust; often an attorney or accountant
Trustor - An individual who establishes a trust; trustor, settlor, creator, or grantor
Actual Cash Value (ACV) - Property's replacement cost value, less depreciation according to the
age of the property or results in a reduction in value for normal wear and tear of the property just
prior to the loss.
Beneficiary - A party that receives a trust's assets when a trustor dies.
Boarders/Roomers - Individuals who rent rooms in a dwelling occupied by other boarders and/or
the dwelling's owner; inhabitants share common spaces and kitchen facilities
ANSWERS RATED A+
Long-Term Purchase/Contract of Sale - Ownership arrangement where the title of the property
does not pass from the seller until all the terms of the installment contract have been satisfied; a
"lease-to-own" type agreement
Named Perils - Coverage only for perils listed in a policy
Open Perils - Coverage for any reason not specifically excluded from a policy
Peril - An Event that causes or has the potential to cause damage or loss, such as a falling object.
P.I.N.E.S. - Acronym used to describe the Key Condition of Duties After Loss: Protect,
Inventory, Notify, Exhibit, Submit
Replacement Cost (RC) - Cost to replace damaged property with like kind and quality at today's
value
Seasonal Dwellings - Dwellings with continuous unoccupancy of three or more consecutive
months during any one-year period
Settlor - An individual who establishes a trust
Tangible - Real, physical property that you can touch, or property is physically present and is
made of physical materials
Trust - A relationship in which one party holds property for the benefit of another party
Trustee - An individual who manages a trust; often an attorney or accountant
Trustor - An individual who establishes a trust; trustor, settlor, creator, or grantor
Actual Cash Value (ACV) - Property's replacement cost value, less depreciation according to the
age of the property or results in a reduction in value for normal wear and tear of the property just
prior to the loss.
Beneficiary - A party that receives a trust's assets when a trustor dies.
Boarders/Roomers - Individuals who rent rooms in a dwelling occupied by other boarders and/or
the dwelling's owner; inhabitants share common spaces and kitchen facilities
