Insurance Lingo E

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

1. EARNED PREMIUM
   The premium paid for the period of time a policy is in effect. Insurance premiums are payable in advance, but the insurance company does not fully earn them until the policy period expires.
2. EARTHQUAKE INSURANCE
   Covers a building and its contents in the event an earthquake causes damage to the property, but includes a large percentage deductible on each. Earthquakes are not covered by standard homeowners policies.
3. EXTENDED REPLACEMENT COST COVERAGE
   Additional, broader protection above the policy limit to replace a damaged home, generally 120 percent or 125 percent. Most homeowner policy limits track inflation in building costs. Extended replacement cost policies protect the policyholder after a major disaster when the high demand for building contractors and materials can push up the normal cost of reconstruction.