Residential Insurance Home-Renters

State of California Department of Insurance 29 Commission — That portion of the premium paid to the agent by the insurer as compensation for his/her services. Declarations — Usually the first page of an insurance policy that contains the full legal name of your insurance company, your name and address, the policy number, effective and expiration dates, premium payable, the limits of insurance, covered property, deductibles, and any applicable lienholder information. Deductible— The amount of loss that the policyholder is responsible to pay up-front before covered benefits from the insurance company are payable. Depreciation — A decrease in value due to age, wear and tear, or obsolescence. Earned Premium — That portion of a policy’s premium payment for which the protection of the policy has been provided. Endorsement — A written agreement that changes the terms of an insurance policy by adding or subtracting coverage. Exclusion — A contractual provision in an insurance policy that denies or restricts coverage for certain perils, persons, property, or locations. Flat Cancellation — A policy cancelled as of its effective date. Usually under a flat cancellation no premium charge is made. Fraud — Dishonest and willful act of obtaining money or value under false pretenses. Hazard — Circumstances that increase the probability or severity of a potential loss. Insured — The policyholder who is entitled to covered benefits in case of an accident or loss.