Residential Insurance

Residential Insurance: Homeowners and Renters 28 Insurer — The insurance company that issues the insurance policy, and agrees to pay for losses and provide covered benefits. Material Misrepresentation — A false statement given by an applicant of any important fact that had the insurance company known the truth, it would not have insured the risk. Nonrenewal — The insurance company’s option of not renewing a policy at the end of the policy period. Premium — The price of insurance paid to the insurance company for a policy. Producer — A term used by the insurance industry to encompass agents and brokers. Quote — An estimate of the cost of insurance based on information supplied to the agent, broker or insurance company. Replacement Cost — The amount that it costs to replace lost or damaged property with new property of like kind and quality in the local market. Surplus Lines Broker — A broker that has met the additional licensing requirements established by the CDI to place coverage for clients from a surplus lines insurer. Surplus Lines Insurer— Anonadmitted insurer that does not possess a license issued by the CDI, but is legally allowed to issue policies on risks in California that are difficult to insure with licensed (admitted) insurers. These insurers are not backed by the California Insurance Guarantee Association. Such coverage can only be acquired through a surplus lines broker.