Money Management Glossary: Insurance Terms

Additional Living Expense Insurance

The term "Additional Living Expense Insurance" denotes an insurance product that provides coverage (under a Homeowners, Condominium and Renters policy) that reimburses costs of residing in a temporary location until the insured’s home can be repaired and made livable again.

Dwelling Coverage

The phrase "Dwelling Coverage" describes a home insurance product that provides coverage for not only the house (primary property), but also for any structures (such as garage, patio, or a screened porch) that may be attached to it.

Earthquake Insurance

Earthquake Insurance products compensate the insurers for physical property damage resulting from earthquakes.

Flood Insurance

Often mandatory for properties located in federally designated flood areas, Flood Insurance provides coverage for property loss due to the defined peril of flood. It is usually sold in conjunction with a government Flood Insurance plan.

Valuable Article Insurance

Valuable Article Insurance (a.k.a. Floater, or VAI) is an insurance product for protecting against the loss of movable property (such as jewelry, furs, etc.) regardless of its physical location. The VAI coverage "floats" with the movable property.