The definitions appearing in this Glossary are provided solely for general informational purposes. They are not intended to be complete descriptions of all terms, conditions and exclusions applicable to the products and services defined. As well, in the case of any inconsistency between the definitions in this Glossary and the definitions appearing in the actual policy, the definitions contained in the actual policy shall govern.

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  • Act of God

    A natural occurrence without human involvement and one that could not have been prevented. Examples include floods, lightning, earthquakes, tornadoes and hurricanes.

  • Actual Cash Value

    The replacement or repair cost less depreciation

  • Additional Living Expense

    The new expenses incurred when an insured loss requires that you live outside of your home while repairs are made.

  • All Perils

    This combines Collision and Comprehensive coverage.

  • Bailee

    One who has temporary custody of the property of another for a purpose other than sale

  • Broad Form

    Insurance coverage that protects you from all risks to the building and named perils only to the contents.

  • Broad Form (Commercial)

    Broad form policies cover all events except those listed in the exclusions section. Some of the coverage advantages provided by this type of form over the lessor form Named Perils include; theft or attempted thereat, rupture and freezing of pipes, impact by land vehicles driven by insured or employees, collapse, extended smoke coverage, Explosions of hot water heaters with internal working pressure exceeding 15 pounds per square inch, but having an internal diameter of less than 24inches, all other losses not specifically excluded.

  • Building

    Fixed structures pertaining to the building and located on the premises; Premises is defined as “the entire area within the property lines and areas under adjoining sidewalks and driveways at the locations described on the Declarations Page and in or on vehicles within 100 meters (328 feet) of such locations.

  • Burglary

    The unlawful taking of insured property from within the premises by a person unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit.

  • Burglary Insurance

    Covering property damage and financial losses resulting from property theft from within either the household premises or automobile and caused by someone entering by force. The theft must be reported to the authorities.

  • Canadian Loss Experience Automobile Rating (CLEAR)

    The CLEAR rating system groups automobiles based on their claims records, including repairs, injury claims and theft history. Quotes for your automobile insurance premium can vary depending on whether or not a particular insurance company uses CLEAR.

  • Co-Insurance

    This clause applies separately to each item for which a co-insurance percentage is specified on the Declaration Page and only where the total loss exceeds the lesser of 2% of the applicable amount of insurance or $5000. The insured shall maintain insurance co-insurance with this for on the property insured to the extent of at least the amount produced by multiplying the actual cash value of the property by the co-insurance percentage specified on the Declaration Page, and, failing so to do, shall only be entitled to recover that portion of any loss that the amount of the insurance in force at the time of loss bears to the amount of insurance required to maintained by this clause.

  • Collision Coverage

    Protects your vehicle in case of accidents that are considered your fault, or partially at-fault.  Hit and run accidents are only covered if you purchased collision coverage.  This coverage will always be subject to a deductible.

  • Comprehensive Coverage

    Protects your vehicle against loss due to fire, theft, vandalism, falling objects, lightning, windstorm, hail, rising water, earthquake, explosion.  Windshield damage is one of the most common comprehensive claims.  This coverage will always be subject to a deductible, with the exception of fire and lightning.

  • Comprehensive Form

    Insurance coverage that protects the policyholder from all direct physical loss to the building and contents except for those which are specifically excluded.

  • Deductible

    A pre-agreed amount that you are responsible for before the company will make any payments. Increasing your deductible will decrease your insurance premiums.

  • Deductible

    The portion of an insured loss to be borne by the insured before he is entitled to recovery from the insurer.

  • Depreciation

    The actual or accounting recognition of the decrease in value of your hard assets over a period of time, according to a predetermined schedule.

  • Equipment

    Generally all contents usual to the insured’s business including furniture, furnishing, fittings fixtures, machinery, tools, utensils and appliances other than building or stock as herein defined.

  • Family Protection Endorsement (O.P.C.F. #44)

    This adds a very important coverage to your automobile policy.  This will allow your own liability limits to be used to “top-up” an underinsured vehicle you may be involved in an accident with.  In Ontario the minimum liability limits are $200,00 and some American States have limits as low as $50,000, if you carried a $1,000,000 limit of liability on your vehicles this could conceivable provide you with an additional $950,000 of insurance protection.

  • Heat – Non-Standard
    • Space heaters (any fuel), wood or coal burning stoves and furnaces, fireplace inserts, combination units and kerosene heaters.
    • Wood, coal or kerosene.

    Note: All units must be CSA, ULC or Warnock-Hersey approved.  Some circumstances allow a non certified unit to be used if installed to CSA codes for a non certified unit. 

  • Heat – Standard
    • Hot water, steam or forced air, fueled by natural gas, propane or oil with furnace installed on concrete floor.
    • Public utilities commission approved electric heating system


  • Loss of Use

    Insurance against loss due to your inability to use your property. Loss of use insurance includes additional living expense, business interruption and rental reimbursement.

  • Major Conviction

    Major convictions are the following offences under any act governing highway traffic:

    • failing to report an accident
    • failing, in the event of an accident to give your name and license number to police or anyone else entitled to that information
    • improper passing of school buses
    • improper passing/speeding in a school or playground zone
    • any offence, essentially the same as the above committed outside Canada
    • Impaired
  • Media

    Is the materials, including diskettes, tapes and punch cards upon which data is recorded.

  • Minor Conviction

    Minor convictions include the following:

    • backing up – unsafe/illegal/improper any type
    • brakes – none/inadequate/improper – any type
    • crowding driver’s seat
    • door opening – illegal/obstructing traffic – any type
    • emergency vehicle – operating with no regard for safety
    • driving imprudently
    • driving off roadway – including shoulder/sidewalk/median – any type
    • flag man – disobeying
    • following too closely (including tailgating)
    • headlight/parking lights – improper/lack of use – any type
    • lack of control of vehicle – any type
    • motor-assisted bicycle – carrying passengers
    • motorcycle – operating with only an instruction permit
    • passing infraction – any type except school bus or school/playground zone
    • pedestrian crossing violation – any type
    • radar warning device in motor vehicle – if illegal in province/territory
    • railway crossing – any type
    • safety zone violation – any type
    • seat belt – failure to wear
    • sign, traffic – disobeying any legal sign except parking regulations
    • signaling offences – any type
    • slow driving – endangering others – any type
    • smokescreen device on vehicle
    • speeding – any type, except when listed as major or criminal code
    • squealing tires
    • stopping – illegal/improper – any type
    • stunting
    • tires – defective/worn – any type
    • towing – prohibited/unsafe – any type
    • traffic signals/regulating lights – any type
    • trailer – improper attachments/improper towing
    • turns – illegal/improper – any type
    • unlicensed driver – any type
    • unsafe move
    • unsafe vehicle – any type
    • wrong side of road/wrong way – any type
    • yield, failing to – any type
  • Named Perils

    Coverage is limited to only these listed events. 1. Fire or lightning, 2.Explosion, 3. Impact by Aircraft, Spacecraft or Land Vehicle 4. Riot, 5. Vandalism or Malicious Acts, 6. Smoke, 7. Leakage from Fire Protection Equipment. 8. Windstorm or Hail.

  • Outbuildings

    Other private buildings located on the same property as your residence but not attached to the main dwelling. For example, a pool house or garage.

  • Personal Property

    Most commonly used personal property is property in which a person has an interest and which is personal, moveable, or separable from real property. For example, tables, chairs, desks, clothing, jewellery etc.  All policies have exclusions to their definitions of personal property that include all licensable vehicles (cars, ATV’s and snowmobiles) business contents, etc.

  • Premium

    The money you pay for insurance coverage of a specified type and for a policy term.

  • Principal Dwelling

    Dwelling occupied year round and not vacant for more than 30 days.

  • Private Passenger Automobile

    A vehicle that is operated by an individual or family for personal use and is not used for any commercial purposes, such as a taxi or delivery vehicle.

  • Reinstatement

    The restoration of a lapsed or cancelled policy.

  • Replacement Cost

    The amount required to replace your damaged property with no depreciation for age removed.

  • Replacement Value

    The costs to repair, replace or rebuild the lost or damaged property without deduction for depreciation.

  • Risk

    The person or object to be covered by insurance.

  • Robbery

    The taking of insured property from a custodian by a person or persons who have 1) caused or threatened to cause the custodian bodily harm, or 2) committed an overt unlawful act witnessed by the custodian or 3) taken such property from a custodian who has been killed or rendered unconscious.

  • Scheduled Articles

    An addition to a homeowners policy to provide extra coverage of listed items. Examples include jewellery, furs, stamp and coin collections.

  • Seasonal Dwelling

    Generally, a dwelling occupied by the insured for a portion of the year only. If a second dwelling that you own and use periodically is used year round see.

  • Secondary Dwelling

    Generally, a dwelling that is not unoccupied for more than 60 consecutive days at any one time in the course of any one year.

  • Serious Conviction

    Serious convictions, or Criminal Code convictions, include the following:

    • criminal negligence committed in the operation of a motor vehicle
    • manslaughter committed in the operation or use of a motor vehicle
    • driving while your licence is under suspension
    • racing
    • careless driving
    • driving without due care and attention
    • dangerous driving
    • impaired driving
    • failure or refusal to submit to a breath or blood test
    • failure to pass a breath or blood test
    • failure to stop at the scene of an accident
    • failure to stop for a police officer, resulting in an extended suspension of licence (for example, three years)
  • Stock

    Merchandise of every description usual to the insured’s business.

  • Subrogation

    The insurer, upon making any payment or assuming liability therefore under this form, shall be subrogated to all rights of recovery of the Insured against others and may bring action to enforce such rights. Notwithstanding the forgoing, all rights of subrogation are hereby waived against any cooperation, firm, individual, or other interest with respect to which insurance is provided by this policy.

  • Third Party Liability

    Acts that we can be held legally responsible for that affect the well being of others or their property.

  • Unoccupied

    Where the premises are complete with its contents, except that such person who normally occupies the premises is temporarily away. Coverage is suspended during the vacancy or unoccupancy or when the building insured or containing the property insured is shut down for more than 30 consecutive days, unless your company has made arrangements to allow the coverage.

  • Vacant

    Property is generally deemed to be vacant when the normal occupant is absent and the contents have been removed. Coverage is suspended during the vacancy or unoccupancy or when the building insured or containing the property insured is shut down for more than 30 consecutive days, unless your company has made arrangements to allow the coverage.

  • Voluntary Medical Payments

    A limited payment that will be made, at the request of the named insured, for medical needs of a person (other than the insured) without the need to prove legal responsibility.

  • Voluntary Property Damage

    A limited payment that will be made, at the request of the named insured, for repair/replacement of property (other than the insureds) without the need to prove legal responsibility.