Extended coverage is a type of insurance that provides protection against specific incidents that are typically excluded from standard insurance policies. This coverage can help property owners mitigate risks that are unique to their properties or situations.
Face amount refers to the nominal value or dollar value of a security stated by the issuer. For bonds, it is the principal amount paid back to the bondholder at maturity. For insurance policies, it represents the amount payable to the beneficiary upon the death of the insured.
Insurable interest is a financial stake in an entity or event such that the loss of that entity or the occurrence of the event would cause a financial loss to the interested party. It is a prerequisite for purchasing insurance and claiming benefits on a policy.
Maturity refers to the due date of a loan, bond, lease, or insurance policy when the principal amount or full sum is to be repaid or the agreement expires. It establishes the timeline over which periodic payments or interest accrues and is eventually repaid.
Replacement Value Protection is an insurance policy feature that provides for the reimbursement of the full cost of lost or damaged property, less the policy’s deductible amount, without deduction for depreciation.
