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| Word |
Definition |
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| Liberalization Clause |
If policies or endorsement forms are broadened through legislation or rating authority rulings—and do not require premium increases—the "liberalization clause" automatically includes the broadened coverage in similar, existing policies. |
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| Loss of Use Coverage |
If your home becomes uninhabitable because of an insured peril, Loss of Use (Coverage D) provides compensation for additional living expenses incurred in an attempt to maintain a normal standard of living. Loss of Use is automatically included as 20% of the Replacement Cost amount you carry in Coverage A. If your home were covered for $200,000, for example, Loss of Use coverage would provide up to $40,000 for additional living expenses. See Additional Living Expenses. |
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| Loss Payable Clause |
To protect lenders or lien holders, this clause extends coverage to parties with an insurable interest in your property, most often the institution holding your mortgage. |