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Frequently used terms:

The auto insurance terms and definitions listed below will help you understand what you are buying when you shop for your auto or home insurance.

Glossary

Word Definition
Scheduled Personal Property Personal belongings that are worth more than the limits of liability set in your policy can be insured by adding this endorsement.
Sinkhole Collapse A special form of earth movement, covered by some homeowner insurance, referring to the sudden collapse or sinking of land into empty, underground spaces eroded by water. Most other forms of earth movement remain excluded from ordinary policies.
Smoke Damage As opposed to fire damage caused by combustion, heat or burning, this is damage attributable to the smoke itself.
Stated Amount In your policy, you may choose to cover certain items for a specific amount. In the event of loss, the insurer pays the stated amount regardless of the property's actual value. If, for example, you insured a painting for a stated amount of $15,000, in the event of theft, you would recover the $15,000 (minus your deductible), even if the painting had accrued value after the policy had been signed.