Property Insurance

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Waiver of Coinsurance.

A provision in a Property policy that the coinsurance clause will not apply if the total loss does not exceed a stated amount, such as 2% of the sum insured or the amount of $2,500, whichever is greater. The reason for such a provision is to eliminate having to do a large inventory in order to determine whether or not the insured has complied with the coinsurance clause, especially where very small losses are involved.

Warranty Policy.

A policy written by a reputable company. The term is used in cases where additional coverage is needed: The additional policies all state that the reputable company's warranty policy will stay in force and that they provide coverage exactly like that of the warranty policy.

Watchman Warranty Clause.

A provision often found in a Burglary or Fire policy providing for a reduced premium if there is a watchman on duty.

Water Damage Clause.

A provision affording coverage for certain specified causes of water damage, e.g., damage caused by water leakage, overflow of heating or air-conditioning systems, or plumbing.

Wave Damage Insurance.

Coverage against damage to property resulting from high waves or tides.

"While" Clauses.

Clauses which suspend coverage "while" certain conditions exist, such as vacancy.

Windstorm.

Wind of sufficient violence to be capable of damaging insured property. Windstorm coverage has traditionally been part of extended coverage (EC), but today it is usually included automatically as part of basic coverages.

Work and Materials Clause.

This is a provision found in many Property Insurance policies which states that the insured is allowed to have the typical types of work and materials for his business. The clause makes this clear so that the policy cannot be voided later because of the "increased hazard" provision of the Standard Fire policy.