Click on a term to see its definition: H

Lost in the terminology insurance companies use? Our quick-reference insurance glossary provides easy-to-understand definitions and examples of the terms insurance professionals use.

Hacker Insurance

Hacker Insurance provides protection against damage caused by hackers. A coverage that protects businesses engaged in electronic commerce from losses caused by hackers.

With the increase in the number of internet users and the rise of internet commerce (e-commerce), the threat of hackers getting unauthorized access into networks and committing all manner of damage has also risen.

Hacker insurance protects individuals and businesses against this risk. This protects against the theft of information, virus attacks, loss of business and credibility due to damaged websites and spoofing and so on. This may have cost the individual or business big money. Hacker insurance, within certain conditions, will pay for damage caused by hackers.

Hard Market

The Hard Market refers to the state of the insurance market where premiums are high because insurance coverage is in short supply.

A hard market may refer to the entire insurance industry in that area or to a certain line of coverage. A hard market is characterized by unpredictable carrier movements, where insurance companies decide not to operate in the area or not to offer certain lines of coverage. Another sign would be that there are increases in premiums that are not related to the loss experience for that risk. There may be also additional restrictions and exclusions for a certain type of coverage.

All these result in clients finding it hard to get coverage and they lose some of their negotiating powers.

Hard markets and soft markets may shift from one to another, since the insurance market (especially the casualty and property market) is cyclical.

Homeowners Insurance Policy

The Homeowners Insurance Policy is a policy that provides protection against losses for damages to the house and other connected structures. The policy may also cover losses on appliances, clothing and furniture, as well as losses due to theft, fire and windstorms. The coverage really depends on the type of policy being issued.

The Homeowners Insurance policy with an all-risk coverage provides the widest protection. This covers all risks, except for those that are stated in the exclusions.

There are also some policies that provide additional living expenses. This provides for expenses incurred because the policy owner and his family had to live elsewhere because of the damage in the house.

Some coverage (for earthquake and flood damage) may be purchased at an additional cost.

House Year

A House Year refers to the period in which a homeowners' insurance policy provides a year of coverage. This is usually equal to 365 days. The House Year is stated in the declaration. Particularly for policies on an annual basis, this is stated using the start date and termination date of the policy.

The House Year (like the Car Year used for automobile insurance) is the standard unit of measurement for this kind of property insurance.

It is important for a policy owner to know the House Year, in order to ensure that there is a policy always in force that provides protection against losses related to the house.

Hurricane Deductible

Hurricane Deductible refers to the dollar amount or to the percentage that limits the risk covered by the insurance policy.

This deductible is what the policy owner has to pay first before the insurance company will pay for the rest of the claim.

The hurricane deductible is higher for hurricane-prone areas, such as Florida and the rest of the eastern seaboard. This is usually computed as a percentage of the insured value of the house. The amount or percentage of the deductible may vary from state to state. In hurricane-prone states, this deductible may even be mandated and limited by law.

For example, a house is insured for $150,000 under a policy with a hurricane deductible of 2%. The insured will pay the first $3,000 and the balance of that will be paid by the insurance company.

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