Auto & Homeowner's Insurance Glossary

Definitions offered in this section are meant to provide generic insurance information to consumers. They are not complete descriptions of all terms, exclusions and conditions applicable to the products and services offered by Electric Insurance. The terms and conditions of the policies issued are controlling in all cases. Product availability varies by state.

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	FAIR PLAN	An acronym for "Fair Access to Insurance Requirements," FAIR offers insurance to people in high-risk areas who might otherwise be denied coverage. Reinsured by the United States government, FAIR is a pooling plan providing policies for fire and allied perils.
	Fair Rental Value	This coverage pays for the rent the building could have earned, less any discontinued expenses, while the premises is not fit for occupancy. Refer to Coverage D under your homeowner's or dwelling policy for more information.
	Financial Responsibility Clause	In your insurance agreement, the financial responsibility clause shows that your policy conforms to state financial responsibility requirements.
	Financial Responsibility Required	Drivers in most states are required by law to demonstrate their ability to pay for bodily injury or property damage for which they are responsible. In most cases, this "financial responsibility" is fulfilled by purchasing insurance with limits of liability equal to or greater than the amounts required by the state. In some states, you must carry proof of financial responsibility, in the form of an insurance policy, before you can register a vehicle.
	Fire	In property insurance, "fire" refers to the unintentional or "hostile" occurrences of flame and combustion. Damage caused by fire in your fireplace, for instance, is not covered under your homeowner's policy. But if your rug were ignited by a spark from that same fireplace, you would be covered.
	Fire Resistive Construction	Building construction using fire-resistive materials in its roof, floors and exterior walls. See also Modified Fire-Resistive Construction.
	Fire Wall	A wall designed to contain or seal off fires in a building.
	Fireproof	Unfortunately, no one can make a building completely impervious to fire. Today, insurers use the term "fire-resistive" to describe buildings that are practically resistant to most fire damage.
	Flood	A temporary submersion, partial or complete, of ordinarily dry land by water or mud. Floods are typically caused by an overflow of waters, whether inland, tidal or from any accumulated runoff from any source. Flood is excluded under a typical homeowner's insurance policy.
	Flood	Insurance Policies sold to cover property owners from losses caused by floods or flooding, usually offered in conjunction with a government flood insurance plan and reinsured by the federal government.
	Frame Construction	The most common form of housing construction, frame buildings are made primarily of wood frames and joists.
	Full/Limited Tort Threshold Options	Limited Tort, if selected, applies to the named insured and other household members. The tort threshold determines when an insured may sue for damages. While Full Tort, if selected, does not put a limitation on when an insured may sue for damages.
	Funeral Expenses	Funeral or burial expenses actually incurred if "bodily injury" causes an "insured's" death within 24 months from the date of a covered accident.