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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	Increased Cost of Construction Insurance	Commonly added as an endorsement to homeowner's policies, "increased cost of construction insurance" covers the additional costs of building repair or reconstruction when you rebuild with more expensive services, materials and techniques required by local ordinances.
	Increased Hazard	Property insurance terms are tailored to the nature and use of the property as it exists when the policy is written. Should you introduce dangerous materials or activities into the property, like making fireworks, you will have added an increased hazard whose liabilities would not be covered by your policy.
	Indirect Loss	Also known as consequential loss or damage, indirect loss results from, but is not caused directly by, a peril. If your business property burned down, for instance, the property itself is a direct loss, while the lost business revenues would be considered an indirect loss.
	Inflation Guard Coverage	"Inflation Guard Coverage" provides automatic periodic increases on the building's property insurance, to reflect the effects of inflation on building replacement expenses.
	Inherent Vice	A property flaw or fault which causes its own destruction. Damages from inherent vices are usually not covered through insurance.