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.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W

	Liberalization Clause	If policies or endorsement forms are broadened through legislation or rating authority rulings-and do not require premium increases-the "liberalization clause" automatically includes the broadened coverage in similar, existing policies.
	Limit of Liability	The ceiling set on the amount an insurer will pay for a loss. See Single Limit Liability and Split Limit Liability.
	Livery Use	This is use of a vehicle to carry passengers for a fee, as in a taxicab or a rented limousine. Unless specified in your policy, livery use is not covered by your auto insurance. Carpooling is not considered livery use.
	Loss of Use Coverage	If your home becomes uninhabitable because of an insured peril, Loss of Use (Coverage D) provides compensation for additional living expenses incurred in an attempt to maintain a normal standard of living. Loss of Use is automatically included as 20% of the Replacement Cost amount you carry in Coverage A. If your home were covered for $200,000, for example, Loss of Use coverage would provide up to $40,000 for additional living expenses. See Additional Living Expenses.
	Loss Payable Clause	To protect lenders or lienholders, this clause extends coverage to parties with an insurable interest in your property, most often the institution holding your mortgage.