PSPIC Glossary of Insurance Terms

Appurtenant Structures: Also called "Other Structures", typically are structures not attached to the dwelling or main residence of your home, but are located on the insured property. These types of structures could include: detached garages, guesthouses, pool houses, sheds, gazebos, patio covers, patio decks, swimming pools, spas, etc.

Basement Foundation: A Basement foundation is where a home is built directly onto a concrete basement foundation providing living space below the home, below the ground elevation. All of the parameter walls must be constructed of concrete to qualify for this class of foundation.

Bolting to the Foundation: Steel anchor bolts must connect the sill plate (the wood board the lays directly on top of the foundation) to the foundation. Bolts should be placed 4 to 6 feet apart.

How to identify if the dwelling is bolted to the foundation: In houses with a crawl space, the presence of bolts can be verified by crawling underneath the house. In a slab on grade construction, an unfinished room such as a garage is the best place to verify the presence of bolts.

Bracing Cripple Walls: Cripple walls are used to support a house and create a crawl space. A cripple wall is a wood framed stud wall extending from the top of the foundation to the underside of the lowest floor framing of the dwelling. The height of a cripple wall generally ranges from 14 inches to 4 feet. The interior or exterior faces of cripple walls should be sheathed with plywood.

How to identify if the cripple walls have been braced: In houses with a crawl space, the presence of cripple wall bracing can be verified by crawling underneath the house where plywood sheathing will be visible on either the interior or exterior wall studs.

Condominium Unit: A condominium or townhouse unit is a personal residence that is individually owned within a multi-unit structure, complex or development. Typically, the responsibility for insuring the structure is held by the condominium association, and the individual unit owner is responsible for insuring their personal property within the unit.

Condominium Owners Insurance Carrier: This is the name of the insurance company that currently carries a Condominium Owners insurance policy in the name of the owner for this specific property. This protection must be maintained continually to keep the earthquake policy with Pacific Select Property Insurance Company in force and full effect

Current Personal Property Coverage Limits: These are the limits in which you choose to protect your personal property in your Condominium. The limit you choose must be equal to or greater than the limit you current carry on your Condominium policy.

Does the condominium have parking under the building?Is there parking located anywhere beneath the condominium structure? This could be a parking space for one car or a parking garage for multiple vehicles.

Dwelling: This is the main residential structure which is located on your property.

Damage to Dwelling: This would be earthquake damage to the main structure of the home. This could be damage to the walls, foundation, windows, floor, foundation, built in cabinets, plumbing and/or electrical fixtures, etc.

Homeowners/Fire Insurance Carrier: This is the name of the insurance company that currently carries either a homeowners or fire insurance policy in the name of the owner for this specific property. This protection must be maintained continually to keep the earthquake policy with Pacific Select Property Insurance Company in force and full effect.

Current Homeowners Policy Dwelling Replacement Value: The Coverage A amount of your current Homeowners and/or Fire Insurance policy is the limit that should reflect the replacement cost of the dwelling. This amount will be listed on the Homeowners/Fire policy as "Coverage A" or as "Dwelling Amount". The amount that is required by Pacific Select Property Insurance Company is the full replacement cost of the dwelling, and cannot be lower than the Coverage A amount of the Hpmeowners/Fire policy of your home.

Number of Levels: This could also be called "Number of Stories". This is the number of levels in the construction of the home including a basement. Number of Levels can be counted to include any living area that would be located above the base floor or basement.

Additional Living Expense: This would be claims paid for the additional costs incurred because of your home being repaired. You would have claims, for example, for renting a home or apartment while work was being completed on your home.

Loss of Use: Also called "Additional Living Expense". This is the necessary increase in living expenses incurred by you so that you can maintain your normal standard of living. Typically that would include temporary housing while your home is being repaired.

Masonry Construction: Homes built of Masonry constructions (brick, stone, cinderblock, concrete, adobe, etc) do not qualify for coverage with Pacific Select Property Insurance Company.

Masonry Veneer Less than 30%: A home constructed with Masonry veneer is typically a wood frame structure with Masonry attached to the exterior of the home to give the appearance that the home is constructed of Masonry materials. To qualify for this class of construction the home must not have Masonry materials attached to more that 1/3rd of the entire structure. Note: the Masonry material is NOT covered on Pacific Select Property Insurance Company policies.

Masonry Veneer More than 30%: A home constructed with Masonry veneer is typically a wood frame structure with Masonry attached to the exterior of the home to give the appearance that the home is constructed of Masonry materials. A home with Masonry materials on more than 30% of its exterior does not qualify for coverage with Pacific Select Property Insurance Company.

Seismic Retrofitting: At Pacific Select Property Insurance Company Seismic Retrofitting a home means that three things have been done to protect your home:

1. The dwelling has been bolted to the foundation,
2. cripple walls are braced with plywood or its equivalent, and
3. the hot water heater is secured to the building frame.

For homes built prior to 1955, verification of retrofitting must be provided to Pacific Select Property Insurance Company. Verification can be provided by having a licensed structural engineer or contractor inspect your home and give a written statement answering the above three questions. For your convenience, a PSPIC Retrofit Verification Form is available on this web site.

Single Family Residence: A single family residence that is owned by and individual (not a business or corporation). The home is typically insured with either a homeowners or fire insurance policy. The home is constructed permanently at its location (no mobile or motorhomes), and has been built using usual and customary construction materials.

Slab Foundation: A Slab foundation is that where the home is built directly onto a cement surface. Homes built on a slab foundation do not have a crawl space or access to the underside of the home.

Slope: Slope refers to the general area on which your house is situated. There are three categories of slope: Flat, Gentle, and Steep. Pacific Select Property avoids insuring homes built on Steep slopes. Earthquakes can generate landslides and significant property damage to structures and surrounding landscape in these areas. Steep slopes are those in excess of 26 degrees. To illustrate a slope greater than 26 degrees, see the graphic below:

If you believe your house is situated within 50 feet of a slope greater than 26 degrees, you will not be eligible to receive an earthquake insurance policy from Pacific Select Property.

Square Footage: The square footage of a home can be determined by measuring all of the exterior walls of the dwelling and multiplying the length of the home in feet times the width of the home in feet (width x length = total square footage of the home).

Securing the Hot Water Heater: A gas water heater should have a flexible gas pipeline installed to prevent breakage should movement occur. The water heater should be attached to the wall studs in several spots with metal rods or straps to prevent movement. The rods should be bolted directly to the wall studs and adequately attached to the water heater itself.

Wood Frame: Wood frame homes are constructed to utilize lightweight lumber (and sometimes metal studs) for its structural system. The exterior cover can be plywood, hardboard, or other various types of manufactured sidings.

Wood Frame with Stucco: A wood frame home with stucco is constructed to utilize lightweight lumber (and sometimes metal studs) for its structural system. The exterior is covered with a type of plaster that is sprayed onto plywood or wire mesh and tar paper exteriors to give a masonry look to a home. It is a cosmetic exterior which gives no support to the structure.

Year Built: Year built is the original year the dwelling was constructed. Typically, the original year built, if not known, can be located by contacting the local county tax assessor. While a home may be rebuilt or remodeled, even several times, the original year built must be used as a basis for underwriting the earthquake exposure to a home. Studies of past earthquake activity indicate building age can be a significant factor in determining damageability. Newer buildings are better buildings due to improved earthquake construction techniques.

Other Structures: Also called "Appurtenant Structures", typically are structures not attached to the dwelling or main residence of your home, but are located on the insured property. These types of structures could include: detached garages, guesthouses, pool houses, sheds, gazebos, patio covers, patio decks, swimming pools, spas, etc.

Damage to Other Structures: This would be earthquake damage to Appurtenant or Other structures on the property. Typically, these are structures not attached to the dwelling, but are located on the premises. Other Structures can be detached garages, guesthouses, pool houses, sheds, gazebos, patio covers, patio decks, swimming pools, spas, etc.

Other types of construction: Homes built of other types of construction (mobile homes, geodesic domes, manufactured homes, etc,) do not qualify for coverage with Pacific Select Property Insurance Company.

Concrete Perimeter with no Cripple Wall: A concrete foundation is poured in place around the parameter of the home. This reinforced concrete 'stem-wall' connects the outside walls and floor of a home to the ground. The floor joists (lumber that spans the width of the foundation to hold up the walls and floor of the home) rest directly on top of the concrete foundation, with no Cripple wall present.

Concrete Perimeter with Braced Cripple Wall: A concrete foundation is poured in place around the parameter of the home. Directly on top of the concrete foundation is built a wall what is called a Cripple Wall. Cripple walls are used to support a house between the concrete foundation and the floor of a home and create a crawl space. A cripple wall is a wood framed stud wall extending from the top of the foundation to the underside of the lowest floor framing of the dwelling. The height of a cripple wall generally ranges from 14 inches to 4 feet. The interior or exterior faces of a braced cripple wall should be sheathed with plywood.

Concrete Perimeter with an Unbraced Cripple Wall: A concrete foundation is poured in place around the parameter of the home. Directly on top of the concrete foundation is built a wall what is called a Cripple Wall, which is used to support a house between the concrete foundation and the floor of a home and create a crawl space. A cripple wall is a wood framed stud wall extending from the top of the foundation to the underside of the lowest floor framing of the dwelling. The height of a cripple wall generally ranges from 14 inches to 4 feet. If the interior or exterior faces of a cripple wall are not sheathed with plywood, then it is not braced. An unbraced cripple wall doe not qualify for coverage with Pacific Select Property Insurance Company.

Personal Property: This is the contents held within your residence or on your property. I would included items as: furniture, clothes, tools, toys, appliances, dishes, cosmetics, etc.

Prior Earthquake Damage: If your home or condominium has in the past been damaged from an earthquake, this damage must be disclosed to Pacific Select Property Insurance Company. To qualify for coverage, all prior damage must have been repaired prior to application for coverage.