Insuring Agreement
Definition:
The section of an insurance policy that outlines what is covered.
Explanation:
It specifies the insurer’s obligations, covered perils, and scope of protection. This is one of the most important sections to review in any policy.
Example:
The insuring agreement may state that the insurer will cover direct physical loss caused by fire, windstorm, or theft.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.