1 Pinehill Drive, Suite 2
Lr. Sackville, NS

Phone Number
(902) 865-0025


The following are commonly used terms in the insurance industry and may be present in your policy.

If you have specific questions or concerns about any term, clause or wording please do not hesitate to contact us. We would be happy to walk you through your policy and answer any questions you may have.

Please note:
These terminologies and definitions are for general information only. It should be further noted that actual terms, conditions and definitions affecting insurance should always be defined according to the actual insurance policy wording and not any terms listed below.

An unforeseen event or occurrence at a given time and place, occasioning physical injury to person or property. A more comprehensive term than “negligence”.
Actual Cash Value
The fair or reasonable cash price property would bring in a fair market, allowing for depreciation.
A written or oral agreement from the insurer giving temporary protection to the insured pending issue of the policy.
Builder's Risk Insurance
Covers building during construction. Normally includes coverage for all materials entering into project, including landscaping. Coverage for transit exposure and property at another location usually available as coverage options.
An impact or sudden contact of a moving body with an obstruction, whether moving or stationary.
Voluntary agreement by a person who posses sufficient mental capacity to make an intelligent choice. (see also Express Consent, Implied Consent)
The amount of decrease in the value or property over a period of time due to use, wear, tear and obsolescence.
A structure used as a residence.
Earned Premium
The difference between premium paid by the insurer and the portion the insurance company must return if the policy is cancelled during its term; the amount of the premium at any time which pays for the coverage furnished by the insurance company during the expired portion of the policy term.
A piece of paper issued by the insurer indicating in writing that there has been a change in the terms or conditions of the insured's policy.
Express Consent
Written or oral consent directly given. (see also: consent, implied consent)
Facility (Association)
Pooling agreement between all automobile insurers (Facility Association). A market is guaranteed for all licensed drivers and registered owners and is written with selected carriers on behalf of the association. The collective results of which are then shared by all members of the association.
Floater Policy
Policy which covers items that have no fixed locations, e.g., jewellery or other items of personal property worn or carried about by the insured.
Good Faith
The state of mind denoting honesty of purpose, freedom from intent to defraud, and being faithful to one's duty and obligation. A basic principle of insurance, e.g., normally applicant for insurance must provide all details of risk to be insured, including information regarding previous claims, cancellations, or refusals of insurance.
Implied Consent
Presumption based on signs, actions, or facts, that consent has been given. (see also, Consent, Express Consent)
Insurable Interest
Generally one has an insurable interest where he derives pecuniary benefit or advantage by preservation and continued existence of property or would sustain loss from its destruction.
A contract (policy) whereby, for monetary consideration (premium), one party (insurer) undertakes to compensate the other (insured) for loss on a specified subject by specified perils.
Insuring Agreement
Describes the coverage provided by the insurance policy.
In insurance, the reduction in value of a property occasioned by a peril against which insurance is granted. Also, a state of fact being lost, ruined or destroyed.
Loss Payee
Person named in the insurance policy whom will be paid in the event of loss.
Important; necessary.
Material Fact
A fact, which, if the insurer knew about it, would cause it to decline the insurance altogether, or charge a higher premium for accepting it.
Named Insured
The person specifically named in the policy, usually the one initiating the contract.
Named Peril Policy
A policy of insurance in which the perils insured against are listed or named.
Building used in connection with a main building and generally separated from it, e.g., storage shed, garage.
Partial Loss
A loss under an insurance policy which does not either completely destroy or render worthless the insured property, or which does not exhaust the insurance limits applying thereto.
The cause of the loss, e.g., fire, hail, ect.
Personal Property
Property belonging to insured, other than real property.
Giving up one's claim or title.
The premium required by an insurer to insure a particular risk.
Restoring all of the insured's rights under a policy which has lapsed or been cancelled.
Replacement Cost
The cost of replacing, repairing, constructing, or reconstructing, whichever is the least, the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation.
A document issued by the insurer that modifies the policy by expanding or restricting its benefits. similar to endorsement.
The danger or hazard of a loss of the property insured. May also refer to a specific peril or property being insured.
Scheduled Property
Means of insuring property requiring identification of each item and limits applicable to each.
Short Rate Cancellation
When the insured terminates the policy prior to its expiry, the insurer is entitled to calculate the refund on a short rate basis, the amount of which is less than the proportionate part that remains unearned.
Substandard Risk
Below average risk which may be rejected by insurer or, if accepted will command a higher rate.
Tenant's Policy
Generally, policy insuring property and liabilities exposures of person who does not own their own home.
Time on Risk Charge
The premium charged for an incomplete period of insurance, e.g., for a binder that did not result in a policy being issued.
Total Loss
Complete destruction of insured property. Also, a loss is a total loss when there is nothing substantially remaining which could be used as a basis of restoring the whole.
Uninsured Motorist Coverage
Coverage provided on automobile policies and which is intended, within fixed limits, to compensate victims of automobile accidents for bodily injury caused by an uninsured motorist.
Property is usually considered to be unoccupied where the premises are complete with its contents, except that such person who normally occupies the premises is temporarily away.
Empty of contents. Implies abandonment and non occupancy for any purpose. In insurance, where the terms “vacant” and “unoccupied” are used together, “vacant” means empty while “unoccupied” means lack of usual presence of human beings.
Having no legal force or binding effect.
A promise that certain facts are truly as they are represented to be and that they will remain so.
Wear and Tear
Deterioration caused by ordinary and reasonable use of the subject matter.

Customer Service, Integrity & Honesty

Salvatore Insurance is a well respected, specialized brokerage serving clients through out Atlantic Canada for the past twenty years.

Our knowledge and expertise is in both commercial and personal insurance products, and our specialization in the trucking industry sets us apart from other insurance brokers. Understanding your business and personal needs enable us to best service your insurance needs.