In researching a global property insurance and international liability insurance policy, these are the terms that need to be understood when comparing international personal insurance options after getting quotes, and to understand the policy document after it is received.

Glossary Terms and Definitions:

Actual Cash Value - The way certain insurance policies pay claims after a loss. One that takes into account depreciated value before paying the insured for losses. ACV global property insurance policies are inferior to international personal property insurance policies that pay on a replacement cost basis.

All Risk Insurance Policy - An international property insurance policy that will cover for ALL perils except those specifically excluded in the insurance policy document. Generally considered the highest level of coverage.

Depreciated Value - The value of an item after taking into consideration depreciation, i.e.. Age of item, wear & tear, damage sustained, general overall condition. (See Actual Cash Value)

Exclusions - Perils that are not covered by an insurance policy, as listed in the policy document.

Expatriate Liability Insurance - Insurance that protects an expatriate and their family while living and working overseas from lawsuit and a variety of personal damage awards where a court rules that an individual has done monetary damages to another person or business, outside of the scope of employment. Insurance policies carried by employers can only protect expatriates from claims that are directly related to the scope of employment.

Expatriate Property Insurance - Property insurance needed by someone working outside of their country of assignment for a U.S. or foreign employer. Insurance is needed because "home country" homeowners or renters insurance plans do not work in the host country location.

Global Personal Liability Insurance, Global Liability Insurance - Insurance used to protect the financial net worth of individuals and their families by providing insurance in the even of lawsuit or monetary damage award.

Global Personal Property Insurance, Global Property Insurance - Insurance used to indemnify the policyowner in the event of loss to personal effects and personal property caused from perils like fire and theft.

Hazard - Something that increases the chance of loss. An electric heater sitting on paper is a hazard which increases the chance of the peril, fire. Potential hazards that can cause loss can depend on the host country location.

International Personal Effects - Term used to describe all regular property (not valuable articles) one is taking with them into the host country that needs to be insured.

International Property Insurance - Insurance used to describe insurance on personal effects for all people living and working outside of their home country, or country of citizenship.

International Valuable Articles Insurance - Insurance coverage used to protect valuable articles while someone is living outside of their country of citizenship. Valuable articles or scheduled property includes expensive jewelry, art, antiques, camera and other non-standard or unique personal effects. A $500 mountain bike can be insured as regular property. A $11,000 road bike, for example a brand or model used in the Tour De France, would need to be insured as a valuable article.

International Workers Compensation Insurance - Insurance employers use to cover "on the job" injury and illness for employees residing outside of the home country of the parent company, either expatriates or local nationals.

Peril - The cause of loss. For example, lightning, earthquake, fire, theft, etc. Not all perils are covered by insurance policies and some perils are excluded. The exclusion in an international property insurance policy can help determine it's quality.

Policy Document - The legal paperwork presented by the insurance company to the insured, demonstrating what is, and what is not covered by the insurance policy. In addition to what is covered and what is excluded, the insurance policy will present the duties and obligations of the insurance company and of the insured.

Replacement Cost - Typically used to describe a type of insurance policy that would pay for the replacement cost of an item lost or damaged by a covered peril without taking into account depreciation or wear and tear.

International Underwriter - Someone that works for an insurance company who makes the decision to accept risk, and at what price.

Valuable Articles, Valuable Articles Insurance - Insurance protection on personal property that has either a high value, a unique appraised value, or both. An item labeled a valuable article by an insurance policy needs to be insured to its true value using an appraisal. A valuable article without a current appraisal to demonstrate actual current value, will have the value capped at an amount below the true value in the event of a loss or claim.

Have questions? Need help?

We are here to answer any and all of your questions related to the proper international property insurance policy, and address the programs needed to protect your financial future through international liability insurance. Simply email us at info@internationalpropertyinsurance.com