Real Estate terms (45 hours)

Capital Gain

Profit earned from the sale of an asset.

Comprehensive Loss Underwriting Exchange (CLUE)

A database of consumer claims history that allows insurance companies to access prior claims information in the underwriting and rating process.

Coinsurance Clause

A clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage generally equal to at least 80% of the property's actual replacement cost.

Demand

The amount of goods people are willing and able to buy at a given price; often coupled with supply.

Elevation Certificate

A form supplied by a licensed surveyor certifying building elevations and required to show compliance with community floodplain regulations and determine appropriate insurance rates.

Equity

The interest or value that an owner has in property over and above any indebtedness.

Flood Insurance

A government-subsidized insurance policy that is always separate from homeowners insurance. It covers physical damage to a building or personal property directly caused by flooding (rising water). The Federal Emergency Management Agency (FEMA) administers the program.

Homeowners' Insurance Policy

A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability, and other common risks.

Mine subsidence insurance (MSI)

Specialized coverage for damage to buildings and foundations caused by the collapse or shifting of underground coal or clay mines. It covers structural damage from ground sinking or holes, as standard homeowner's policies typically exclude this risk.

Limits coverage to damage to the structure; damage to the surrounding site is not covered, nor is personal property. A separate policy is required for each structure to be insured.

PITI

The basic costs of owning a home - mortgage principal and interest, real estate taxes, and hazards insurance

Replacement Cost New

The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original.

Special Flood Hazard Areas (SFHAs)

A categorization of risk associated with floods determined by flood history and location used to determine the cost of flood insurance. The Federal Emergency Management Agency (FEMA) uses A to indicate inland areas and V for coastal areas.

Supply

The amount of goods available in the market to be sold at a given price. The term is often coupled with demand.

Area Preference

People's desire for one area over another, based on a number of factors such as history, reputation, convenience, scenic beauty, and location.

Situs

The personal preference of people for one area over another, not necessarily based on objective facts and knowledge

Nonhomogeneity

A lack of uniformity; dissimilarity. Because no two parcels of land are exactly alike. Uniqueness