§ 5401. Definitions. In this article:

(a) "Fire insurance" means coverage against loss of or damage to any
property resulting from fire, as defined in paragraph four of subsection
(a) of section one thousand one hundred thirteen of this chapter and
implemented by section three thousand four hundred four of this chapter.

(b) "Extended coverage" means insurance against direct loss to
property by windstorm, hail, explosion, riot, riot attending a strike,
civil commotion, aircraft, vehicles and smoke, as limited by paragraph
five of subsection (a) of section one thousand one hundred thirteen of
this chapter.

(c) "Broad form coverage" includes extended coverage, as well as
insurance against direct loss to property by volcanic eruption, burglary
damage, weight of ice, snow or sleet, glass breakage, accidental
discharge or overflow of water or steam, falling objects, freezing,
artificially generated electrical current, collapse, and tearing apart,
cracking, burning or bulging.

(d) "Additional perils coverage" means any of the following written in
connection with fire, extended coverage and broad form coverage policies
issued pursuant to this article:

(1) "Vandalism and malicious mischief insurance", means coverage
against loss or damage to property resulting from vandalism or malicious
mischief, as defined in subparagraph (D) of paragraph five of subsection
(a) of section one thousand one hundred thirteen of this chapter,
subject to a reasonable graded deductible, of not less than two hundred
fifty dollars.

(2) "Sprinkler leakage insurance", means coverage against loss or
damage to property resulting from the breakage or leakage of sprinklers,
as defined in paragraph six of subsection (a) of section one thousand
one hundred thirteen of this chapter.

(3) "Rent insurance", means coverage against actual loss of rental
income resulting from property being rendered necessarily untenantable
due to its damage or destruction by a peril insured against.

(4) "Business interruption insurance", means coverage against actual
loss resulting from necessary interruption of business due to damage or
destruction of property by a peril insured against.

(e) "Association" means the joint underwriting association continued
by this article.

(f) "Plan of operation" or "plan" means the plan of operation
complying with section five thousand four hundred two of this article.

(g) "Insurable property" means real property at fixed locations
anywhere in this state, or the tangible personal property located
thereon, which is determined by the association, after inspection and
pursuant to criteria specified in the plan, to be insurable.
Neighborhood or area location shall not be considered in determining
insurable condition. Property is not insurable if it has
characteristics of ownership, condition, occupancy or maintenance which
violate public policy.

(h) "Net direct premiums" means gross direct premiums written on
property in this state for fire and extended coverage insurance,
including the fire and extended coverage components of homeowners and
commercial multiple peril package policies as computed by the
superintendent, less return premiums or the unused or unabsorbed
portions of premium deposits.

(i) For the purposes of this section "homeowners insurance" means such
homeowners insurance policies defined in subsection (a) of section two
thousand three hundred fifty-one of this chapter, as are determined by
the superintendent to be equivalent to any homeowners policies developed
by a nationally recognized principal rate service organization, except
that where the market value of the insured property is less than its
replacement cost, then the coverage shall be provided in policies
determined by the superintendent to be equivalent to that contained in
market value (HO-8) policies.