Home insurance jargon

A B C D E F G H I JKL M

N O P Q R S T U V WXYZ

Accidental damage cover

Insurance cover against damage to goods rather than loss or theft. For example, if you accidentally put a foot through the ceiling whilst in the loft, this would be covered under the accidental damage section of the buildings policy. Alternatively, if you accidentally dropped paint on your carpet, this would be covered under the accidental damage section of the contents policy.

Act of God

An unpreventable and unpredictable event, which could cause loss or damage to buildings, land, vehicles etc. Insurance policies often exclude acts of God or acts of war, although they will usually cover natural disasters such as floods.

All risks

An all risks section of a home insurance policy, for example, may cover possessions such as a laptop or watches when taken outside the home whereas your standard home insurance policy cover would not offer cover for such items away from the home. Some insurance companies will refer to all risks cover as personal possessions cover.

Arbitration clause

A clause in your insurance policy which states that if neither you nor your insurer can agree on an 'appropriate claim settlement' you both hire an appraiser. The appraiser elects an independent umpire who is neutral to both parties. A majority decision will decide the amount of the claim.

Bedrooms

The number of bedrooms will usually be asked in order to give an indication of the overall size of a house. A bedroom is generally defined as a room either originally designed for sleeping in (even if now used for other purposes), or later converted for sleeping in. For example, a house extended by loft conversion into a bedroom would increase its total number of bedrooms.

Buildings cover

Buildings insurance covers the building itself, together with permanent fixtures and fittings which you own or which you are legally responsible for, within the premises. Buildings insurance is usually a requirement if you have a mortgage.

Walls, gates and fences.
Paths, drives, patios and terraces.
Domestic outbuildings.
Swimming pools.
Tennis courts.
Sanitary ware (bathroom fittings).

Cash / money

The definitions of cash or money for home insurance purposes are:

Current legal tender, postal and money orders, cheques.
Gift tokens, luncheon vouchers, traveller's cheques, premium bonds, and travel tickets.
Savings certificates and stamps.
Unused postage stamps not forming part of a collection.

Please check the insurance company definitions as these may be subject to change.

Claims & losses

A loss is classed for insurance purposes as an event that has occurred and has resulted in damage to or loss of use of something. A claim is an application to your insurance company to compensate you for that loss given the cover in force on your current policy.

Claims history

Insurance companies will use any claims history you have as a factor for your insurance premium or renewal premium. Your claims history will help paint a picture of the potential risk you pose as a customer. Some insurance companies won't look to insure anyone who has previously made a claim whether it's a claim for buildings or contents. It could also be that you have a claim during a policy which will leave you unable to obtain a renewal premium from your current insurer as you fall out of their insurance criteria. Fortunately however, there are plenty of insurance companies who will cover customers with previous claims and offer competitive rates.

Cover for household possessions. As a rule, contents cover insures anything that can be moved which belongs to you or for which you are legally responsible while buildings cover insures anything that can't, such as the windows or bathroom fittings.

Some examples of contents are:

Furniture (fixed furniture such as fitted wardrobes are covered under buildings).
Radio and television aerials, satellite dishes, their fittings and masts.
Property in the open but within the premises.
Cash, credit cards, deeds, registered bonds etc.
Medal, stamp or coin collections.
Jewellery, precious stones, articles made from gold, silver and other precious metals, watches and furs.
Clocks, collectors' items, pictures and other works of art.

Contents cover doesn't always include jewellery and cash as standard so it is important to check the cover available and the limits of these items in the policy wordings.

Depreciation

Even with a replacement as new policy, (new for old), you should deduct from clothing and household linen claims, an amount for wear, tear and depreciation. A man's suit, for example, is reckoned to have a lifespan of around five years. For each year you have had your suit you should deduct one fifth of today's price of a new one. Please note that this is only a guide and we recommend you confirm these details with any insurer you are looking to take a policy out with.

Exclusions

Your policy will exclude certain risks or possessions. These are explained fully in your policy document. You should read this fully and speak to your insurer if there is anything you do not understand.

Common exclusions are theft if you have let or sub-let your house (or part of it) unless there is forced entry, or loss / damage arising if you leave your house unoccupied for long periods of time, usually more than 30 consecutive days.

Freezer cover

Should the unfortunate occurrence arise where you have a power cut or your freezer malfunctions, freezer cover will offer cover for the loss of contents either by cost of total replacement or a cost to a maximum amount. The amount of cover depends on the policy purchased.

Garden cover

Some insurance policies will incorporate cover for items in the garden and/or the garden itself. You may be able to increase the level of cover offered by purchasing an ancillary offered by the insurer. Garden cover may include the following, dependant on the policy: garden furniture or children's toys, re-landscaping if damaged by fire, explosion, lightning, malicious persons, theft or attempted theft.

Good state of repair

Good state of repair is a property without structural problems. Examples that most insurers say would negate your home being classed as a good state of repair would be dry rot, rot or infestation requiring timber or window replacement, damp, roof or chimney stack damage, faulty wiring or incomplete construction.

Heave

The upward movement of the ground supporting the building.

Home / property

The private dwelling in which you live, its garages and outbuildings, used solely for domestic purposes.

High risk items

High risk items are those items that are most frequently stolen from our homes when they are burgled, perhaps mainly due to the value or rarity of the items or the ease of moving the item from your home. Whilst there may be differences between insurance companies about what specifically classifies as a high risk item, the following list should encompass most of them:

Antiques.
Articles of gold, silver or precious metals.
Binoculars.
Cameras and photographic equipment
Computer or laptops and equipment
Curios.
Furs.
Jewellery.
Paintings and other works of art.
Stamp, coin and medal collections.
Televisions.
Video and audio or DVD equipment.
Watches and clocks.

Home emergency cover

There may be times when you need a little extra help in your home, especially if this involves the failure of household services you rely on. Home emergency cover is a practical way of having effective protection when household problems occur which, though common, are not always covered by standard home insurance. As with most things, each insurance company will offer varying levels of cover but you will more than likely find the following included in home emergency cover:

Central Heating.
Electrical Failure.
Lost Keys.
Plumbing and Drainage.
Security.

Indemnity

The principle by which insurance policyholders are put in the same financial position after a loss, as they were immediately before it.

Joint proposer

An additional policyholder and joint owner of the home to be insured.

Landslip

A downward slip or movement of a mass of rock, earth or artificial fill.

Legal cover

A level of cover often offered as a separate cover or ancillary for a fixed fee. Legal cover is designed to help you through difficult and stressful legal situations, giving financial support to protect yourself and stand up for your legal rights.

Listed building

Listing ensures that the architectural and historic interest of a building is carefully considered before any alterations, either outside or inside, are agreed. Please note that the link in our quote process for rebuilding costs cannot be used for listed buildings. An independent authority must be used in these cases.

Loss adjuster

A loss adjuster is an impartial claims specialist responsible for investigating claims on behalf of insurance companies. The role involves examining the causes of loss or damage, confirming policyholders are covered by the insurance policy and assessing the validity of the claim.

Loss assessor

A loss assessor has nearly the same job description as a loss adjuster; the main difference is a loss assessor works on the behalf of a client where a loss adjuster works on behalf of an insurer.

Material fact

A material fact would be information that would affect an insurance company's willingness to accept a policy, or the premium it would charge. Failing to disclose a material fact could invalidate a policy. An example of this would be a history of subsidence in a house not advised to the insurer.

New for old

New-for-old policies, also referred to as 'replacement as new' cover, meet the full cost of replacing items if they are stolen or destroyed, should the claim be deemed valid. Alternatively, the cost of repair will be met if the items are damaged. Some exclusions may apply with each insurer such as clothing or pedal cycles.

Optional extras (ancillaries)

Insurance companies will often offer extra levels of cover for an additional premium. In some cases these optional extras are extensions of cover already included in the insurance quote and in other cases they are a completely separate cover, from the quote provided. Perhaps the two ancillaries most likely to be offered are home emergency cover & legal cover.

Personal possessions cover

Personal possessions is a valuable extension to contents cover and generally insures clothing, baggage, cash/money, credit cards, sports equipment, prams, pedal cycles and other personal belongings that you wear or take away from the home in everyday life.

This includes cover for jewellery, spectacles, binoculars and telescopes, mobile telephones, keys, pedal cycles, sports equipment for social use and cameras.

Policyholder

A policyholder is the person or organisation to which the insurer issues the policy. More clearly defined as the person who the insurance company will pay the benefits of the insurance policy cover too, should a claim arise.

Premises

For home insurance purposes, this will be the risk address or household which requires the cover and is stipulated as the premises during the quote process. The premises or risk address will be shown in the policy schedule once cover has been issued.

Premium

The sum of monies paid to an insurance company for an insurance policy.

Quote

Dependant on your insurance details or risk, an insurance company may or may not offer you a quote. Insurance companies look to cover certain areas of the market; so while one company will look to insure high value homes another may only insure those with no claims history. Given this market targeting by insurers the premium offered can range from favourable to outrageous!

Re-building cost

The re-building cost is the total cost of re-building your home if it was completely destroyed. It includes the cost of all professional fees, materials and labour including the cost of demolishing and clearing the old building.

As house prices continue to rise, you cannot guarantee that the re-building costs will automatically be lower than the purchase price/value of the house to be insured. Remember, that although the cost of the land was included in the cost of the house purchase, this would not be included in the re-building costs. If you have held insurance previously for the home you are insuring, your re-building cost or 'buildings sum insured' will sometimes be shown on your policy schedule or renewal notice. It may also appear on any survey or valuations carried out on your home, but if it is an old valuation, remember to adjust for inflation purposes.

Sanitary ware

Defined mainly as:

Baths and bath panels.
Bidets.
Lavatory pans and cisterns.
Sinks.
Shower trays.
Shower screens.
Washbasins.

Schedule

This gives policy details of how much cover you have (the sum insured), the discount you qualify for (if any), the period of insurance, the premium you have to pay and the sections that apply. With some policies you may get a new schedule when you renew the policy or whenever you change any policy details.

Single article limit

This is the maximum amount that one item can be covered for, on your home insurance policy. The single article limit value is set by the insurance company.

Sub-let

To sub-let is to lease or rent all or part of a property, (which is already leased or rented to you), to another person.

Subsidence

Subsidence is the downward movement of the ground supporting the building. Particular problems arise when the movement varies from one part of the building to another. Some of the main causes (surprisingly) of subsidence are vegetation, leaking drains and certain soils.

Sum insured

The maximum an insurance company will pay for a claim.

Sum insured (contents)

This is the total cost of replacing the contents of your home. It includes household goods, personal possessions and most of the furniture as some fixed items of furniture, such as a fitted kitchen and bathroom are covered by buildings rather than contents insurance.

Tenure

Tenure describes who lives in the home and your relationship to the home. For instance, if you live in the home and you own it you would be classed as 'owner occupier'. If you own the home but do not live in it and rent it out then you would be classed as a 'Landlord'.

Underwriter

An underwriter is employed by an insurance company to decide whether to accept a risk and calculate the premium to be charged. Underwriting then, is the method that an underwriter uses to determine what kind of risk your details are and what would be a fair charge if your risk is deemed worthwhile by the insurance company.

Underinsured

When the sum insured on your policy is not enough to cover the maximum possible potential loss or damage.

Valuables

These are items which may fall into the high risk items section but have a higher value than the high risk items limit. For a list of possible items please refer to the high risk items section above.

Warranty insurance

Warranty insurance, if applicable to the policy, provides cover against the cost of repairs to broken-down household appliances.

Year built

The year that the property was actually built.

site map

van insurance