Home Insurance Glossary
Here are the meanings of some of the words and phrases used on this website. This
glossary is here only as a general guideline designed to help you with terms that
you might not be familiar with. If you need to understand the term as it applies
to your specific circumstances then we recommend you refer to your relevant policy wording.
Accidental Damage to buildings
You can get extra protection by adding this option to your policy. This will cover
things like drilling through a pipe or wall or putting your foot through a ceiling
while in the loft.
Terms and exclusions apply. Please refer to relevant policy wording for full details
Accidental Damage to contents
You can get extra protection by adding this option to your policy. This will cover
things like spilling red wine on your carpet.
Terms and exclusions apply. Please refer to relevant policy wording for full details
Approved Alarms:
A NACOSS approved alarm is one which is approved, inspected and maintained through
a service contract with a National Approved Council of Security Systems (NACOSS)
supplier. If a company is NACOSS approved they will display this on company headed
paperwork.
If you alarm breaks down you must:
- tell your alarm supplier immediately.
- tell us.
- Arrange for repair work immediately.
Approved Locks:
You may receive a discount off your home insurance if approved locks have been fitted
as detailed below
Final exit door (main entrance); other single external doors
This must be fitted with either:
- a 5-lever mortise deadlock confirming to British Standard 3621
- or rim deadlock confirming to British Standard 3621
- Or the manufacturers key operated integral multi-point locking system.
External double doors
Must be fitted with any of the above or:
- a key-operated lock with bolt top and bottom.
Accessible windows, skylights, fan lights and French doors
Must be fitted with any of the above or:
- a key-operated sliding security locks with detachable keys.
Sliding patio doors
Must be fitted with either a:
- key-operated lock with bolt top and bottom.
- or the manufacturers key operated integral multi-point locking system.
Outbuildings or garages
- Must be fitted with key operated security devices.
Please ensure all security devices are put in place at night, except in occupied
bedrooms and whenever the home is left unoccupied. Also ensure keys are removed
from locks and placed out of view.
Excess buildings
An excess is the first part of a claim that you pay. The compulsory excess on this
policy is £50, which is the minimum amount you can choose. The amount which
you select is the total excess, which is made up of both the compulsory and the
voluntary excess. However you can lower the premium by choosing to increase the
amount of excess you are willing to pay. If a claim is made against subsidence,
heave or landslip the compulsory excess will be £1000.
Condition:
A clause in a policy which governs the payment of a claim.
Excess contents – including personal possessions.
An excess is the first part of a claim that you pay. The compulsory excess on this
policy is £50, which is the minimum amount you can choose. The amount which
you select is the total excess, which is made up of both the compulsory and the
voluntary excess. However you can lower the premium by choosing to increase the
amount of excess you are willing to pay.
Domestic Emergency:
An urgent problem involving your home’s plumbing, drainage, heating, gas or electrical
systems. An emergency is classed as the result of a sudden or unforeseen incident
at the property which immediately:
- Exposes the insured or a third party to a risk to their health;
or
- Creates a risk of loss of, or damage, to the property and/or any of your belongings;
or
- Renders the property uninhabitable.
Home Emergency Cover:
A type of insurance which provides assistance if you have a
domestic emergency. An emergency helpline provided by the Insurer
will arrange for a skilled tradesman to come to your home.
Indemnity:
This ensures that following a claim you are restored to the same financial position
that you were in immediately before the insured loss, subject to the deduction of
any policy excess. Account is taken for age, wear and tear and depreciation.
Insured:
The person or persons who has taken out the insurance to cover their property.
Insurer:
An organisation which issues an Insurance Policy in exchange for
a premium and pays any eligible claims arising.
Market Value:
The price you could expect to get for your property if you sold it
Personal Possessions
This will provide cover against accidental damage or loss of your possessions whilst
away from your home both within the UK and anywhere else in the world for up to
60 days in any one period of insurance. The minimum sum insured is £2,000
and the maximum is £7,000 with a limit of £2,500 for any individual
item.
Terms and exclusions apply. Please refer to relevant policy wording for full details
Policy:
The document which details what is covered and outlines the circumstances under
which a claim will be paid and the Conditions governing any payment.
A policy is a contract which is binding on both the customer and the Insurer.
Premium:
The amount you will need to pay to an Insurer
to be covered by the insurance.
Rebuild Value:
The cost of rebuilding your property in the event of a disaster and the value which
most buildings insurance is based on. Your survey should tell you the rebuild value
of your property. The rebuild value should be reviewed annually.
Risk:
This has two meanings - either hazard or the item or event which is insured.
Single Article Limit :
The maximum amount which an Insurer will pay for any one item
Sum Insured:
The value of the insured item or event specified in the Policy
which will form the basis of a claim settlement. This should always reflect your
potential financial loss - see Indemnity. For buildings insurance,
the policy covers a Sum Insured up to £500,000 and you will need to ensure
this is adequate for your property. For contents insurance, the policy covers a
sum insured of up to £50,000 for the value of items which are not part of
the fabric of your home such as furniture, clothes, CDs and so on.
Valuables:
High risk items which normally include jewellery, furs or watches; sculptures, pictures,
paintings or other works of art; articles of gold, silver, precious metals or precious
stones and any collections of stamps, coins, medals or banknotes.
You: see insured