Home Insurance: Glossary of Terms

When applied to buildings insurance, this means any unintentional damage caused to your property by you or your family. Typically this could be caused by something like drilling through a pipe. You can also cover your contents against accidental damage caused by things like spillages. Some insurers include accidental damage for items such as TVs, computers and audio equipment.

Many insurers will give a discount if your home alarm system is approved and maintained by a NACOSS approved firm - the National Approval Council for Security Systems. This independent regulatory and certification body is responsible for the approval of security system companies involved in the installation and maintenance of:

• Intruder alarms
• Access control systems
• Closed-circuit television systems (CCTV)
• Fire alarm systems

You may receive a discount off your home insurance if mortice or rim deadlocks conforming to BS3621 have been fitted.

The amount of any claim which the Insurer insists you pay in the event of a claim.

see Excess.

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 or damage to the property and/or any of your belongings; or •Renders the property uninhabitable. Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

The amount of any claim which you agree to pay.

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. Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

This ensures that following a claim you are restored to the same financial position that you were in immediately before the insured loss. Account is taken for age, wear and tear and depreciation.

The Sum Insured increases each year in line with inflation.

An organisation which issues an Insurance Policy in exchange for a premium and pays any eligible claims arising.

The person who is, or whose property is, insured. Also known as the Policyholder or Proposer.

The obligation to recompense others because of your negligence.

For buildings insurance, the price you could expect to get for your property if you sold it.

The legal definition of negligence is the failure to exercise the care towards others which a reasonable or prudent person would do in the circumstances, or taking action which such a reasonable person would not.

Everyday items that you take outside your home but may wish to include in your contents insurance. Typical examples are jewellery, credit cards, money and MP3 players. We also use the term Personal Possessions with some policies.
Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

See Legal Liability.

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.

See Insured.

The amount you will need to pay to an Insurer to be covered by the insurance.

See Insured.

On a home insurance policy it is the replacement of an insured article by the Insurer on a 'new for old' basis if it lost or destroyed.

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 - some insurers do this for you if the value is Index Linked.

This is a term used to describe the person who is responsible for causing any losses or damage.

The document that describes details of the cover you have and information that you have supplied to your insurer.

On home insurance this is the maximum amount which an Insurer will pay for any one item unless it is specified separately on the policy.

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 Sum Insured is usually the Rebuild Value. For contents insurance, it is the value of items which are not part of the fabric of your home such as furniture, clothes, CDs and so on. Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

These are commonly known as high risk items, which are jewellery, furs or watches, sculptures, pictures, paintings or other works of art, articles made of gold, silver, precious metals or precious stones, clocks and any collections of stamps, coins, medals or banknotes.
Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

An additional amount you may wish to pay in the event of a claim above any compulsory excess insisted upon by the Insurer. You can decide this sum at the point you take out a policy. Doing this will usually help to lower your Premium.

See Insured.