Thankfully most of us don’t have to use terms like ‘Obligation to Notify’ in our daily lives, but when it comes to buying home insurance they can become very important.

Please Select : A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z  

A

Association of British Insurers Group (ABI)

The ABI represents the combined interests of the UK’s insurance operations, and promotes high standards of customer service in the insurance industry.

Act of God

The clause ‘Act of God’ includes events like lightning strikes or earthquakes, which are out of human control and can’t be predicted. These events can sometimes be excluded from your insurance policy, meaning you can’t claim from insurance when you are affected by one.

B

Buildings Insurance

Buildings insurance covers the structure of your property and its permanent fixtures and fittings like toilets, basins and baths, fitted kitchens and interior decorations. Buildings insurance will usually include outbuildings like sheds, garages and greenhouses.

C

Claim

This is a formal request for payment from you to the insurer, which sometimes requires the completion of a claim form.

Conditions

Conditions are the rules stated in your home insurance policy which both you and your insurer must follow.

Contents

Contents or Home Contents insurance covers the belongings you have in and about your home – usually those possessions you would be likely to take with you if you moved home. These can include furniture, kitchenware, clothing, audio visual equipment and many other valuables and personal effects.

Cover

In your insurance contract the cover describes exactly what risks you are insured against.

D

Damage Caused by Natural Forces

Home insurance can cover damage caused by natural forces; this includes harm from natural occurrences like storms, snowfall, hail, flooding, landslides and earthquakes.

Dual insurance

Dual insurance takes place when the same item is insured against risk in more than one insurance policy.

Due Diligence

This is the care that a reasonable person takes to avoid harming themselves, other people and their property. This means that you need to take care to try to prevent any harm from coming to you and the things you own. If it appears that you have not tried to avoid this kind of damage, you may not receive full payment for your insurance claim.

Duty to Minimise Loss

If something happens to your home or contents and you want to claim on your insurance, you need to make sure that you do everything you can to stop your property from being damaged any further.

E

Excess

This is the set amount you would usually pay towards the total amount of a claim.

Exclusions

Exclusions are any items, events or circumstances that are not covered by your insurance policy.

Expiry Date

This is the date and time on which the home insurance cover ends.

F

Fire insurance

This will generally cover damage caused by fire, lightning or explosion.

G

General Conditions

These detail the rights and obligations of both you and the insurer regarding contracts for the type of cover.

Glass Insurance

This cover insures you against damage to glass listed in your policy.

H

Home Contents insurance

Home Contents insurance covers the belongings you have in and about your home – usually those possessions you would be likely to take with you if you moved home. These can include furniture, kitchenware, clothing, audio visual equipment and many other valuables and personal effects.

I

Inception Date

The date and time from when insurance cover begins.

Insurance Premium Tax (IPT)

This is a tax taken by the government, and comes as a percentage of the insurance premium. It’s good to remember that the amount of Insurance Premium Tax charged is shown as a separate item on any insurance paper work. IPT does not apply to policyholders who live on the Isle of Man or the Channel Islands.

L

Legal Expenses Insurance

This type of insurance normally covers expenses such as lawyers’ fees and court costs, as well as any amount paid to a claimant if you are involved in a legal dispute.

Loss

A loss is the event which causes you to seek payment from your insurance company by claiming.

Loss Adjuster

This is an insurance specialist who works for insurance companies. Loss adjusters investigate claims to make sure they are valid and that the person claiming is telling the truth. Loss adjusters also work out how much you’ll get paid out in the event of a claim.

N

No Claims Bonus

This is a discount most insurers offer you where no claims have been made over a certain amount of time.

O

Obligation to Notify

You have to give the insurer all the information they require to work out the risk of insuring you. If it turns out you didn’t give them all of the information truthfully, without neglecting relevant details you may not receive payment on your claim.

Overinsurance

This occurs when the amount something is insured for is greater than its actual value. If a claim is made, only the replacement value is normally paid out.

P

Policy

This is a document which gives all the details of the home insurance cover that the insurer is contracted to provide you with.

Policyholder

This is the person who has taken out home insurance with the insurer.

Premium

This is the amount you will have to pay insurers, either every month or every year for your home insurance.

R

Rebuilding Cost

The rebuilding cost of your home should not be confused with its current market value, as market value includes the value of the land and grounds too. Follow the link below to the Association of British Insurers, which provides information on how to calculate the rebuilding cost of your home.

Risk

When talking insurance, a risk refers to something that may have an effect on how serious the damage or loss you might have to claim for is. This helps insurers decide on the amount your home insurance premium should be set at.

S

Special Conditions

Special Conditions are any individual conditions which are in addition to the general conditions mentioned above.

U

Underinsurance

This occurs when the amount something is insured for is less than its actual value. Underinsurance can have serious consequences for home insurance policy holders as they may not be fully paid out for any loss or damage.