Insurance Terms Explained

We know that insurance can be a complex and often confusing topic, filled with jargon and technical terms that can be difficult to understand for those not familiar with the industry. Whether you're looking to purchase insurance or simply trying to understand the terms and conditions of an existing policy, having a clear understanding of insurance terminology is essential.

This glossary aims to demystify insurance and provide clear and concise definitions of commonly used terms in the industry. From premium and excess to policyholder and underwriting, this glossary will cover a range of insurance-related terms to help you navigate the world of insurance with confidence.

Whether you're a first-time insurance buyer or a seasoned policyholder, this will serve as a valuable resource to help you understand the terms and concepts used in the insurance industry.

A

• Authorised representative: a person you appoint to deal with your policy on your behalf. You'll need to let the insurer know either over the phone or in writing.

B

• Beyond Economical Repair (BER): if, in the opinion of an expert, it would cost more to fix the damaged item than to replace it.

• Boiler Replacement Contribution (BRC): some insurers will pay a value towards a new boiler if yours is found to be beyond economical repair. This may depend on the age of your boiler.

• Breakdown/non-emergency: a sudden and unforeseen malfunction which results in the item no longer working correctly.

C

• Call out fee: see excess.

• Claim: a request made by you to the insurer for help following an insured event.

• Claim limit: the maximum amount payable by the insurer for each and every claim. This will include call out charges, labour, parts and materials.

• Cover limit: the maximum amount payable by the insurer in total on the policy each year.

E

• Emergency: a sudden and unexpected event that requires immediate attention to prevent further damage to the home, render your home unsafe or insecure or cause personal risk to you or others.

• Excess: the first amount of each claim, payable by you, before an engineer will attend.

I

• Insured event: an emergency that takes place following an event described in your policy book under the 'what we cover' headings.

• Insurer: the company that provides the insurance cover and collects premiums.

O

• Overnight accommodation: where, if your home becomes uninhabitable, the insurer will arrange for you to stay elsewhere while an emergency repair is made.

P

• Policy: a contract between the insurer and the policyholder which outlines the terms of the insurance cover.

• Policyholder: the person who applied for the insurance and is named on the policy schedule.

• Premium: the amount you will pay for your insurance cover.

R

• Remedial: any uninsured work which needs attention but doesn't directly relate to a claim or service under the insurance policy.

S

• Schedule: the document sent to you confirming the start date, your details and the home which is covered under the policy.

T

• Third-party: a person other than the policyholder and the insurer who may be affected by the policy.

U

• Underwriting: the process of assessing risks and determining the premium for an insurance policy.

• Uninhabitable: where, in the opinion of the claims team, it's not suitable for you to stay in your home until the emergency (covered by the policy) is rectified.

• Unoccupied: where no one has resided in the home insured for over 60 consecutive days.

W

• Waiting period: the time between taking the policy out and when you can make a claim (typically 14 days).