Here is a useful glossary of home insurance terminology:
Please note that these are general terms of insurance and are not the terms that apply to any insurance coverage that you place. The terms of your insurance will be agreed directly between you and the company who are placing your insurance. Actual cash value :: If you as the insured party make a claim on your uk insurance policy, the insurers will offer you as the insured party the actual cash value for your lost items. This means, the insurers will give you as the insured party only what the items are worth in their used state, not what it would cost you as the insured party to replace the items with new ones at today's prices.
Alarm discount :: you as the insured party could get a discount if you as the insured party have an alarm system installed in your home.
All risk :: When you as the insured party have all-risk coverage (building or contents), you as the insured party are insured for almost everything, unless it is specifically excluded from your policy (e.g. intentional damage to your own property would not be covered). This is the most common type of coverage because it offers the most protection, especially for any strange unforeseen events.
Brick veneer :: This is one of the materials used in home construction. The construction type of your property to determines your rates. Generally, if your home is of a more solid construction like brick or brick veneer, the lower your uk insurance rates. This is because these materials are less combustible than other building materials.
Building coverage :: For homeowners only, building coverage protects the structure of your home, not your contents inside.
No claims bonus :: the insurers will give you as the insured party a discount if you as the insured party have not made any uk insurance claims in the last 3 years.
Construction type :: The construction type of your property determines your rates. Generally, if your home is of a more solid construction like brick or brick veneer, the lower your uk insurance rates. This is because these materials are less combustible than other building materials.
Contents coverage :: Contents coverage includes protection for all your personal property you as the insured party normally keep in your unit and on your lot. You as the insured party can purchase All-risk or Named perils contents coverage.
Deductible :: A deductible is the set amount of money you as the insured party have to pay when making a claim. For example, let's say your deductible on your property policy is £500. If you as the insured party had a fire and the damages were assessed at £10,000, you as the insured party would have to pay the £500 on many insurance policies deductible, for taking care of the balance of the repair costs. The amount of your deductible affects the price of your uk insurance policy. The higher your deductible, the less the cost of your uk insurance premium.
Detached home :: A detached home is a residence where none of the walls are shared by another person's residence. It sits on it is own property and is a free-standing unit. the insurers use your type of property to determine your rates.
Duplex :: A duplex is a unit in a building where there are two apartments one on top of the other (1st floor and 2nd floor). the insurers use your type of property to determine your rates.
Fur option :: A basic policy limits the amount of coverage available for furs and jewellery. A standard limit is £3,000. If you as the insured party make a fur or jewellery claim on a regular property policy, you as the insured party are obliged to pay your deductible first. You as the insured party should consider this option if you as the insured party want to eliminate your deductible, or if you as the insured party have a fur that exceeds the £3,000 on many insurance policies limit.
Guaranteed replacement cost :: No matter how careful you as the insured party are when appraising your home, it is possible to underestimate the replacement cost of the building. The Guaranteed replacement cost option protects you as the insured party from being under-assessed, and will make up for any difference in the replacement value, or will provide you as the insured party with added compensation up to an agreed amount. This coverage is for homeowners only.
Home uk insurance :: Home or homeowner's uk insurance provides protection for both, the structure of your home and your contents inside. You as the insured party should choose this option if your home is not part of a condominium corporation.
Jewellery option :: A basic property policy limits the amount of theft coverage available for your jewellery and furs. The standard limit is £3,000 on many insurance policies . If you as the insured party make a jewellery or fur claim on a regular property policy, you as the insured party are obliged to pay your deductible first. If you as the insured party choose the Jewellery option, you as the insured party do not have to pay a deductible on jewellery claims. You as the insured party would also have a higher coverage level for your jewellery and furs. You as the insured party can also use this option to itemise your larger pieces of jewellery separately and use the basic policy limit to cover your smaller valued pieces.
Liability coverage :: Liability uk insurance protects you as the insured party from having to pay damages to people if you as the insured party have been found responsible for unintentionally injuring them or their property. For example, if someone slipped on your kitchen floor and broke his/her leg, you as the insured party would need liability uk insurance to protect you as the insured party if he/she sued you as the insured party and the courts ruled it was your fault.
Multi-line discount :: When you as the insured party insure both your home and car with us, you as the insured party could get a Multi-line discount.
Named perils coverage :: Named-perils coverage protects you as the insured party from the most common types of property uk insurance claims. Named-Perils includes fire, theft and water damage. Everything is listed very clearly in your policy booklet so you as the insured party have a complete list of what your uk insurance policy covers.
Primary residence :: The place where you as the insured party spend the majority of your time is your primary residence.
Property uk insurance :: Property uk insurance is a general term used to describe all types of home insurance. It includes homeowners, tenant and condo insurance.
Property type :: the insurers use your type of property to determine your rates. A property type can be a house, a row house/townhouse, duplex, a high-rise etc.)
Replacement cost :: If you as the insured party have to make a property claim, your uk insurance company will give you as the insured party the cash value of all the items you as the insured party have lost. When you as the insured party replace the item with a similar kind and quality within 180 days of the day it was destroyed, the uk insurance company will pay you as the insured party what it cost you as the insured party to replace the item. This means you as the insured party are getting the value of new items, not the depreciated value of what your belongings were worth.
Replacement value :: If you as the insured party have to make a property claim, the insurers will give you as the insured party the cash value of all the items you as the insured party have lost. When you as the insured party replace the item with a similar kind and quality within 180 days of the day it was destroyed, the uk insurance company will pay you as the insured party what it cost you as the insured party to replace the item. This means you as the insured party are getting the value of new items, not the depreciated value of what your belongings were worth.
Rider :: When you as the insured party add an option to your uk insurance policy that is not part of the original document, it is called a "rider". A rider can add or remove coverage on your policy for certain items. For example, when you as the insured party purchase the jewellery and furs option, you as the insured party are adding a rider to your policy that increases the coverage limits for these items.
Row house :: A row house (also called a townhouse) is a home where one of the walls is shared by another person's residence. the insurers use your type of property to determine your rates.
Schedule :: When you as the insured party want to list specific belongings on your uk insurance policy, you as the insured party "schedule" them. This means you as the insured party provide a special list of high value items and their exact worth, so that you as the insured party can set limits that are higher than the standard policy limit or establish an agreed value of a certain item. This can make things a lot easier if you as the insured party have a claim. Scheduling items on your policy does usually increase your premiums. When you as the insured party schedule items you as the insured party often have to include an appraisal or a receipt of purchase. People often schedule works of art or expensive jewellery.
Semi-detached home :: A semi-detached home is a unit where one of the walls is shared by only one another person's residence. the insurers use your type of property to determine your rates.
Sewer back up option :: A regular property policy covers you as the insured party for any damages caused by a "sudden, accidental discharge of water in your home." This includes coverage for freezing pipes and the overflow of water from public water mains carrying drinking water (e.g. a bathtub overflow). If you as the insured party wish to be covered for damages caused by the back up of sewers, septic tanks, eaves troughs or downspouts, you as the insured party should purchase the Sewer back up option.
Solid brick :: Solid brick is one of the materials used for home construction. uk insurance companies use the construction type of your property to determine your rates. Generally, if your home is of a more solid construction like brick or brick veneer, the lower your uk insurance rates. This is because these materials are less combustible than other building materials.
Tenant uk insurance :: Tenant uk insurance provides coverage for your belongings inside a rented unit. You as the insured party can be renting a private home, part of a home or an apartment in a huge building.
Townhouse :: A row house (also called a townhouse) is a home where one of the walls is shared by another person's residence. the insurers use your type of property to determine your rates. |
