Quick glossary to home insurance

Arranging insurance for your home may involve a number of unfamiliar words and phrases. Here's a quick guide to some of the most common ones.

As new

An insurance policy that will replace the items it covers with new ones. Also called "new for old".

Buildings insurance

Cover for the bricks and mortar plus fixtures and fittings of your home.

Claim

The formal application you make to your insurer for payment under your policy.

Contents insurance

Everything in your house that can be taken away when you move, including personal possessions.

Cover

The items your insurance policy protects and the risks it protects them from.

Excess

The part of an insurance claim that you have to pay.

Exclusions

Items or risks that are not covered by your insurance policy. The policy will explain what these are.

Home insurance

The term covers both buildings and contents insurance.

Household insurance

Another name for home insurance.

Indemnity policy

Under an indemnity policy, the amount the insurance company pays out is reduced to account for the age of items - the wear and tear on them, and their reduction in value over time.

Insurance schedule

The insurance schedule is a document that gives details of the cover you have and information that you have supplied to your insurer.

Insured

The person whose home is insured, also called the policyholder.

Insured perils

These are the events that the insurer provides cover for under the terms of the policy, such as fire, theft, flood or storm.

Insurer

The organisation that issues the insurance policy and pays any claims in exchange for an insurance premium.

Liability

Legal responsibility if someone is hurt or their property is damaged as a result of your property.

Liability insurance

Personal protection against prosecution for any unintentional injury or damage that you accidentally cause to someone else or their property through negligence.

Limit

The maximum amount you can receive for a given item in case of loss. All insurance policies include their own specific limits.

Loss

Any event causing damage.

Policy

The document setting out the legal rights and obligations of you and your insurer.

Policyholder

The person who has taken out an insurance policy.

Premium

The amount you pay for your insurance.

Sum insured

The maximum amount you could be paid under your policy.