Home Insurance Glossary
Understanding the language of home insurance can be confusing, especially if you’re not familiar with the terms used by insurers. This glossary provides simple definitions and explanations of common home insurance terms, to help you make informed decisions when choosing the right policy through our partner, Go.Compare.
Accidental Damage: Covers unintentional damage to your property or belongings, such as spilling a drink on a carpet.
Building Insurance: Covers the structure of your property and any permanent fixtures and fittings, such as walls, floors, and roofs.
Contents Insurance: Covers your personal belongings, such as furniture, electronics, and clothing, against loss or damage.
Excess: The amount you must pay towards a claim before your insurer will pay out. Choosing a higher excess can lower your premiums.
Home Emergency Cover: Covers the cost of repairs or call-outs in the event of a sudden emergency, such as a burst pipe or boiler breakdown.
Legal Expenses Cover: Covers legal costs if you need to take legal action or defend against legal action related to your property.
New-for-Old Cover: Covers the cost of replacing lost or damaged items with new items of the same kind and quality.
Personal Possessions Cover: Covers your personal belongings, such as jewellery and mobile phones, while you’re away from home.
Policy: A written agreement between you and your insurer, detailing the terms and conditions of your coverage.
Premium: The amount you pay for your insurance policy, usually on a monthly or annual basis.
Renewal: The process of extending your insurance policy for another term, usually one year.
Exclusions: Certain types of losses or damages that are not covered by your home insurance policy.
Liability Coverage: The portion of your home insurance policy that provides protection in case someone is injured on your property and you are found responsible.
Actual Cash Value: The cost to replace or repair damaged property, taking into account depreciation.
Endorsement: An addition to your home insurance policy that provides extra coverage for specific items or situations.
Peril: A specific risk or cause of damage that is covered by your home insurance policy, such as fire or theft.
Underwriting: The process that insurance companies use to evaluate your risk and determine the appropriate level of coverage and premium.
With this glossary, we hope to help you understand the language of home insurance and make more informed decisions when choosing the right policy through our partner, Go.Compare.