Home Insurance Glossary

Home Insurance Glossary

by David Redmond on 10 Jan, 2011

Accidental Damage (Buildings)
Optional cover that provides protection for accidents that could damage the permanent structure of a home. For example; whilst in the loft, putting a foot through the ceiling.

Accidental Damage (Contents)
Optional cover that provides protection for home contents against accidental loss or damage. For example spilling paint on a carpet.

Construction Type
The material, such as brick, used to build the wall of an insured property.

Contents Value
Cover for the contents in your home that suffer damage/loss caused by a range of events such as fire, robbery and flood.

Continuous Authority
Automatic renewal to an insurance policy without changing the payment method (annual).

Endorsements
Changes to the terms or conditions of a policy.

Excess Amount
The amount a claimant has to pay towards a claim. The higher excess amount the lower the premium will need to be paid. Some sections of the policy have an automatic excess amount and this will be payable by the claimant.

Insurance Premium Tax (IPT)
A tax imposed on general insurance premiums by the government. Usually included in the price of a home insurance policy.

Legal Interests
Someone who has a financial interest in a property (such as a mortgage provider).

Listed or Historical
Historical buildings or structures of architectural interest. Lists covering local areas can be found at local council planning departments, County Council offices or at most local reference libraries.

Neighbourhood Watch Area
A property in an area designated as a neighbourhood watch area by the National Neighbourhood Watch Association (NNWA).

Number of Storeys
This is the total number of storeys in a property including basements and loft conversions.

Payment Day
The day in the month that a payment will be taken on.

Pedal Cycle Cover
Cover for loss of or damage to bicycles (including its parts and accessories).

Personal Possessions Outside Home
Cover for accidental loss or damage to items that you usually take out of your home. For example:

  • Clothes
  • Laptops
  • Money.

Professionally Maintained Alarm
Alarms installed by an NSI or SSAIB approved company, and is annually maintained by that company.
NSI: “National Security Inspectorate”
SSAIB: “Security Systems and Alarms Inspection Board”
These independent organisations provide inspection certification services.

Rebuild Cost
The cost to rebuild a home as stated in an insurance policy.

Roof Type
There are two types of roof; thatched or standard (standard is any material other than thatch such as slate or tile). If the property is partly thatched it is classed as thatched. Valuables Inside Home Valuables inside of your home covers:

  • Jewellery / watches.
  • Pictures and other works of art.
  • Any items that are worth more than £2,000 (must be listed prior to claim)..

About the Author

David Redmond


David Redmond is a Partner of Don Gilliard Finance Group. He is a fee-only, independent financial advisor and financial planner. For over 15 years, he has been helping individual investors and their families realize their investment goals.