The A-Z House Insurance Guide.
When looking into buying house insurance it can be a bit daunting when you come across all the terminology involved. So we have compiled a guide to insurance terminology.
Click on the relevant letter that the term or word begins with and find out what it means.
C
Capacity
This is the limit of an insurer in respect of the full limit of the amount of business that it can write. The Financial Services Authority looks at companies to ensure that they have adequate reserves to be able to cover the risks they are insuring against.
Certificate
The document that is issued by insurers to demonstrate that an insurance policy is in place.
Claim
A claim is made when an insurance policyholder requests a settlement for a loss that they have suffered under the terms of their insurance policy.
Commercial Business
A policy that can be taken out by a company or organisation that covers their business. Would include fleet policies for motor business. These policies are usually weighted towards liability.
Commission
This is money that is paid out by an insurance company to a independent intermediary/broker/agent when they sell their policies.
Comprehensive Insurance
This is a policy covering a number of types of damage or loss usually pertaining to motor insurance.
Condition
An integral part of most insurance policies that declares the rules that must be followed for the cover in the policy to be valid. An example of this could be taking due care to look after your property by making sure you lock the doors before you leave the house unattended.
Consequential Loss
This is insurance covering the loss of profits of a business resulting from an insured event (also known as Business Interruption).
Contents Policy
An insurance policy that covers the contents within a home or building against risks.
Contribution
The principle of contribution applies where a risk is insured twice or more, for example on a travel and household policy, and the two insurers concerned may share the cost of any claim. This means that an individual cannot claim twice on two policies for the same loss which would contravene a key principle of insurance which is that the insured cannot be better off following a loss and claim.
Cover Note
A temporary insurance document giving cover whilst the annual policy and certificate are being produced and printed. Normally issued at the beginning of a policies cover period when the insurer may be awaiting proof of no claims or other issues prior to the full policy being issued.
Critical Illness Insurance
A policy which pays a lump sum on the diagnosis the covered having various life-threatening illnesses that will have been covered and specified in the policy.
