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.
U
Underinsurance
The term used to describe a situation where the sum that has been insured by the policyholder is high enough to realistically cover the possible loss or damage that could result. An insurance company under the "condition of average" may also therefore underpay a claim that is made by the same amount that the insured party under insured by.
Underwriter
A person who decides whether a particular risk is acceptable and who calculates an appropriate premium to cover that risk.
Utmost Good Faith
A principle of insurance that requires a proposer of an insurance policy to provide all relevant information that may be required by the insurer to assess the risks involved.
