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A Guide to Insurance Terms

Buildings Declared Value

The ‘Buildings Declared Value’ or ‘Declared Value’ means the Insured’s assessment of the cost of reinstatement (or rebuilding) of the property insured at the level of costs applying at the inception of the period of insurance, providing due allowance for professional fees, debris removal costs, and the additional cost of reinstatement to comply with European and Public Authority requirements. (back to top)

Claim

A claim is a legal action to obtain money, property, or the enforcement of a right against another party. You can make a claim if risks covered by your insurance policy have resulted in loss or damage to items covered by it. (back to top)

Cover

The items your insurance policy protects and the risks it protects them from. The items can range from your roof to your windows, and the risks are events ranging from storms to theft. (back to top)

Day one uplift

This is a feature of an insurance policy to protect against any increases in reinstatement costs following a loss during the period of insurance attributed to inflation affecting labour and material costs. (back to top)

Delegated authority

Delegated authority means the insurers have authorised the broker to undertake certain tasks
on their behalf e.g. arranging cover and taking payment for policies. (back to top)

Delegated claims authority

Where the broker will act on behalf of the insurer to deal with any claims by verifying loss and cover and making any necessary payments. (back to top)

Excess

The part of an insurance claim that you pay. (back to top)

Exclusions

Items or risks that are deliberately not covered by your insurance policy. The policy will explain what these are and are usually found at the back of the policy booklet. (back to top)

Inception Date

The date on which an agreement takes effect, the policy start date. This can also be referred to as the ‘Effective Date’. (back to top)

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. (back to top)

Insurance policy

The legal contract between you and the insurance company, describing what is covered and for how long. (back to top)

Insurer

This is how the insurance company is often referred to. You are referred to as the policy-holder. (back to top)

Liability

Legal Responsibility. If someone is hurt or their property is damaged as a result of your property, then you would have to pay them compensation. (back to top)

Limits

The maximum amount an insurance company will pay out for a certain type of item, such as loss Of metered water. These are always explained in your policy. (back to top)

Policy-holder

Someone who has taken out an insurance policy. (back to top)

Premium

The amount you pay for your insurance. (back to top)

Renewal Date

The date your policy expires. You must renew your policy before or on this date to maintain continuity of cover. (back to top)

Sum insured risks

The maximum amount you could be paid under your policy. You need to make sure this is enough to replace your possessions (for contents insurance) or rebuild your home (for buildings insurance). (back to top)
 

A Guide to Insurance Terms

Buildings Declared Value

The ‘Buildings Declared Value’ or ‘Declared Value’ means the Insured’s assessment of the cost of reinstatement (or rebuilding) of the property insured at the level of costs applying at the inception of the period of insurance, providing due allowance for professional fees, debris removal costs, and the additional cost of reinstatement to comply with European and Public Authority requirements. (back to top)

Claim

A claim is a legal action to obtain money, property, or the enforcement of a right against another party. You can make a claim if risks covered by your insurance policy have resulted in loss or damage to items covered by it. (back to top)

Cover

The items your insurance policy protects and the risks it protects them from. The items can range from your roof to your windows, and the risks are events ranging from storms to theft. (back to top)

Day one uplift

This is a feature of an insurance policy to protect against any increases in reinstatement costs following a loss during the period of insurance attributed to inflation affecting labour and material costs. (back to top)

Delegated authority

Delegated authority means the insurers have authorised the broker to undertake certain tasks
on their behalf e.g. arranging cover and taking payment for policies. (back to top)

Delegated claims authority

Where the broker will act on behalf of the insurer to deal with any claims by verifying loss and cover and making any necessary payments. (back to top)

Excess

The part of an insurance claim that you pay. (back to top)

Exclusions

Items or risks that are deliberately not covered by your insurance policy. The policy will explain what these are and are usually found at the back of the policy booklet. (back to top)

Inception Date

The date on which an agreement takes effect, the policy start date. This can also be referred to as the ‘Effective Date’. (back to top)

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. (back to top)

Insurance policy

The legal contract between you and the insurance company, describing what is covered and for how long. (back to top)

Insurer

This is how the insurance company is often referred to. You are referred to as the policy-holder. (back to top)

Liability

Legal Responsibility. If someone is hurt or their property is damaged as a result of your property, then you would have to pay them compensation. (back to top)

Limits

The maximum amount an insurance company will pay out for a certain type of item, such as loss Of metered water. These are always explained in your policy. (back to top)

Policy-holder

Someone who has taken out an insurance policy. (back to top)

Premium

The amount you pay for your insurance. (back to top)

Renewal Date

The date your policy expires. You must renew your policy before or on this date to maintain continuity of cover. (back to top)

Sum insured risks

The maximum amount you could be paid under your policy. You need to make sure this is enough to replace your possessions (for contents insurance) or rebuild your home (for buildings insurance). (back to top)
 

 

 

 

Deacon is a trading name of Barbon Insurance Group Limited which is authorised and regulated by the Financial Services Authority.
Registered in England number 3135797. Registered office address: 4-9 Highview, High Street, Bordon, Hampshire. GU35 0AX

The products we offer are available for UK properties only. Up to date policy terms and conditions are available from Deacon: 0333 400 8292 or email info@deacon.co.uk

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