Terminology Explained
The following terms are some common insurance terms that you may encounter when buying Home Insurance.
Accidental Damage
Accidental damage cover is available on the both contents and buildings and covers damage to property as a result of an accident e.g. spillage of wine on a carpet.
Act of God
An event that could not have been foreseen, avoided or safeguarded against, usually natural causes and without human intervention.
Agent
An individual or organisation acting on behalf of another party. Brokers are sometimes know as agents.
Arbitration
Court alternative to resolving dispute. Usually a mutually approved independent arbitrator helps two or more disputing parties arrive at a mutually acceptable agreement.
Assessor
Company or individual appointed by the insurer to asses a claim.
Broker
An agent who brings insurer and insured together to enter a contract.
Cancellation Clause
A contract provision which allows insurer or insured to cancel before a specified expiration date.
Claim
Submitting details of accident/loss for insurance company to review if part of agreed policy terms and pay compensation as agreed.
Cooling Off Period
Legal period extended by any financial institution, including insurers, in which the customer may cancel without incurring a penalty.
Effective Date
The date insurance cover commences
Excess
Agreed amount that insured pays in the event of a claim before insurer pays balance.
Exclusions
Those events or items which are not covered by policy e.g. bicycles aren't included in many household policies unless specified.
Insured
Person covered by an insurance policy.
Insurer
Provider of the insurance contract.
Intermediary
Person or organistion that offers advice and organises policies for clients. insure.ie is regulated by the Financial Regulator Regulatory authority as a multiagency intermediary.
Irish Brokers Association
Professional body governing Insurance brokers in Ireland.
Lapsed Policy
A policy terminated for non-payment of premium.
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An extra cost added to a premium by insurance company usually as a result of bad claims history, age, occupation or other demographic information.
Market Value
Based on the value of property at a specific time, the amount the market would be willing to pay.
Material Fact
If the insured fails to disclose all circumstances or give incorrect details and it results in a lower premium being offered this will result in insurance company refusing to payout in the event of a claim.
No Claims Bonus
Discounts earned up to a period of 5 years for not claiming on previous policies.
Policy
Legally binding document issued to the insured by the insurer which states agreed terms and conditions of contract.
Policyholder
Individual who is issued the policy.
Premium
Payment made to insurance company.
Public Liability Policy
Liability cover for damage or injury caused to others on the insureds property.
Quote
Estimation of cost of providing insurance cover based on information provided to the insurer.
Rebuild Value
Estimation of amount required to rebuild property.
Renewal
Extended cover over agreed time period.
Settlement
Amount agreed and paid by Insurer, in the event of a claim.
Voluntary Excess
Amount the insured chooses to pay additional to the standard policy excess.