Glossary of Terms

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Means the private house or its contents that are insured. Common terms used by insurers include "Householders", "Homeowners" and "Coverall". Beware of the words "All Inclusive" or "comprehensive" that are often used in connection with these terms, there is no such thing as an insurance policy that can cover every eventuality. Nevertheless, locally available policies do offer wide cover.

This is another term for Risk Management.

Do not confuse this with insurance. It is the process whereby you assess all of the possible events that could interfere with your business objectives. Having identified them a plan should be conceived to deal with each. This is a complex process on which we can advise you.

Part of your policy that groups the relevant information to your risk, who and what is covered and for what period.

These are special arrangements for groups of people that usually provide preferential terms. They exist for life, health and motor risks and also for certain trade groupings.

May be defined on the policy but the customer is always able to adopt a description that fits a particular business.

This is a legal principle that does not affect the customer directly. It enables your insurer, once a claim has been settled to pursue recovery against anyone responsible, for example a negligent motorist who damaged your vehicle. Such a recovery helps to keep net claims costs and eventually premiums to a minimum.

An upward, downward or lateral movement of land which causes damage to property, not normally covered on commercial property insurance, but may be offered by some household insurers. Insurers will have areas where, nevertheless, they are not willing to give cover because of regular incidents.

Means taking the property of someone else without any intention of returning it. On a property insurance policy there is normally a requirement for the act to follow violent and forcible entry to or exit from your premises. Motor policies will cover this risk but may have conditions as to the security of your vehicle.

Also known as the "Average" clause. Because property insurance rating is based on the assumption that everyone insures the full value at risk, insurers take precautions to penalize those that do not do so and who do not contribute their fair share to the insurance claims fund. Remember, this fund is merely the total of all premiums that customers pay. Where you under-insure your property, any claim will be reduced by the same percentage as your amount insured bears to the actual value.

This is the process whereby Insurers decide whether to accept your risk and what price to charge. You are normally asked to help them in this process by completing a proposal form that groups together the relevant information about you and what you are insuring.

Because the customer knows more about the risk he is insuring than the Insurers the Law requires that "utmost good faith" is observed. This means that you must tell the insurers everything about your risk that would affect their judgment in deciding whether to insure you or not and at what cost. If you conceal such a fact that is material your insurance will be invalid. When you are insuring we will help you to complete any necessary forms and discuss your situation with you. In the end it is better to disclose everything, whether or not you feel it is material and let your insurers decide.


This term has a special meaning on insurance policies. The insurers will either require you to do or not to do something that effects the risk. For example, not to use certain flammable liquids in a process or to remove waste from a factory daily. Any failure to observe a warranty will invalidate your insurance. We will draw any such requirements to your attention when handling your insurances and check at each renewal that the circumstances are unchanged.