Home Insurance Terms Explained

Accidental damage cover

This is an optional extension to the home insurance policy to cover your property for damage caused by unexpected and unintended incidents. For example, if you accidentally spilt paint on the carpet, this would be covered under the contents accidental damage extension. If you accidentally put your foot through the attic floor, this would be covered under the buildings accidental damage extension.

Material facts

Material facts are those that the insurer would regard as likely to influence the acceptance and assessment of this application. If you are in any doubt about whether facts are considered material, you should disclose them. We will be happy to give you advice if you wish. If a material fact is not disclosed to an insurance company cover may not apply in the event of a claim.

Proposal Form

An application for insurance cover which forms the basis of the contract.

Buildings

This figure should represent the the rebuilding costs of your home and not the market value. The latter is normally higher. You should take into account all garages and domestic outbuildings. Also allow an additional 15% to cater for professional fees such as architects and surveyors costs removal of debris and site clearance.

The home together with its permanent fixtures and fittings, usually including:

domestic outbuildings
swimming pools
tennis courts
paths, drives, patios and terraces
walls, gates and fences
and fixed fuel tanks

Which you own or which you are legally responsible for, within the premises.

Contents

Contents include all household goods and personal effects such as clothing which are within your home and belong to you. You should avoid underinsurance by adequately insuring your contents. The figure should represent the replacement cost of the contents if they were bought new today. The only items where wear and tear is taken into account are clothing and floor coverings.

New for old

Many house policies provide cover to replace contents at today's price with no deduction for wear and tear. Some exclusion applies such as clothing, floor coverings, please see quotation notes for details.

Standard construction

Built of brick, stone or concrete and roofed with slates, tiles, asphalt, metal or concrete. Some timber-framed properties are also considered standard.

Sum insured

The amount for which each section is insured. This will be shown in your insurance policy schedule when you take out a home insurance policy.