xx
Select Insurance Product Here
Property Resources -Insurance Industry and Financial Terms
Advertising
  Insurance Product Locator
  Use this Search facility or select from the Menu below
site search by freefind
Home
 

Landlord Rental Insurance HomeLet - Endsleigh -- Rentguard - Intasure -

  Landlord Rental Guarantee Insurance
 

Tenants Rental Insurance HomeLet - Endsleigh - Rentguard-

  Buy to Let Landlords Insurance
  Holiday Homes Property Insurance & UK & Overseas Property Insurance
  Second Home Property Insurance including chalet/cabin
  Home & Contents Property Insurance for the UK including Listed Buildings
 

Blocks of Flats Insurance

  Student Insurance - Property
  Business Insurance
  Northern Ireland Residents Insurance
 

Bicycle Insurance

  Car-Bike-Van- Caravan-Taxi- Motor vehicle Insurance
 

Holiday & Travel Insurance

Gap Year Backpacker Insurance
Car hire / van hire / motor home hire excess insurance
Car Hire / van Hire / Motorhome Hire / Minibus Hire Excess Insurance from Questor
Car Hire / Van Hire Excess Insurance from insurance4carhire

Pet Insurance

Business Insurance

Wedding Insurance

Boat Insurance

Health and life Insurance
Lifestyle Excess insurance
  Other Insurance
 
Advertising

 

 

 

 

Self drive hire vehicle company rental insurance


The following Insurance  and Financial terms are for guidance only and jml Property Services does not take any responsibility for their content or accuracy. Information on many of these insurance industry terms have been provided by HomeLet - Landlords and Tenants Insurance  

BLANKET INSURANCE - Coverage for more than one type of property at one location or one type of property at more than one location.

BROWN GOODS -  Used commonly as a generic term to describe  electronic goods such radios, televisions and computers etc (see also White Goods at bottom of these terms)

CERTIFICATE- Certificate of Motor Insurance which provides evidence that You have taken out insurance as required by law.

CONDITION - Is a clause in or in addition to the policy document, which places on the insured party an obligation. Failure to carry out this obligation could make the contract unenforceable. For example, theft cover may be a conditional on multiple tenanted properties having a separate lockable entrance for each tenanted property. Should it be found that one or more of the properties does not have a separate lockable entrance, in the event of a claim for theft, the insurer could refuse the claim.

CLAIM - The act of seeking redress from another

CLAIMANT -  Anyone who is making a claim. Specifically in this context, the insured person claiming on their insurance policy or someone claiming against the insured.

GENERAL INSURANCE - A term which distinguishes 'short term' insurance, such as property insurance or motor insurance, from 'long term' insurance, such as life assurance or pension assurance. The former is normally arranged on a renewable annual contract whereas the latter is a non-renewable contract which remains in force until the assured event occurs or the contract is cancelled or 'surrendered'

EMPLOYER'S LIABILITY INSURANCE - Insurance for emplyers in respect of their liabilty to employees for injury or disease arising out of and in the course of their employment. With some exemptions this insurance is complulsory in Great Britain and can only be provided by an authorised insurer.Insurance for emplyers in respect of their liabilty to employees for injury or disease arising out of and in the course of their employment. With some exemptions this insurance is complulsory in Great Britain and can only be provided by an authorised insurer.

ENDORSEMENT - A written form attached to an insurance policy that alters the policy's coverage, terms, or conditions

EXCLUSION - A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations

EXCESS -The first portion of a loss or claim which is borne by the insured. On some policies, an excess can be voluntary to obtain a premium reduction.You are responsible for the Excess even if the incident is not Your fault. The sum of money that you must pay towards the eventual cost of your claim. Strictly this is due at the beginning of the claim but is most often deducted at the end. The amounts involved vary from insurer to insurer and from section to section of your policy depending on your personal circumstances. It is important to check your policy in this regard.

EXCEPTIONS / EXCLUSIONS (above) - The insurer may want to exclude certain things or events relating to the insured peril. For example, damage to a property that has been unoccupied for more than x days. These are called 'exceptions' or 'exclusions' and will be brought to your attention in the policy document. N.B. No policy covers everything that might possibly happen. Only the perils written in the policy are covered and nothing else.  

INSURABLE INTEREST -The legally recognised relationship between the insured and the financial loss the insured suffers in the event of an insured event happening. You can therefore only insure something in your own name if you were to suffer financially in the event of an insured incident occurring.

INSURANCE PREMIUM -The periodic payment made on an insurance policy, called a premium.

INSURERS  RIGHT OF SUBROGATION -  In certain circumstances, someone who suffers loss or damage as the result of another's actions may have a right of recovery from some other source. It is not lawful to recover and retain the same amount from more than one source. For example, an insured person cannot recover and retain his/her losses from both an insurance policy and from any other party who may be liable. However, an insurer who has accepted and paid the insured party's claim has the right to recover their loss from the third party direct. This is called the insurers right of subrogation.

INDEMNITY / INDEMNIFY  - A principle whereby the insurer seeks to place the insured in the same position after a loss as he occupied immediately before the loss (as far as possible). Insofar as insurance practice is concerned, indemnity has been described as "Placing the claimant into the same financial position after the insured event as he enjoyed immediately before the event". In respect of property insurance for instance, this means meeting the cost of repairing an item, or of replacing it, or by paying a sum equal to the value of the damaged item. Check the policy wording in all cases.

LIMIT OF INDEMNITY -  The maximum amount that will be paid under the terms of the policy per claim, per series of claims or for a fixed period of time.

LIQUIDITY - The liquidity of an investment refers to its accessibility and how easily it can be turned into cash. Some assets owned by banks cannot be turned into cash very easily, but are instead vauluable over time. These assets are said to have a low liquidity due to their inaccessiblilty in times of urgency, when money is needed.

MATERIAL FACT - Any fact which would influence the insurer in accepting or declining a risk or in fixing the premium or terms and conditions of the contract is material and must be disclosed by a proposer, or by the insurer to the insured 

NATIONALISATION -  The act of bringing an industry or assets like land and property under state control.

NEGLIGLENCE - In its broadest sense, carelessness. The failure by a reasonable person to use sufficient care, diligence and skill which is required for the protection of others from injury or damage. 

NON-DISCLOSURE -  A failure to disclose a material fact to the underwriter. Non-disclosure entitles the underwriter to summarily void (make unenforceable) the contract.

PERIL - Any event that could cause loss or create a liability to the insured, e.g. fire, storm, negligence, etc.

POLICY OF INSURANCE - (Insurance Policy) Together with the Schedule of Insurance the policy document (Policy of Insurance) is the written evidence of a contract of insurance. It is not, of itself, the contract between the parties. The contract exists and is legally enforceable from the moment the insurer agrees to provide the insurance and the insured party pays the premium. Nevertheless, in the event of a dispute between the insured party and the insurer, the policy document, along with the Schedule of Insurance, will be assumed to represent the agreement reached by both parties.

PREMIUM - The sum of money charged in return for providing the insurance. A proportion of all premiums collected are placed into special funds called underwriting reserves. These funds will be called upon to pay future claims. From time to time underwriters are asked to insure risks/perils which are new to them and to the insurance market as a whole. Since historical statistics will be limited or non-existent, the underwriters' risk-assessment for the new risks/perils is likely to be conservative. This inevitably means that to begin with premiums are set at a level that may, or may not, prove to be high.

PROPOSAL - A request to an underwriter to grant insurance cover. The underwriter is not obliged to accept the proposal until he/she has assessed the risk and set the terms and premium, or at all. Only after the terms and premium have been assessed, communicated and agreed by the proposer will the underwriter accept the proposal.

PROPOSER - The person, persons or organisation who request insurance. Only after the underwriter accepts the proposal, either verbally or by word of mouth, does the insurance come into force.

PROPOSAL FORM - The document which insurers send to a proposer to complete before the insurance is assessed and granted. Most require you to sign a ‘declaration' in which you declare that you have fully completed the form and have answered all its questions truthfully. If you fail to do so any subsequent claim may be refused.

In recent years, due to the advent of electronic and call centre quotations, fewer proposal forms are issued. In their place the insurer will send you a written summary of the information they say you gave them. If you do not correct any wrong information at that time, and it later is shown to be incorrect or wrong, the insurer will be entitled to refuse any claim you may make.

All information given in a written proposal form, electronically or by word of mouth to a call centre, is the basis of the contract between the proposer and the insurer.

PROXIMATE CAUSE -  In the event of a claim, the proximate cause of the damage or liability suffered must be shown to have been an insured event. That is to say, there must be an unbroken chain between the insured event and the loss without the intervention of any other excluded or uninsured event. If there is an intervention, and that event is not insured by the policy, only the damage or liability caused directly by the original event will be covered.

For example, a fire causes relatively minor damage to the insured property until it reaches a store of butane gas cylinders, which then explode causing extensive and major damage. It is found that, being aware of the increased risk of the butane gas, the insurers of the property had excluded explosion damage. In this event, only the damage caused by the fire before the intervention of the explosion will be met by the policy.

REINSTATEMENT - Making good. Where insured property is damaged, it is usual for settlement to be effected through the payment of a sum of money, but a policy may give either the insured or insurer the option to restore or rebuild instead 

RISK - is strictly, a term that describes the chances of an event taking place. Sometimes it is used loosely to describe the event itself. The statistics needed to make the risk-assessment are collected from the experience gathered by each individual insurer. This is one of the reasons that premiums vary from insurer to insurer.

RISK ASSESSMENT - A process whereby the underwriter calculates the probability and frequency of a particular event happening, generally and in particular. To make this risk assessment accurately, the underwriters need large volumes of statistics going back over a number of years. The premium charged will be calculated from this assessment.

SCHEDULE OF INSURANCE - Is a document that always accompanies the Policy of Insurance. It contains all of the specific details relevant to the insurance contract in question, i.e. the name and address of the insured party; the period of the insurance; the nature of the property or peril being insured; the sum insured if relevant, the sections of the policy which apply; and any special terms, exclusions or conditions imposed. In law, it forms an integral part of the Policy of Insurance document and will be read as such.

SHORT-SELLING - This involves selling borrowed shares in the hope that the price will fall and they can be bought back at a profit later on. The Financial Services Authority has tried to clamp down on the Short-selling of bank shares due to the detrimental effects that it can have on the market.

STATEMENT OF FACT- A statement provided to the insurer at the inception and renewal of the policy that confirms that the facts provided by policyholder are true and accurate. This can be an alternative to a fully completed and signed proposal form

SUB-PRIME MORTGAGES - Mortgages that carry a higher risk to the lender (and therefore tend to be at higher rates) because they're offered to people who may have had financial problems or who have low or unpredictable incomes.

SUM INSURED -  It is one of the factors used by underwriters to calculate the premium chargeable. Broadly speaking, it represents the full ‘value' of the property being insured. Although it can, and often does, represent the maximum amount payable for that property, it does not necessarily do so. Check the wording of the policy document. See also Average and Limit of Indemnity

TERRITORIAL LIMITS - The geographical area(s) in which an incident that may give rise to a claim must occur for the insurance to operate. In policies written in the UK, these limits are invariably stated in the policy document. The most common areas listed are Great Britain, Northern Ireland, the Isle of Man and the Channel Islands. Some may include Eire (Southern Ireland) but this must not be assumed. On request it is possible to extend the limits shown in the policy, but if the insurer agrees to the request it is likely that an additional premium will be involved.

THE INSURED/POLICYHOLDER - Are terms commonly used to describe the person or persons who are insured by a policy of insurance.

THIRD-PARTY COVERAGE - Liability coverage purchased by the policyholder as a protection against possible lawsuits filed by a third party. The insured and the insurer are the first and second parties to the insurance contract. This term is often referred to in motor insurance.

UNDERWRITER - The person, persons or organisation who assesses the risk and sets the terms and premium charged for a policy of insurance.

UMBRELLA POLICY - Coverage for losses above the limit of an underlying policy or policies such as  motor insurance or home insurance.

UTMOST GOOD FAITH  -  The general rule of law which governs most standard contracts places an obligation on both parties to the contract to act in good faith, i.e. they must be reasonably honest in their dealings with each other and must not lie or deliberately conceal information. They do not have to reveal information that the other party could be expected to know or readily find out. This general rule is often known as caveat emptor or "let the buyer beware".

Because insurance contracts are essentially contracts of trust, they are one of the exceptions to this rule. Both parties are obliged to act in utmost good faith, i.e. they must be absolutely honest with each other. Not only must they not lie or deliberately conceal information, they are obliged in law to reveal each and every fact that is material to the contract.

Both parties are subject to this rule but since, in most cases, only the proposer has all the facts and information material to the risk available, the underwriter has to rely on the proposer to pass this information on.

For most insurances of interest to private landlords, it is accepted that, in practice, only questions asked by the underwriter will normally be considered as being material.

WAIVER- Information on this page is given without responsibilty for accuracy and should not be reffered to as any statement of fact. 

WHITE GOODS - (see also Brown Goods at top)  Used commonly as a generic term to describe kitchen and bathroom apparatus, such as washing machines, refrigerators, cookers etc. There is no legal backing for these terms and the apparatus need not be white.

N.B. This information should not be relied on for accuracy and is presented here without the responsibility of jml Property Service and the website it is being displayed at. jml property Services 01/ & 11-09


See also

Lettings jargon in the UK

Property jargon in the UK Housing Market

Building jargon used in the property market in the UK

The Role of the Solicitor for buying and selling property in England and Wales

Condensation Problems in Rental Property

Buy To Let - UK & Housing Act 2004

Buy To Let - Europe

Buying in France

Renting In Ireland

Information for landlords letting or thinking of letting a House in Multiple Occupation (HMO) - New Rules for Landlords - Anti-Social Behaviour Act (Scotland) 2004

Personal safety for Letting Agent and Estate Agents

Advice for tenants

Advice for landlords

How to present your rental property for letting

How not to present your rental property for letting

Electrical Safety Regulations in England and Wales

Property Misdescriptions Act 1991

EPCs Energy Performance Certificates for rental property in England and Wales started 1st October 2008...more information here

Building Energy Rating - Certificates in Ireland (BER) for all lettings and property sales from the January 2009

EPCs from the end of December 2008 in Northern Ireland

EPCs from the 4th January 2009 in Scotland

Looking for Landlords Insurance? More Information Here

Looking for Tenants Insurance? More information Here

Holiday Home Insurance More Information Here

Looking for Car Hire Excess Insurance? More information Here

Travel Insurance More information Here

 


Want to know what is happening in the Property Market?

Find out more here


the low cost villa advertising service

Advertise your  Holiday Home Property for just 11.75 per year including VAT- CLICK HERE for Details


 

Do you own more than Two Rental Properties - Want to save money? Click on Logo Below


Property Insurance

__________________

UK main residence Property Insurance


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact Us | Privacy Statement | Terms of Use | Site Map| About us | jml Property Insurance Press Room
jml Property Insurance.co.uk /jml Property Services acts purely as an online web promotion service for insurance companies. We are not insurance brokers and are unable to offer advice or deal with any of our advertisers enquiries. It is not an insurance comparison price website.. All dealing must be with the insurance company that you will gain access to via a link from this website. jml Property Services are unable to give advice either verbally or in writing regarding insurance or assist with changes to insurance policies that you have taken out. You must contact the insurer direct. We are therefore unable to provide any quotes ourselves as we would be breaking the law.

IMPORTANT NOTICE: By continuing to use this website you shall be deemed to be bound by and to have accepted our Terms of Use - Privacy - Cookies

jml Property Services is a trading name of Jeffrey Milner Ltd - PO Box 80 - Princes Risborough - Buckinghamshire - HP27 0WA - England - Established 1979

jml Property Services are members of Riviera Business Club RBC in the Cte d'Azur France 

2004 - 2017 jml Property Insurance - Regularly updated - All rights reserved

Find us at | | |