Glossary

A living, plain-English glossary of the insurance terms we use. Terms are added as we publish. Where a term has a different meaning in Scotland, Northern Ireland or elsewhere in the UK, we note it.

A

Average clause — a policy condition that reduces a claim where the sum insured is below the property’s full rebuild or replacement value, so you bear a proportion of the loss even when partially insured.

Accidental damage — unintended physical loss or damage to your property or belongings, typically as an optional add-on rather than a standard peril.

E

Escape of water — water leaking or escaping from pipes, tanks, appliances or fixed systems; one of the most common home insurance claims.

Excess — the amount you pay towards a claim before the insurer pays the rest.

F

FCA (Financial Conduct Authority) — the UK regulator for financial services firms, including most insurers and brokers.

FOS (Financial Ombudsman Service) — the free, independent service that resolves disputes between consumers and financial businesses.

S

Sum insured — the maximum the policy will pay for a claim, or the declared value of what is insured (for example the rebuild cost of a building).

Subsidence — downward movement of the ground beneath a building, typically covered as a defined peril under buildings insurance.

This glossary is illustrative and will be expanded. Suggest a term via our Contact page.