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A To Z Guide To Insurance Claims Jargon!
Decode The Terms Insurers Use So You Never Feel Lost Again.
Written by Darren Carter. Last Updated on September 24, 2026
Home and Business Insurance Policy Jargon A to Z.
Insurance policies and claims can contain terminology that is difficult to understand. Knowing what common insurance terms mean can make it easier to read your policy, understand insurer correspondence and ask informed questions.
This guide explains common home and business insurance terms in plain English. It can also help you identify policy wording or claim issues that may need further clarification.
Tips for Understanding Cover and Insurance Claims
Understanding the cover you are buying can help you make more informed decisions before a claim occurs. Check important limits, conditions and exclusions, and ask your insurer or broker about anything that is unclear.
If you later need to make a claim, understanding the terminology in your policy can also make insurer correspondence and claim decisions easier to follow.
A to Z of Insurance Terms
Accidental Damage
This is usually available as an add-on with most standard insurance policies. It usually protects both contents and the building against damage that you or someone else has caused by accident. This may be accidentally bursting a pipe with a nail or knocking a tin of paint over.
Act of God
An “Act of God” is a traditional expression for an exceptional natural event outside human control, such as a severe storm, flood, earthquake or lightning strike. War would not normally fall within this definition.
Modern insurance policies generally describe the specific events they cover or exclude rather than relying on the phrase “Act of God”. Whether damage is covered therefore depends on the individual policy wording, exclusions and circumstances of the loss.
Alarm
This is a device that visually may potentially prevent your property from being burgled. If someone does break in then it will sound a very loud noise and may even automatically make the police, your alarm provider or yourself aware that you may be being burgled. Also, it may help you to lower the cost of your insurance policy.
Amendment
This would be a change to your existing policy. For example; if a conservatory was added to your property, your policy should need to be amended to include this as the risk to the insurance provider may be increased.
Annual Premium
The annual cost of your home or business insurance, as set by your insurer and based on the level of cover and any added extras you may have.
Broker
An insurance broker can help you to find the right coverage and price for your policy. They can even help you if you are unfortunate enough to have to make a claim. With the emergence of price comparison websites, more people are using them instead to find the best deal for their home insurance.
Buildings Cover
This covers the building itself along with any permanent fixtures and fittings that you are legally responsible for. This should include fitted baths, toilets and kitchens. Insurance policies can also include garages and outbuildings such as sheds or greenhouses.
Cancellation
This is if you end your insurance policy before the end of its cover period. Generally, you may be charged a cancellation fee which will be stated in your terms and conditions. This may be a fee plus a fixed amount of notice period that is charged.
Certificate of Insurance
A certificate of insurance is a document that provides evidence of particular insurance cover. The documents supplied will depend on the type of insurance and the insurer.
If you have a mortgage, your lender will normally require suitable buildings insurance to be maintained. Check the lender’s requirements and the insurance documents it needs as evidence of cover.
Claims History
Your previous insurance claims may affect the premium, terms or cover offered by an insurer. How far back an insurer asks about claims will depend on its questions and underwriting criteria.
It can still be sensible to compare prices and cover at renewal. However, FCA pricing rules mean that a renewing consumer home-insurance customer should not be quoted more than the equivalent new-business price through the same sales channel simply because they are renewing.
Compulsory Excess
A compulsory excess is the amount set by the insurer that you must contribute towards a claim where that excess applies. Unlike a voluntary excess, you do not choose the compulsory amount.
Contents Cover
Contents insurance covers belongings in your home, subject to the policy terms, limits and exclusions. It can be bought separately or as part of a combined buildings and contents policy.
Higher-value belongings may be subject to single-item limits or may need to be specified individually. Always check the policy limits if you own jewellery, artwork, technology or other valuable items.
Cover Limits
A cover limit is the maximum amount available under a particular part of an insurance policy. Different limits may apply to buildings, contents, individual items or particular types of loss.
If the sum insured is too low, underinsurance may become an issue. Depending on the policy wording, this can affect the amount available when a claim is made.
Due Diligence
Insurance policies may require policyholders to take reasonable precautions, maintain the property or comply with particular security and risk-management conditions. The precise requirements depend on the policy.
A failure to meet a policy condition does not mean every resulting claim will automatically be rejected. The wording of the condition, the circumstances of the loss and its relevance to the claim can all matter.
Excess
An insurance excess is the part of a claim that the policyholder is responsible for paying. A policy may include a compulsory excess set by the insurer and a voluntary excess chosen by the policyholder.
Some types of claim, including subsidence or flood claims, may have different or higher excesses. Check the policy schedule for the amount that applies.
Exclusions
Exclusions describe events, losses or circumstances that the policy does not cover. They vary between insurers and policies, so the exact wording is important.
Unoccupied properties are a common example. A policy may reduce or restrict particular types of cover after a stated period or impose additional conditions while the property is empty.
Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is an independent service that can consider eligible complaints about insurers and other financial businesses. Consumers normally need to give the financial business an opportunity to deal with the complaint before referring it to the FOS.
The service is free for consumers and certain other eligible complainants. It is funded mainly through levies and case fees paid by financial businesses and, in some circumstances, professional representatives. Our Financial Ombudsman Service guide explains the insurance complaints process in more detail.
Home Emergency Cover
Although some insurance policies will include a certain level of emergency coverage, generally, this is an optional extra. This may cover you for unexpected emergencies such as a boiler breakdown or the immediate aftermath of a water leak where your insurer may send out a plumber within a short period of time. In this case, it could also be beneficial to your insurer as the quicker the problem is rectified; the less damage may be caused.
Legal Expenses
Legal expenses insurance may be included within a policy or offered as an optional extra. It can cover certain legal costs and disputes, subject to the policy terms, limits and exclusions.
Cover can vary significantly. For example, the policy may contain an excess, financial limits, requirements about the prospects of success or rules about which legal representative can be appointed. Check the wording before assuming that a particular dispute or legal cost is covered.
Loss Adjusters and Loss Assessors
A loss adjuster is a claims professional who investigates and assesses insurance losses. A loss adjuster may be appointed by an insurer or, in some cases, directly by a policyholder.
The terms “loss assessor” or “independent loss adjuster” are commonly used for claims professionals appointed by the policyholder. However, terminology can vary, so the most important questions are who appointed the professional, who gives their instructions and whose position they are engaged to represent.
Our guide to insurance loss adjusters and independent policyholder representation explains this distinction in more detail.
If you need professional support with the claim itself, our insurance claims management service explains how ILA can help prepare, present and manage a property insurance claim.
New for Old
“New for old” means that, where the policy provides this basis of settlement, an insurer may replace a lost or damaged item with a new equivalent or pay the amount required to replace it. Limits, exclusions and other settlement conditions can apply, so check the individual policy wording.
No Claims Discount
A no-claims discount may reduce an insurance premium after one or more claim-free years. The size of the discount, the maximum available and what happens after a claim vary between insurers.
There is no standard rule that every home insurer provides a 10% discount for each claim-free year, so check how the particular insurer calculates its no-claims discount.
Obligation to Notify
When arranging or changing consumer insurance, answer the insurer’s questions accurately and take reasonable care not to provide misleading information. Business insurance has different disclosure requirements, including the duty of fair presentation before the contract is entered into.
During the policy period, check the policy for changes that the insurer requires you to report. Depending on the policy, these might include significant building work, a change in occupancy or a change in how the property is used.
Do not assume that every personal or financial change must automatically be reported unless the insurer asks for it or the policy requires notification. Equally, failing to provide information does not mean every later claim will automatically be rejected. The consequences depend on the information, policy wording and circumstances.
Optional Extras (Ancillaries)
These can be added to your policy in the time between when you receive your original quote and then take out your policy. It could be something such as legal cover or home emergency cover and you choose if you would like to pay extra to have them included within your insurance cover.
Period of Cover
The period of cover is the period during which the insurance policy applies. Many policies run for 12 months, but the exact start and end dates will be shown in the policy documents.
If a property becomes unoccupied, its use changes or circumstances alter during that period, check the policy conditions and contact the insurer or broker where required. Specialist or short-term insurance may sometimes be appropriate, depending on the property and circumstances.
Policyholder
The person or business who takes out the cover.
Rebuilding Costs
Rebuilding cost is the estimated cost of reinstating a property if it is badly damaged or destroyed. It is different from the property’s market value.
The calculation can include demolition, site clearance, labour, materials, professional fees and other costs needed to reinstate the building. Extensions, garages and other structures may also need to be considered. Our rebuild cost assessment guide explains why the correct figure matters for buildings insurance.
Quote
An insurance quote is the price an insurer offers for specified cover based on the information provided. Quotes may be valid for a limited period and can change if the information, cover or risk changes.
It is sensible to compare both price and cover rather than focusing on premium alone. For consumer home insurance, FCA rules also restrict insurers from charging renewing customers more than the equivalent new-business price through the same sales channel simply because they are renewing.
Specified and Individual Items
Specified items are belongings that are individually listed on an insurance policy, often because their value exceeds the policy’s standard single-item limit or because particular cover is required.
The limits, excesses, valuation requirements and cover available for specified items vary between policies. Check the policy schedule and wording for the amount insured and any conditions that apply.
Need Help With an Insurance Claim?
Home and business insurance claims can become difficult when policy wording, evidence, repair costs or insurer decisions are unclear. In larger or more complex property claims, some policyholders choose professional claims support to help them understand the position and manage the information required.
Get A Professional Working on Your Side
Independent Loss Adjusters acts for policyholders rather than insurers. If appointed, we can help review the claim position, organise relevant evidence and communicate with the insurer about property damage, repair costs and settlement issues.
Professional representation does not guarantee that a claim will be accepted or that a particular settlement will be achieved. The outcome depends on the policy wording, evidence and individual circumstances.
If you are dealing with a property insurance claim and would like to understand how ILA may be able to help, call 0800 002 5178 for free initial insurance claim advice.
Darren Carter
Head of Marketing & Technology, Independent Loss Adjusters
Posted by Darren - Over 15 years' experience in online marketing within the insurance claims sector and works with ILA's loss adjusters and claims professionals to turn practical claims knowledge into clear, useful guidance for policyholders.
Customer Testimonials
Feedback From Clients Who Needed Claim Support
Property insurance claims can quickly become confusing when there are delays, unclear decisions or disagreements over the settlement. These testimonials show how Independent Loss Adjusters has helped clients feel better informed, better supported and more in control of the claim process.
“Michael dealt with our case in such a very professional manner, providing excellent advice and valued assistance. What really mattered here was Michael had a real connection to us, offering true empathy to our case and real sincere desire to help us to the best of his ability.”
“We were at the end of our tether with the communication problem with the insurance and their appointed assessor. We contacted ILA and got an independent assessor Glenn Weatherall and his assistant, they couldn't do enough for us."
“All dealings with ILA were fantastic, timely, compassionate and steadfast in fighting for your rights, above those of the Insurance Companies. I dread to think how badly the outcome could have been had I stuck with the insurance companies own Loss Adjuster.”
“From the first call they just knew what they were doing. They were easy to talk to, always kept me updated and nothing ever felt like too much trouble.”
“Michael will do the job to the end he is a professional in his work. Thanks to his team all my problems were solved.”
“Choosing ILA, with Glenn guiding us through the complex insurance claims process, was the best decision we made. We cannot imagine navigating this ordeal without the assistance of Glenn, Sue, and the entire ILA team.”
These testimonials describe individual clients’ experiences. Outcomes depend on the policy wording, evidence and circumstances of each claim.
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Practical home insurance claim tips covering policy wording, evidence, inspections, repair proposals and settlement decisions, with steps to help present relevant information clearly.
Is Your Insurance Claim Becoming Difficult?
Claim rejected, delayed, under investigation or offered a settlement you’re unsure about? Our guide covers what to check next, underinsurance and help with an existing claim.
Explore Common Claim Problems
Loss Adjuster Support
Understand the difference between insurer-appointed and independent loss adjusters, what each role involves and when independent claim support may be appropriate.
Loss Adjuster Guides
Guidance on Making a Claim
Practical guidance on preparing, documenting and progressing an insurance claim, including what to do when questions, delays or disputes arise.
Making a Claim Guides
Insurance Terminology
Clear explanations of common insurance terms, policy wording and claims terminology to help you understand correspondence, decisions and the claims process.
Insurance Terminology GuidesCLEAR, PROFESSIONAL CLAIM SUPPORT
Why Policyholders Speak to ILA
A difficult claim often involves policy wording, technical evidence, repair costs and several parties. Our Loss Adjusters help policyholders understand the position and approach the next step with clearer information.
Policyholder-Focused
ILA is appointed by homeowners, landlords and businesses, not by the insurer handling their claim.
Experienced Claims Team
Our team brings experience across insurance claims, loss adjusting, damage assessment and settlement review.
Evidence-Led Guidance
We review the policy, correspondence and available evidence before explaining what appears clear and what may need further work.
FCA Authorised
Our regulated status supports clear information, appropriate conduct and fair treatment throughout the customer journey.
Independent Loss Adjusters Ltd is authorised and regulated by the Financial Conduct Authority for insurance distribution activities.
Need Clearer Direction on Your Claim?
Tell us what has happened and where the claim currently stands. We will review the initial information and explain whether ILA may be able to help.
Every claim depends on its individual circumstances, supporting evidence and policy wording. No particular outcome can be guaranteed.
PROPERTY DAMAGE CLAIMS
Help with Property Damage Claims
Different types of damage bring different questions about evidence, repairs and cover. Choose the claim type below to see how ILA may be able to help.
Flood Damage Claims
We can help assess water damage, organise the evidence and present the claim under your policy.
Flood Damage Claim Help
Fire Damage Claims
We review the damage, repair scope and reinstatement costs to help you understand the claim position.
Fire Damage Claim Help
Business Interruption Claims
We assess the interruption, financial records and policy position when insured damage affects trading.
Business Interruption Help
Malicious Damage Claims
We review the damage, circumstances and evidence after vandalism or deliberate damage.
Malicious Damage Claim Help
Impact Damage Claims
We can assess collision or impact damage and review the repair evidence and settlement position.
Impact damage claim help
Theft Insurance Claims
We help organise supporting evidence and review the claim position after burglary or theft.
Theft Claim HelpRequest Free Initial Insurance Claim Advice
Tell us what happened and where your claim stands. The initial conversation is free and without obligation. We’ll ask a few questions and explain whether ILA may be able to help. You can call us or complete the form; we’ll contact you using the details you provide.
If you choose ongoing support, we’ll explain the service and fee before work begins. Our general fee is 10% plus VAT of the overall settlement. Where you appoint ILA’s recommended contractors for the agreed reinstatement works, our fee is generally covered through that contractor route. The position depends on your claim and the proposed work.
What Happens After You Request a Callback?
When we speak, we’ll ask a few initial questions about the damage, your insurance policy and the current position of your claim.
You don’t need to have every document ready. The first conversation is simply to understand what has happened and whether we may be able to help.
If you’d prefer to speak to us directly, call 0800 002 5178.
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