Money - The money definition within an insurance policies will usually cover cash, cheques, traveller’s cheques, premium bonds and national savings stamps and certificates, postal and money orders, gift vouchers, tokens, luncheon vouchers, travel tickets, sports season tickets, phone cards and mobile phone top up vouchers.
New For Old - Normally associated with household contents insurance, it is where the insurer will pay for a claim based upon the replacement value of the item without taking into consideration any deduction for depreciation. Various conditions can be involved and each contract should be considered carefully.
Non Standard Construction - The description of a building which does not conform to the minimum specification of construction.
Peril - Describes a contingency which is covered by the policy and which relates to a possible cause of loss.
Proximate Cause - A famous law case describes proximate cause as active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent.
Subsidence - This is defined as the downward movement of the bearing soil on which a building rests. There are many possible causes for a bearing soil to fail. It is possible for subsidence to occur progressively over a long period, to occur over a very short period and then stop, and other variations on this theme.
Territorial Limits - The geographical limits within which an insurance operates.
Utmost Good Faith (Uberrima Fides) - A contract of insurance is a contract of utmost good faith, meaning that both parties to the contract have a duty to disclose all material facts relating to the proposed insurance. Any breach of this duty by the proposer may enable the underwriter to deny liability.
United Kingdom - England, Scotland, Wales, Northern Ireland, the Isle of Man and the Channel Islands.
Valuables - Jewellery, watches, furs, articles mad of gold, silver and other precious metals, gemstones, photographic equipment, pictures and other works of art.
Voluntary Excess - The insurer will grant a discount in premium if the proposer elects to pay the first portion of any claim himself. Any voluntary excess would be in addition to any compulsory excess which applies to the policy.
Warranty - This is a condition imposed by the insurer on a policy. A policyholder has to adhere to the conditions of the warranty for cover to operate and any breach enables the insurer to avoid a claim.