Getting to grips with the jargon
When you’re trying to navigate the complex world of strata insurance, you’re bound to come across a lot of technical terms and industry jargon. We’ve simplified the main things you need to know below.
Independent intermediary who sells policies from different insurance companies.
The insurance company that provides your insurance policy.
Duty of disclosure
You must tell an insurer everything relevant to its decision to insure you. It will impact your premium and may lead to special conditions on your policy.
If you don’t tell an insurer important information relevant to your property, you haven’t complied with your duty of disclosure and an insurer may not pay a claim.
The number of claims you’ve made and what you’ve claimed for provides a picture of your potential risk.
The maximum amount your insurer will pay for a claim.
The process an insurer uses to work out your level of risk and calculate the premiums it will charge you to insure that risk.
Occurs when your sum insured isn’t enough to cover the value of the items you’re insuring.
Checks claim details and determines the insurer’s liability for loss based on the terms and conditions of your policy.
Submitted after a loss is suffered.
What you receive from an insurer when your claim is agreed and processed. Can be a repair or financial payout.
Any amount you must pay towards a claim and is usually deducted from any settlement amount.
Your insurance policy
A contract between you and the insurer that details the circumstances for which you’re covered or not covered.
Certificate of Insurance
Legally required proof that you have an insurance policy in place.
The amount you pay your insurer for coverage.
Includes the risks you’re insured against, the properties covered, the people insured and the limits of compensation.
The occurrences that cause loss and damage listed in your policy.
Exposure to a specific threat, hazard or peril that might cause injury or financial loss.
Types of cover
A compensation payment that protects you against damage or loss so you remain in the same state or financial position you were in before a loss.
Being financially or legally responsible for something.
Covers a person or organisation’s liability to another person or organisation for causing injury or property damage.
Insurance for insurance companies. It’s used to lower their risk or reduce their exposure to a specific catastrophic event.