The A – Z of common home & contents insurance terms ACCIDENTAL GLASS CONTENT BREAKAGEThe accidental breakage of glass contents or glass forming part of contents. Glass contents may include such things as light fittings, glass in furniture and mirrors. It does not usually mean glass in televisions or VDU's or small glass items such as crystal and ornaments. ANTIQUES, COLLECTIONS, MEMORABILIA For these items, new for old cover means that if the item cannot be replaced or repaired under the new for old specifications, your insurer will pay you what it would have cost to buy the item immediately before the loss or damage occurred, but your insurer will not pay more than the sum insured for that item. BUILDING REPLACEMENT VALUE The amount it would cost you to totally rebuild your home at today's prices, including any home improvements you have made. CERTIFICATE OF INSURANCE The Certificate of Insurance is given to you by your insurer for each period of insurance. It is an important document as it shows the cover you have chosen and other policy details. CONTENTS 'Contents' means your unfixed household goods and valuables and personal effects that you own including:
Contents you own in your caravan or annexe or garden shed or annexe (located on the site of the insured, unregistered on-site caravan) that are not fixtures or fittings and are described on your certificate of insurance. Contents do not include:
You have a Duty of Disclosure to tell your insurer everything you know or should know that is relevant to the insurer’s decision to insure anyone under the policy, including you, and on what terms. This includes matters they specifically ask about when you apply for a policy, or renew or alter your policy, and any other matters which might affect whether your insurer insures you and on what terms. The information you tell them can affect:
EVENT Event means accidental loss or damage, fire, theft or attempted theft, malicious damage or storm damage. Events must:
EXCESS
FAMILY Family is defined as your spouse, your partner or your de facto who lives with you, your parents and parents-in-law, your or your spouse's children, your brothers and your sisters. FLOOD COVER Defined as damage caused to home and contents caused by rain which results in pooling, overflowing or spreading of rainwater. This is quite separate from damage caused by the sea. If you have concerns in this area, check with your insurer. FORCED ENTRY Unlawful entry into your home, including entry by using stolen keys or picking locks. It does not mean opening an unlocked door or window. FUSION The actual burning out of an electric motor or its wiring caused by the electric current in it. Therefore the item you are claiming on must have a motor for the claim to be successful. Common items that may be subject to a fusion claim include washing machines, refrigerators, clothes dryers, freezers and pool motors.  HOME'Home' means your residential building and its domestic fixtures and domestic structural improvements, at the insured address, including:
A room or part of the Home used as an office for business activities. HOME OFFICE EQUIPMENT The following office equipment if used for a business activity (part time or full time):
If your home or contents are damaged or stolen, your insurer will replace them with new items or repair them with new materials that are available at the time of replacement or repair from Australian suppliers. OBSOLETE ELECTRICAL APPLIANCES For obsolete electrical appliances, such as outdated computers or TVs, new for old means replacing or repairing to an equal specification. If this is not available, it means to the nearest better specification available. It can be a different brand. OPTIONAL COVER This is extra cover above that already included in the standard policy. You can ask your insurer to add one or more optional covers to your policy for an extra premium. Sometimes an option might not be available. Your insurer will tell you if this is the case. If you choose and pay for an option:
For these items, new for old cover means that if the item cannot be replaced or repaired under the new for old specifications, your insurer will pay you what it would have cost to buy the item immediately before the loss or damage occurred, but your insurer will not pay more than the sum insured for that item. PERIOD OF INSURANCE The time you are covered by the insurance, as shown on your Certificate of Insurance. POLICY Your insurance contract. It consists of this PDS, your application for insurance and your latest Certificate of Insurance. PREMIUM The amount you pay your insurer for insurance. You also pay stamp duty, GST and any additional government charges, and Fire Services Levy (FSL) if applicable. PRODUCT DISCLOSURE STATEMENT (PDS) PDS is the name of the document that contains the terms of your insurance cover. It includes information that would have previously been available in the insurance policy booklet. It tells you what cover is provided, details of costs, fees and charges and other important information. It should be read together with your Certificate of Insurance. If there are any changes to your PDS, your insurer should provide you with a Supplementary PDS, or a new PDS. SUM INSURED The most you can claim. The amount is shown on the Certificate of Insurance or in the PDS. The sum insured includes GST. TOOLS OF TRADE Tools or equipment used for any business activity except for home office equipment. UNIT A home unit, flat, villa or townhouse subdivided according to state or territory strata or unit title laws, or similar laws. Home & Contents Insurance ... |
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