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You can use our glossary
to find the definitions of many terms you will come
across when arranging a secured homeowner loan
Click on a letter A
to Z for terms beginning with that letter
P
Persistency
the length of time insurance remains
continuously in force with a company.
Policy
the legal document issued by the insurance
company to the policyholder, which states the terms
and conditions of the insurance
Policy exclusions
events not covered by your policy.
Policy schedule
a document detailing how much cover
you have, any discounts
you have, and the premiums you pay.
Policy term
the period of time for which an insurance
policy provides cover.
Policyholder
the person to whom the insurer issues
the policy and usually the person covered by the policy.
Premium
the single or regular payment made
to an insurance company in respect of an insurance policy.
Public liability policy
covers legal liability for injury or
damage caused to others.
Q
Quotation
quotations are provided to show the
costs of insurance cover and the quotation document
forms the basis of a new contract or the renewal of
an existing one. It contains details of the conditions,
benefits, caveats
and premiums for the policy.
R
Reinsurance
the practice whereby one insurer transfers
part or all of the risk it has accepted to another insurer
(the reinsurer).
Renewal
an agreement to extend insurance beyond
the original term.
Rescission
termination of insurance by the insurance because a mis-statement by the insured.
Retention
the amount of risk retained by the insurance company and not reinsured.
Retrocession
the process by which a reinsurer obtains reinsurance from another company.
Rider
an amendment to an insurance policy that modifies the policy by expanding or restricting
its benefits or excluding certain conditions from coverage.
S
Settlement
when an insurer pays a claim.
Substandard risk
the risk of a claim against a policy is higher than the average.
Sum insured
the maximum limit that an insurance company will pay for any claim.
Surrender
the cancellation of a policy, usually receiving a reduced payout.
Surrender value
the amount received when converting a policy into cash, often zero.
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Home insurance guide
