House and Contents Insurance
House and Contents Insurance Jargon Busting
When looking around for the best house and contents insurance you may come across some terms you aren't familiar with. Terms like new for old, voluntary excess and accidental damage might be commonplace for a seasoned insurance expert but for newcomers to the market they may represent further confusion.
Getting to grips with these important house and contents insurance terms should considerably help you understand what your policy covers. If in doubt, please check with your insurer for any specific exceptions to your individual policy and what it covers.
New For Old
Whenever you see the term 'new for old' in your house and contents insurance policy it generally means any damaged or stolen goods covered by your insurance will be replaced with a brand new item of equivalent quality or specification. So for instance, if you have a three-year-old television damaged by flooding, the insurer is likely to replace it with a brand new version of the equivalent model.
A common exception is household linen and clothes which can be subject to a deduction to allow for general wear and tear.
Accidental Damage
It is fair to say that sometimes accidents do happen. This is why accidental damage for house and contents insurance can prove to be a valuable addition to a policy. So for example with UIA's policy, if you accidentally spill some red wine on your cream carpet or slip and accidentally put your foot through the ceiling whilst in the loft you are covered with accidental damage protection.
Voluntary Excess
Voluntary excess is the extra amount you agree to contribute when making a claim, in return for a discount on your premium. Usually, the compulsory standard excess is £100 but you can choose to pay more. Just be mindful that should you need to make a claim, you are liable to pay the extra on top of the standard. So, if you choose a voluntary excess of £100, when making a claim following an insured event, you will pay the first £200 (standard £100 plus the £100 voluntary) with the insurer covering the rest. However, it can be a great way to reduce your premiums.
Specialist Items
These are the items you need to notify your insurer about if you want them covered by your house contents insurance. Typically they fall under two main areas - cover for items taken away from the home and high risk items.
- Away From Home cover
Whenever you come across the term, 'away from home', in a house and contents insurance policy it will often be referring to personal possessions that can be taken out of the insured property like handbags, coats, laptops, bicycles, mp3 players and mobile phones for example. These may have a limited amount of cover, for example with UIAs web policy you can only insure up to a maximum of five bicycles. - High Risk Items (sometimes referred to as 'valuables')
Like its name suggests, 'high risk items' are generally seen by insurers as contents that will be expensive to replace or repair or that will increase the threat of theft. They generally include items such as jewellery, items of gold or silver or works of art. It can also relate to fragile items like china or glass antiques for example.
To discover what UIA's policy covers, get a house and contents insurance quote online and you could save 15%.