Insurance texts are not complicated – they are simply built from compact technical terms. This crash course translates 15 expressions into everyday language: with that much, the policy, the quotes and the rest of the Insights articles all read fluently. For a deeper dive, there is the full glossary.
In brief:
- 15 key terms, each in one clear sentence – from the sum insured to building liability.
- The terms are unpacked in more depth in the Insights articles – the links lead there.
- If an unfamiliar expression turns up in a quote, do ask about it. The mark of a good adviser is that they explain things gladly.
The property side
- Sum insured: the upper limit of the cover – the insurer stands behind losses up to this value; for a building it has to track the rebuild cost. (sizing it)
- Rebuild value: the amount for which the building could be rebuilt exactly as it was – not the same as the market price. (the difference)
- Underinsurance: when the sum insured falls short of the real value – the insurer may then settle proportionally. (the rule)
- Proportional settlement: with underinsurance, only that share of the loss is paid which the sum insured bears to the real value.
- Indexation: an adjustment of the sums and the premium at the renewal date, following the change in construction costs. (value maintenance)
- Deductible: the first part of a loss, borne by the building – a fixed amount, a percentage or a combination of the two. (deductible logic)
- Limit: an individual cover's own ceiling within the sum insured – for glass breakage or vandalism, for example.
The cover side
- Natural perils: the range of natural and basic risks – fire, explosion, lightning, storm and their peers. (detail)
- Water damage from pipes: damage caused by water escaping from the building's pipework – the most frequent loss event in condominiums. (detail)
- Building liability insurance: it is there for the case when the building causes damage to someone else – with falling plaster, for example. (detail)
- Exclusion: a situation named in the policy terms for which the insurer does not pay – damage arising from a lack of maintenance, for example.
- Additional cover: extra protection that can be added to the base package – lift, solar panels, vandalism and their peers.
The people side
- Policyholder: the party in whose name the contract stands and who pays the premium – here, the condominium itself. (the basics)
- Broker: an independent insurance intermediary who gets competing quotes from the market in the interest of their client – here, the building; their commission is paid by the insurer.
- Claims line: the insurer's telephone and online claim reporting channel – the primary, fastest route when a loss occurs. (reporting a claim)
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This article is for information purposes only and does not constitute an offer or insurance advice. The exact terms are always governed by the insurers' current policy conditions.
