Glossary

Here you will find a list of terminology used in the insurance business with plain English explanations of their meaning.

Adjuster - A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted.

Assessor - A representative of the insured who seeks to determine the extent of the insurer's liability for loss when a claim is submitted.

Excess - The agreed amount of some or all losses arising under an insurance contract that must be borne by the insured.

Exclusion - A term in an insurance contract, which excludes the insurer from liability for specified types of loss. An exclusion may apply throughout a policy or it may be limited to specific sections of it.

Indemnity - The principle under which a claimant is restored (so far as possible) to the same financial position that they were in immediately prior to the insured loss.

New for Old - In recent years it has become the norm for policies to be issued on a new for old basis. For contents this is the cost of replacing all claimed items as new. A reduction for wear and tear is usually made for items of clothing and household linen.

Reinstatement - To acquire, install and commission such that the insured is returned to pre-loss situation.

Replacement - Where the insurer agrees to replace irreparably damaged or stolen goods with goods of a similar type and quality instead of paying a cash sum to the insured.