We’ve all been there. You’re on the phone to your insurance company and they’re saying things that you don’t understand. Disclosure? Exclusions? Sum insured? What do these actually mean?
To help you get to grips with the lingo, we’ve put the most commonly misunderstood insurance terms into plain English, as well as a few handy tips. So next time you’re talking with your insurer you’ll be fluent in insurance-speak and totally know your stuff.
This is the contract between you and your insurer. This is your go-to set of documents that contain all the ins and outs (terms and conditions) of what you’re insured for. This will include your policy wording and policy schedule, and these set out the terms and conditions we may apply. And explain what you’re not insured for - these are known as ‘Exclusions’ – read on for an explanation of what that means.
Tip: You can download your policy schedule from My AMI, your online account or the AMI app, and your policy wording from our Policy documents page. If you’re unsure about a term and would like us to explain it, call us on 0800 100 200, or chat to us on Facebook. Don’t be afraid to ask us for real-life examples of anything you’re really struggling with.
In the world of insurance, this means sharing all relevant information and being open and honest with your insurer when applying for cover. If you haven’t been truthful and later down the line you need to make a claim, your insurer may not be obliged to pay out some or all of the costs needed to fix what’s gone wrong.
Tip: Pay careful attention to the questions you are asked when buying your policy and if you don’t fully understand something, ask for clarification.
These are items or situations that aren’t covered under your policy. For example, if you’ve made certain modifications to your car that you haven’t told your insurer about and these are damaged or stolen, the cost to repair or replace them may not be covered. Other examples are:
Tip: Make sure your policy is up to date with any changes to your situation. Also, check your policy wording and policy schedule for the specifics of your cover and any terms and conditions. If there is an exclusion on your policy that you’re worried about, discuss it with your insurer – they may be able to help.
This is the amount that your asset, like your home, car or contents, is insured for. Your sum insured is shown on your policy schedule and it’s important this amount is regularly reviewed by you to ensure it accurately reflects the value of your asset.
Tip: Make sure your sum insured is enough to cover the replacement or rebuild cost if the worst should happen. You can use the calculators on our home sum insured page or our contents sum insured page to work this out.
‘Replacement’ cover means if your home is damaged or destroyed by a fire or explosion, we’ll pay the cost to repair or rebuild it up to the same floor area, even if it costs more than your home sum insured.
Tip: To qualify for replacement cover, use the Cordell Sum Sure calculator to help you choose a sum insured that’s equal to or greater than the estimated cost to replace your home.
Market value (or present value) means that in the event of a contents claim you will receive the used/second-hand value of the item – i.e. its value immediately before the loss or damage occurred. This will take into account wear and tear and use.
Tip: Check your policy wording on our Policy documents page to see how your belongings are covered. If you’d like to discuss which cover is right for you, call us on 0800 100 200, or chat to us on Facebook.
