Insurance Terms Explained “All risks” Wider cover than provided by a "defined perils" based policy. Includes any loss or damage apart from exclusions stated in the policy. Average A policy condition that requires the amount of a claim payment to be reduced proportionately if the Policyholder has not Insured his property for the full value or replacement cost. Contract works A form of insurance providing "all risks" cover, subject to certain exceptions, in respect of building works while in the course of construction and cover for materials, equipment, plant and temporary buildings. Also known as Contractors All Risks. Contribution The principle of Contribution applies where property or liability is Insured under more than one insurance policy and the Insurers concerned share the cost of any claim. Day 1 uplift An insurance policy feature which protects against a possible shortfall in claim payment due to inflation increasing the Reinstatement Value between inception (or renewal) and incident date. A percentage limit of between 10% and 50% normally applies. (.eg. If the building Declared Value at inception or renewal is £1,000,00 and the relevant rate of inflation to a claim 9 months later is 5%, then the Declared Value at the time of reinstatement is £1,050,000.) Declared value The Insured's assessment of the cost of rebuilding the property Insured at the time of inception of a policy or its renewal. This value, otherwise known as Reinstatement Costs, should also include costs of professional fees, debris removal and compliance with European and Public Authority regulations.
London Flats Insurance is a trading name of Residentsline Limited who are authorised and regulated by the Financial Conduct Authority: FRN 305998. Registered in England & Wales CRN: 03874789. Registered Office: 29 Waterloo Road, Wolverhampton, England, WV1 4DJ.
Delegated authority The giving of consent by an Insurer to act on its behalf. This may be in respect of underwriting and document issue and/or claims settlement. Excess The first part of a claim which is paid by the Policyholder. The Insurer pays amounts in "excess" of this first amount. An excess may be compulsory (i.e. imposed by the Insurer) or voluntary (i.e. accepted by the Policyholder in return for a premium reduction). Exclusion A clause in an insurance policy which limits the scope of cover. Indemnity The place of the Policyholder in as near the same position after an Insured loss as that which applied immediately prior to the event.
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