Insurance Jargon
Don’t you just hate it when people use jargon?
These days it’s generally driven by youth and based on actual words cut short, like Whatevs, YOLO, OMG, Sic, TBH, Totes, Hangry.
Insurance is full of jargon too and we want to lift the veil on it, to help you better understand your insurance policy wording. Here’s the most commonly used insurance jargon and what we mean when we use it:
EQC |
Earthquake Commission | |
EQ Cover |
Earthquake cover | |
EQC Act |
A document outlining the intention of the EQC and their cover | |
Event |
A specific, defined happening that happs at a specific time and place | |
Excess |
The amount you pay towards any claim | |
Hidden Gradual Damage |
Damage that occurs slowly over a period of time and is hidden from sight, you normally find out about this damage long after it started. | |
Legal Liability |
Costs that you are required to pay because you were found liable by a court of law. | |
Loss |
Physical loss or physical damage | |
Mitigate |
Minimise, lessen | |
Natural Disaster |
An earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami or natural disaster fire as defined in the EQC Act | |
Period of Cover |
The duration of time that you have insurance cover | |
Policy Limit |
The most you’ll get paid for claims that fall under that section of the insurance policy | |
Policy Schedule |
Your personalised contract with the insurance company | |
Policy Wording |
The contract between you and your insurance company, it outlines what you are and aren’t covered for | |
Prudent |
Careful, acting with care | |
Resultant Damage |
Loss that occurs following an event | |
Sudden & Accidental Loss |
Physical loss or physical damage that happens suddenly and unexpectantly at a specific time | |
Sum Insured |
The most your insurer will pay for a claim | |
Your |
The person or entity shown in the schedule |