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