Like any sector, an insurance claim has its own jargon, often completely meaningless to the lay-person. At Allied Claims, we try always to talk in plain language to our clients and explain any technical terms, but it’s as well to know some of the terminology for any contact with other professionals, such as a Loss Adjuster.
Over the next few months, I’ll be giving a guide to some of the most important terms. Here are three to start.
Unexpected and unplanned damage or harm caused to a property or a person.
This seems obvious, but “accidental” doesn’t have quite the usual meaning for the purposes of insurance. For damage to be judged accidental, it must be clear that you haven’t substantially contributed to the damage by action or negligence.
For example, suppose you’re carrying a sealed tin of paint through your house. You stumble, the tin flies out of your hand and hits the floor hard enough to burst open. Suddenly, you have a carpet that looks like a Jackson Pollock painting.
This is definitely accidental, and your insurance claim should be accepted. If, on the other hand, you were carrying an open tin of paint with no lid, the Loss Adjuster may judge the damage as partially your own fault and advise the insurance company to refuse the claim.
Aggregate Limit of Indemnity
The maximum amount an insurer will pay for all insurance claims over a set time frame.
Understandably, an insurance company isn’t willing to commit an unlimited amount of money per claim. Most people only ever need to make one or two claims on an insurance policy, if any, but there are exceptions.
Most policies will include an aggregate limit of indemnity, which will set a figure on the limit they’re liable to pay out in total over a set period. This is usually the lifetime of the policy, but occasionally a different time-scale is specified. If the combined total reaches this cut-off point, the insurance company will no longer pay your claim, however valid.
Assurance vs Insurance
Assurance is against something that will happen; insurance is against something that may happen.
Have you ever wondered why you have Life Assurance but Property Insurance? That’s because you will die (though hopefully not for a long time), whereas you may never need to make an insurance claim on your property.
This obviously affects the way in which the risk is calculated, although assessments will still be made to calculate how long you’re likely to live, and therefore how many payments the insurance company can expect to receive. Ultimately, though, they will need to pay out.
If you need any help with your insurance claim, ring us on 0800 999 5679 or go to the ‘Contact@ section of the website by following this link >>>