TERMS – PLAIN ENGLISH POLICY
following are typical definitions of insurance terms used in modern
plain English insurance policies:
- CREDIT PROVIDER: Means a licensed
credit provider, or a bank, building society, or credit union.
- DAMAGE: Includes any breakage or form
of destruction caused to your home. Damage does not include wear and
- DE FACTO: means a person living with
another in what we determine to be a genuine domestic relationship.
- DEPRECIATION: is an amount deducted
from the replacement value, based on the age and condition of the house.
- EXCESS: is the amount you would
normally pay when you make a claim on this policy. You do not pay an
excess when you take out or renew a policy.
- FIXTURE: means any item which is
permanently attached or fixed to the structure of your home.
- FLOOD: is a general exclusion.
- HOME IMPROVEMENTS: are any permanent
additions in or around your home that add value to the cost of
rebuilding or repairing it. They include things such as a garage, pool,
carport, and permanent landscaping features. They do not include trees,
shrubs, soil, or any natural bushland.
- INCIDENT: includes a series of
incidents arising out f the one event.
- INDEMNITY VALUE: is the replacement
value of your home less a reasonable allowance for depreciation based
on the age and condition of your home.
- LEGAL CONSTRUCTION: is a building (or
part of a building), that is on your site and has met with:
- council or
controlling authority’s regulations, or
requirements of any statutory authority at the time it was built or
- PET: is a domestic animal, not used
at any time for racing or commercial breeding purposes, kept in the
home or on the site.
- REPLACEMENT VALUE: is the amount of
money it would cost to totally rebuild your house and all the home
improvements on the site.
- SITE: means the land on which your
home is located and the yard or garden surrounding it at the address of
your home stated in the Policy Schedule. It is that land used only for
- STORM: is violent wind (including
cyclones and tornadoes), thunderstorms or hail which may be accompanied
by rain or snow.
- SUM INSURED: is the amount of
insurance cover you have purchased for your home. It is the amount
shown in the Policy Schedule .
- THEFT: includes burglary or
- YOU: means the person or persons
named as the insured in the current Policy Schedule. If more than one
person is named as the insured in the current Policy Schedule, the
insurer will treat a statement, act, omission, or a claim by any one of
those persons as a statement, act, omission, or a claim by all those
- YOUR FAMILY: means your spouse (legal
or de facto) and any member of your family or your spouse’s family who
normally live with you.
- YOUR HOME: means the house used for
domestic purposes plus all fixtures and home improvements on the site.