The following are typical terms found in an insurance policy:


The premium is the annual cost of the policy and the consideration for the contract. The amount charged is based on the probability of the insured against event happening.


A cover note is a temporary policy provided by the insurance company until the formal papers are completed. It is known as a policy document or interim contract of insurance in s11 Insurance of Contracts Act 1984. It gives the insured the immediate benefit of insurance while the insurer assesses the proposal and decides whether or not to accept the risk. Generally, the cover note is subject to the terms and conditions of the company's policy as the company's usual policy are binding on the insured irrespective of whether or not he/she is aware of them.


Policies are usually issued for a period of 12 months and are renewed annually. If the insured agrees to the renewal he/she is issued with a renewal certificate that states that on payment of the premium the insurance cover will continue according to the original policy for another 12 months.


Buildings are defined in a typical householders and houseowners policy as "the dwelling, private boarding house and/or residential fiat and all domestic outbuildings (including landlord's fixtures and fittings) at the situation". In a typical comprehensive investment property policy "buildings" also include lifts, elevators, escalators, fixed appliances and other structural domestic improvements.


Contents are defined in a typical householders and houseowners policy as "household goods, fixtures and personal effects, including only to the extent described in the policy".

See insurance terms – plain english policy