Glossary

Term used on websiteMeaning
Accidental breakage cover Accidental breakage cover could cover for loss or damage caused by accidental breakage of limited items that could include glass, ceramic cooking surfaces, sinks and baths.
Accidental damage cover Cover for unintentional events that can cause damage to a home building or its contents. This is more extensive cover than Accidental breakage.
Actions of the sea Actions of the sea could include: 
  • rises in the level of the ocean or sea;
  • sea waves;
  • high tides or king tides;
  • any other actions or movements of the sea.
ASIC The Australian Securities and Investments Commission is the corporate, markets and financial services regulator. We ensure financial markets are fair and transparent, supported by confident and informed investors and consumers. We also enforce the law, including the Insurance Contracts Act 1984. ASIC's consumer website is MoneySmart.
Australian Financial Services (AFS) Licence A licence given by ASIC that allows people or companies to legally carry on a financial services business, including selling, advising or dealing in financial products. A licence does not mean that ASIC endorses the company, financial product or advice. ASIC grants a licence if a business shows it can meet basic standards such as training, compliance, insurance and dispute resolution. The business is responsible for maintaining these standards. The ASIC Connect Professional Registers will tell you if the company or person holds an AFS licence.
Australian Financial Services licensee A person or company who holds an Australian Financial Services Licence.
Certificate of insurance/Policy Schedule A document confirming that you have insurance cover that could include details about the type of insurance cover, the sum insured amount, excesses that apply and the amount, some important exclusions and limits, the premium and the dates you are covered for under the insurance policy. It also contains a summary of important questions and answers that you provided to your insurer when you purchased your policy.
Claim A request you make for compensation from your insurer if you suffer a loss that is covered by your insurance policy.
Cyclone Cylcone is typically not defined in insurance policies. For many home insurance policies, cyclone is already covered under storm cover.

As an indication only, the Bureau of Meteorology defines cyclone as areas of lower pressure and generally associated with stronger winds, unsettled conditions, cloudiness and rainfall.
Escape of liquid Escape of liquid could cover loss or damage to your home and contents caused by liquid leaking, bursting or overflowing from refrigerators, dishwashers, drains, baths, toilets or sinks etc.
Excess An amount listed in your Certificate of Insurance/Policy Schedule that you need to pay towards a claim. You pay an excess for each claim you make and the amount of the excess may vary depending on the type of claim.
Flood

The covering of normally dry land by water that has escaped or been released from the normal confines of any of the following:

  • a lake (whether or not it has been modified or altered);
  • a river (whether or not it has been modified or altered);
  • a creek (whether or not it has been modified or altered);
  • another natural watercourse (whether or not it has been modified or altered);
  • a reservoir (whether or not it has been modified or altered);
  • a canal (whether or not it has been modified or altered); or
  • a dam (whether or not it has been modified or altered).
Fusion cover (also known as motor burnout cover) Fusion cover could cover the cost of repairing or replacing an electric motor damaged by being burnt out or by the fusing of electric motors.
High risk variation Indicates that a higher level of variation in cyclone and flood risk can be expected across individual addresses within the location selected. This may result in a wider range of premiums between the higher and lower risk properties.
Home building insurance Insurance that covers (whether or not the insurance is limited or restricted in any way) destruction of or damage to a home building.
Home contents insurance Insurance that covers (whether or not the insurance is limited or restricted in any way) loss of or damage to the contents of a residential building.
Home insurance Home building insurance or home contents insurance. Note that this website does not compare combined home and contents insurance.
Impacts This could cover loss or damage to your home and contents caused by impact from a car, boat, plane etc.
Insurance brand The name of a business that is licensed to distribute insurance on behalf an APRA authorised insurer. One APRA authorised insurer can have multiple home insurance brands through which they sell insurance.
Insurance Provider (or underwriter) Insurance companies authorised to conduct new or renewal insurance business in Australia by the Australian Prudential Regulation Authority. An insurance provider issues an insurance policy. Insurance providers work out how much risk it will be exposed to and decide on a premium to charge you for insuring that risk.
Insured event (or defined event) An event that the insurance policy will specifically cover. These could include storm, fire or theft. Anything not listed in your policy as an insured event will not be covered under a policy based on defined events.
Insurer

Insurance company authorised to conduct new or renewal insurance business in Australia by the Australian Prudential Regulation Authority.

An insurer issues an insurance policy. It works out how much risk it will be exposed to and decides on a premium to charge you for insuring that risk.

Items temporarily moved from insured address Cover for your contents at another residence in Australia in which you are temporarily residing, such as a hotel.
Key Facts Sheet A two page document, required by government regulation, summarising key information about a home building and/or home contents policy.
Legal liability (or public liability) Insurance that covers your liability to another person or organisation for injuring them or damaging their property.
Limits (or caps) Restrictions on how much you claim for certain events and items.
Location For this website, this is the area in North Queensland that includes samples of residential properties from the suburb or postcode you have selected. This may not necessarily include your particular property.
North Queensland North Queensland for the purposes of this website, is that area of Queensland north of the Tropic of Capricorn (latitude 23 degrees 30 minutes south).
Policy The insurance contract. 
Policyholder (or the insured) The person holding the insurance policy.
Premium The premium charged by an insurance company for providing insurance cover.
Product Disclosure Statement (or PDS) A document that financial services providers must provide to you when they recommend or offer a financial product. It must include information about the product's key features, fees, commissions, benefits, risks and the complaints handling procedure.
Portable valuables cover Cover for items you might take with you when you leave your home. For example, jewellery or watches.
Reinsurance Insurance for insurance companies. This is one way in which insurers can ensure that they have enough capital to cover events that result in a large number of claims such as natural disasters.
Risk For home insurance, this is the chance of something (such as a cyclone or flood) happening that could cause loss or damage to your property or belongings, or injury to someone in your home. For more information on the risk factors that affect home insurance premiums see Factors that affect premiums.
Risk variation A measure derived from an assessment by Finity Consulting Pty Limited of insurance risk from cyclone, flood and storm for individual properties. It is a relative measure comparing the variation in risk across addresses within each of the North Queensland locations (suburbs/postcode areas) included in this website. This independent measure may differ significantly from the risk assessment used as a basis for the premiums set by individual insurers. 
Safety net benefit A policy benefit under which the insurer agrees to pay up to an agreed sum insured amount and only where necessary, an additional limited portion of the sum insured amount (buffer or safety net) to rebuild the home that has been damaged or destroyed by an insured event.
Sum insured

The buildings sum insured amount should reflect the amount it would cost to completely re-build your house.

The contents sum insured amount should reflect the amount it would cost to completely replace all contents with new items at today's prices.

This amount should consider the cost to rebuild your house to new building codes and standards, and other supplementary costs. For information on supplementary costs see Moneysmart

Storm Storm, as an indication only, could include a violent wind, cyclone or tornado, a thunderstorm, hail, rain or snow, or sudden excessive run-off of water as a direct result of a storm in your local area.
Total replacement policy This is where the insurer agrees to repair or rebuild the home to the same size and standard as the current home on a 'new for old' basis, rather than paying up to an agreed 'sum insured' amount.
Unauthorised Foreign Insurers (UFIs)

Foreign insurers that normally issue insurance products to retail consumers through a broker who is an Australian Financial Services licensee.

Underinsurance Underinsurance is when the amount you are insured for (on your Certificate of Insurance/Policy Schedule) is below what it would cost to replace or rebuild. 

Last updated: Monday, January 18, 2016