Bilal Info | insurance in Australia

 Cut through the jargon

Find out the meaning of those technical terms. Click the letter that the word begins with or use the search bar.

Glossary 

Accidental breakage: This typically applies to glass and ceramics only. For full accident cover, you'll need an accidental damage policy.

Accidental damage: Put your foot through the roof? Kids repainted the lounge room in permanent marker? You'll need accidental damage cover.

Don't confuse accidental damage with accidental breakage. Most insurers clearly separate the two terms, but some indicate they have accidental damage cover and then go on to say it only covers restricted items like some types of glass.

Contents in transit: This cover typically applies when moving house (you'll need to inform your insurer of this too). Cover varies and conditions and sub-limits typically apply. For example, many insurers will only cover contents if the vehicle moving them is damaged in a collision or fire (and not accidental breakage, chips or scratches).

Contents in open air: This cover is to protect contents typically left outside, like outdoor furniture, but depending on your policy can also include 'inside' items. Each insurer has its own definition, so it pays to be sure what this is before signing up.

Damage by animals: This is a standard feature in most defined events policies, but there are severe restrictions. If your pet causes the damage, the cover does not apply. Damage caused by biting, pecking, clawing or chewing is also excluded from cover. Generally, this leaves impact damage and animals accidentally trapped inside a home.

Insured events: The list of events covered by your policy. All policies we compare cover fire, vandalism, explosion, impact damage, lightning, earthquake, storm damage, theft and sudden escape of water.

Earthquake: All policies we surveyed cover earthquakes, but a minimum excess may apply. Typically this is $500, meaning if your basic excess is lower than this you'll have to pay more to make a claim. If your excess is higher you won't be affected.

Flood: All policies offer cover for flood, which has an industry-wide standard definition. A few let customers opt out if they don't live in a flood zone, but not many. Others offer it as an optional add-on.

Landlord's insurance: Generally, the same cover elements apply to this as to home insurance, however there may be additional protections or requirements.

Landslide: Some insurers do not cover this at all. Those that do cover landslide will only do so when it is caused by a specific event, such as an earthquake or storm. There may be a time limit on what damage is covered (e.g. only damage that occurs within 72 hours of event).

Legal liability: Cover when you are responsible for damage to someone else's property, or the injury or death of another person. Typically this cover extends to children, although if your adult offspring live with you whether or not they're covered might depend on how broadly the insurer defines "you". Some include the family members of policyholders living at the insured address. Liability cover in a contents policy covers you away from your home, while the liability cover in a building policy gives you protection on your property.

Motor burnout (aka fusion): This covers electrical motors that burn out or fuse and stop working. Cover varies between insurers, and spoiled food may also be covered in some cases. Restrictions apply, most often to submersible or underground motors (think pools and bores), business items and electronics (like televisions). Motor age limits also apply (usually 10–15 years maximum), and you won't be covered if your item is still under warranty. Read your policy for full details.

New-for-old replacement: Cover varies between insurers and normally there are restrictions too. For example, insurers may opt to repair items first if it's economical to do so. There may also be item limits, especially for things like art and memorabilia.

Portable valuables: Many policies give you the option to cover some portable contents against accidental loss or damage when you're away from home. You can either opt for unspecified contents cover, which comes with limits set by the insurer (e.g. $1000 per item up to $5000 per claim) or have individual items listed on your policy for a replacement value you decide.

Pet cover: Some insurers will pay a benefit for vet bills either as standard or as an option. The benefit is typically minimal with lots of restrictions, especially compared to other products on the market. Although it doesn't hurt having this benefit, we'd suggest reading our pet insurance buying guide if this cover is important to you.

Safety net: Pays a specified percentage – as much as 30% – above the sum insured amount if the cost to repair or replace your home or contents ends up being more than you've insured for.

Storm surge: This is where the sea level rises as a result of a cyclone or other intense storm. Sometimes this is covered under the flood definition, and sometimes you're only covered if there's also a flood at your property. If you live next to the sea, make sure you know what the limitations are.

Sum insured: This type of policy pays claims up to the sum insured amount specified on the insurance certificate. Under-insurance is a common problem, so be sure you've calculated the value of your home and contents correctly.

Theft: Most policies insure against theft, but many stipulate that theft is not covered when the thief enters with the owner's consent. This rules out any theft that occurs, for example, during a real estate inspection, or at a party, or if you hire a contractor or labourer to work on your property.

Tools of trade: Sub-limits apply to tools, and different limits apply to surgical tools where applicable. As with other valuables, expensive items should be listed separately on your policy (or insured elsewhere) if this is a concern.

Total replacement cover: This type of policy pays whatever it costs to repair or rebuild the building, taking into account policy exclusions.

Tsunamis: Most policies we surveyed include tsunami cover, either as its own insured event or as part of their earthquake cover.

Unoccupied homes: If you're travelling for more than 30–60 days, check to see how this affects your home and contents insurance. In some cases, cover may be restricted or void completely if you leave your home unattended for an extended period.

Valuables: Sub-limits apply for valuables like cash and jewellery. If you have high-value individual items, strongly consider whether you need to list them separately on your policy or at least factor this in to any emergency fund you've put aside. In some cases, listed items may be covered away from home (such as on a holiday).

Visitor's contents: Cover varies, and cash and other valuables may be excluded from cover. Sub-limits apply.