Quotations are provided to demonstrate the actual costs of insurance cover and the documentation forms the basis of a new contract or the renewal of an existing one.

This is an amount an insurer in this example estimates to be the cost of providing their service based on the information that has been disclosed to them.

This is an agreement to continue insurance beyond the original term it was determined for. As an example, for a Car insurance policy, a renewal is likely to be made on an annual basis.

If a client's vehicle is off the road undergoing repair, in certain circumstances a replacement car may be provided free of charge.

Some policies offer the facility to ride any bike up to a certain CC. This is known as a rider policy.

Literally that which is being insured against - e.g. theft, accidental damage. Can also refer to the thing or person being insured.

The address of the thing or person that is actually being insured.

A policy that provides recovery and repair services for vehicles/motorists for when they break down.

Theft of certain models of car is a major risk for the insurer. If a security device is fitted that has the approval of the insurer, they will often reduce their premium.

This means that all parts of a client's home, including kitchens and bathrooms, are only available to, and used by, the client or members of their family.

This is when an insurer pays a claim.

Also called All Risks or Specified Personal Effects (SPE). This is cover outside the property for any item. As the name implies, the client is usually asked to describe the item to be insured and state how much it is worth.

Subsidence is the downward movement of the ground below a building. This may result in cracked walls, movement of walls and foundations and general instability of the building. Many insurers do not cover this risk.

The sum insured should be the full rebuilding cost of the property, not its market value.

The sum insured should be the total cost of replacing all contents as new, including furniture, clothes, jewellery, kitchen utensils etc.

Where you cancel a policy and usually receive a reduced payout, due to the impact of charges that have been incurred.

The amount that you will actually receive when converting a policy into cash.

A temporary 'freeze' on insurance cover while, say, a client is abroad and the car is kept in a garage. In order to do this the policy holder must return their certificate of insurance and continue to pay for the policy (if paid monthly or they will not receive a refund if paid in full). When the policy is due to renew the policy holder will then receive a credit for the time they have suspended the policy (if they renew with the same insurer) and they will still accrue their No Claims Bonus (NCB). This helps policy holders who do not have maximum NCB and are keen to reach this level.