accident, sickness & unemployment (ASU)
- Insurance cover arranged by the borrower to protect against inability to meet mortgage payments. This cover should more accurately be described as accident sickness and redundancy insurance as unemployment cover is generally seriously restricted to cover only events that are entirely beyond the control of the insured person. Typical exclusions include dismissal following professional misconduct and any act of voluntary redundancy. The accident and sickness cover will also be subject to major restrictions such as any act of self-injury or any injury related to the use of alcohol or drugs.
buildings
- insurance covering the structure of the building which you must have. Where the property is leasehold the buildings insurance will normally be arranged by the freeholder and the cost charged on to the leaseholder within the service charges payable. As a general rule of thumb any item which cannot be taken away by the owner is covered by the buildings insurance, anything which can be removed should be covered by the contents insurance. This is only a guideline and any doubts should be raised with insurers as this definition can prove problematic in some instances, such as fitted carpets.
conditional
- an insurance policy that has to be taken out as a condition of obtaining a loan. Normally conditional insurances must be taken out via the lender's agency so that they benefit from any resultant commission.
conditional
- an insurance policy that has to be taken out as a condition of obtaining a loan. Normally conditional insurances must be taken out via the lender's agency so that they benefit from any resultant commission.
contents
- the insurance of property within your home i.e. furniture, clothing, personal possessions etc. as distinct from the buildings insurance. Whilst lenders will be keen to offer contents insurance to borrowers, it is not essential that you should have it. Cover is normally provided for insurance of fire, a full range of perils (e.g. water damage) and theft. Some policies offer a wider, all-risks wording. Contents policies normally cover goods within the home, although most will extend to include small amounts of cover outside the home, possibly upon payment of an additional premium.
general insurance
- insurance of goods (other than marine insurance). Insurance companies identify different types of pinsurance olicy as falling into different branches. For instance the Life branch covers the insurance of people and is generally known as life assurance. The insurance of property, rather than businesses, is known as personal lines.
payment protection
- see accident, sickness and unemployment insurance.
personal lines
- see general insurance.
terms
- simplest form of life assurance. The insured person or persons are covered against death within a fixed period subject to the payment of the premiums as they fall due (normally monthly or yearly). If an insured person dies within the policy term the sum assured is paid out. If all insured persons survive the term the premium has been spent and the insurance ends with nothing being paid to the policyholders.
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accident, sickness & unemployment
buildings
conditional
contents
general insurance
payment protection insurance
personal lines
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