Insurance glossary

S

Schedule or Statement of Insurance

This is a document, fixed to a policy, which gives details of the property and persons insured.

Security

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.

Self Contained Accommodation

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.

Settlement

This is when an insurer pays a claim.

Specified Items (property)

Also know as All Risks or SPE (specified personal effects). 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

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. If a potential client's house shows signs of subsidence, Insurers may be unable to quote.

Sum Insured (Buildings)

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

Sum Insured (Contents)

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

Surrender

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

Surrender value

The amount that you will actually receive when converting a policy into cash, this is often nothing.

Suspension (motor)

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 NCB. This helps policy holders who do not have maximum NCB and are keen to reach this level.