Insurance terms glossary

When you make an insurance claim, you may come across unfamiliar legal terms. Here we provide a brief explanation of the most common terms you may read in your insurance documents…

ab initio: Literally ‘from its inception’; a breach of a condition which may lead an insurer to treat a policy as null and void.

adjustment: The amount a loss adjuster reduces your claim after they have taken into account any under-insurance, policy limits, overstatement, etc.

‘all risks’ insurance: A type of insurance which is designed to protect the policyholder against loss or damage, whatever the cause. Despite the name, however, there are usually some restrictions.

average clause: A clause in an insurance policy which states that if, at the time of the loss, the sum insured is lower than the value of the property insured, then the settlement will be scaled down in proportion to that level of under-insurance.

betterment: When a policyholder decides to replace a lost or damaged item with something that is ‘better’. The policyholder is responsible for the difference between the original item’s value and the cost of the new item.

breach: Failure to comply with a condition in the policy, for example with a security requirement.

excess: The amount of each and every claim which is to be paid by the policyholder and is therefore deducted from the final claim settlement.

ex gratia: A payment which isn’t strictly due under the terms of the policy.

inception: The date on which the policy commenced.

indemnity: Legal requirement for the policyholder to be compensated for loss or damage, or for legal liabilities they may have incurred. An indemnity is paid when a claim is accepted under the terms of the insurance policy. Is also used as the term when, in the event of underinsurance, the insurer pays for the replacement cost of damaged items less an allowance for wear, tear and depreciation: this is described as ‘reverting to indemnity’.

index linking: Automatic adjustment of the sum insured to match a certain index: for example, the House Rebuilding Cost Index is used to calculate increases to the buildings sum insured.

insured peril: An event which is covered by a specific policy: for example, fire is a standard ‘insured peril’ in most policies.

loss adjuster: A claims specialist employed by an insurance company to represent their interests by investigating and adjusting claims and reaching the most economical settlement.

loss assessor: A claims specialist employed by the policyholder to protect their interests. Will prepare, present, manage and negotiate the claim to achieve the maximum settlement under the terms of the insurance policy.

misrepresentation: Meaning misstatement of facts; this may entitle the insurer to declare your policy void or to refuse a claim.

non-disclosure: When an important but previously undisclosed fact comes to the insurer’s attention which may entitle them to declare your policy void or refuse a claim.

policy liability: An obligation to recompense the policyholder under the terms of the insurance contract.

proximate clause: The primary or principal reason for or cause of a particular loss. This is not necessarily the first or last cause in a chain of events.

quantum: The actual amount the insurer pays as a settlement of a claim.

repudiated: The insurance company has refused to accept liability and as a result the claim has been rejected.

salvage: Items which formed part of a claim and for which the policyholder has been paid. These damaged, lost or stolen items then become the property of the insurer who is then entitled to keep the full proceeds from any sale of these goods, as long as the policy has received the full value of the goods as settlement of the claim.

subrogation: Taking over responsibility from the policyholder for seeking recovery, usually by the insurer. The insurer is then responsible for any costs incurred in achieving recovery. For example, if a negligent motorist damages a garden wall and the household insurer meets the claim for the wall, then this insurer has subrogated rights of recovery against the motorist.

sum insured: The maximum amount payable to the policyholder under the terms of the policy.

third party: Someone who is directly involved in the event which has led to a claim, but is not a party to the policy. For example, if a plumber has caused an escape of water in a property, they would be a third party in the context of the claim.
under-insurance If the sum insured is less than the correct cost/value of rebuilding or replacing the building or item insured.

underwriter: The person who decided whether a risk is insurable and if so at what cost/premium.

value-at-risk: The full value of a property or item which could be the basis of a claim under a policy. This will vary according to the type of cover: for example, if it is new for old, value at risk would be calculated on this basis.

void: When a policy is regarded as if it never existed, through for example non-disclosure or misrepresentation.

warranty: A condition of a policy which must be complied with for the cover to operate.

without prejudice: An enquiry, proposal or offer of settlement made without admission of liability. The words are used either verbally or in writing to ensure no admission of liability is implied.

Let Morgan Clark take away the stress, resolve your claim as quickly as possible and ensure you receive everything you’re entitled to.

Why choose us

Popular Questions

What will my insurance company think if I appoint a Loss Assessor? faq plus icon to expand accordian

There is no reason why your insurance company or Loss Adjuster should discourage you from appointing your own Loss Assessor. If your Loss Adjuster is trying to dissuade you from using our services, you should question why they are against the idea of you being equally represented. After all, a Loss Assessor can only help a policyholder claim for what is legally within their insurance contract. Click here to read more about Loss Adjusters.

Doesn’t my insurance company manage my claim? faq plus icon to expand accordian

While many insurance companies will support you in the initial weeks of your claim, their only responsibility is to ensure costs are covered to restore your property and replace damaged contents, stock, machinery etc. (if applicable). As your claim progresses, you will be left with the most stressful and time consuming day-to-day elements to organise and oversee alone if you do not appoint a Loss Assessor.

What’s the difference between a Loss Assessor and a Loss Adjuster? faq plus icon to expand accordian

Loss Assessors and Loss Adjusters are both insurance claim professionals, but there is one key difference in their role during the insurance claim process; a Loss Assessor is appointed by and works exclusively for the policyholder, while a Loss Adjuster is appointed and paid by the insurance company. Loss Adjusters are expected to remain independent. Read more about the difference between Loss Assessors and Loss Adjusters here.

How much will this cost? faq plus icon to expand accordian

In the majority of cases we are able to represent our clients without charging a fee at all. Read how we are able to offer our services free of charge by clicking here.

What our clients say, in their own words

https://www.youtube.com/watch?v=5gnX4xNv6EE

Jim and Jan talk about their experience when a thatched roof fire practically destroyed their home and the crucial help they received from Morgan Clark.

1 / 8

https://www.youtube.com/watch?v=mD80ZU3uh6s

When Jane had an explosion at her home she had no idea where to turn until she came across Morgan Clark and she is so relieved that she did.

2 / 8

https://www.youtube.com/watch?v=pVkojmTz8wE

Mr Lund discusses his flood insurance claim and the incredible recovery he made with Morgan Clark on his side. The flooding was caused by a culvert becoming blocked

3 / 8

https://www.youtube.com/watch?v=_xiqm-ojtMk

Ted and Wendy recall their experience when a firework caused a devastating fire at their home and they turned to Morgan Clark to restore their home.

4 / 8

https://www.youtube.com/watch?v=y6lkvBglEyQ

When Rob and Catriona returned home from work to find their house filled with black smoke they realised they were in no position to handle their claim alone.

5 / 8

https://www.youtube.com/watch?v=y1JW4ZY0cC0

With little response from the insurance company, Mr Scruby appointed Morgan Clark to run his fire insurance claim and is so pleased he did.

6 / 8

https://www.youtube.com/watch?v=aXnjH4R8M7U

Mrs O’Halloran felt she had to come back to Morgan Clark when her house flooded for the second time because she knew what a difference it made the first time.

7 / 8

https://www.youtube.com/watch?v=75jny_Z4znk

Following a major flood that destroyed vital stock and equipment Sharma turned to Morgan Clark to safeguard the future of her business.

8 / 8

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I can’t recommend Morgan Clark enough

I can’t recommend Morgan Clark enough . I was in total despair when my insurance company initially declined our genuine …

Trusted Customer – November 24, 2021

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Excellent would recommend to anyone

After a serious flood Morgan Clark were recommended, we met Dan Norris who was the most wonderful , kind and helpful …

Mrs Donovan – February 10, 2022

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Outstanding service

Expert advice which ensured our claim was settled legitimately and comprehensively

Trusted Customer – February 10, 2022

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Very professional frist time I’ve clamed and did all the work for us

Mr & Mrs Howard – February 10, 2022

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Exceptional service from start to finish

From start to completion Morgan Clark have been exceptional. They took away the stresses of dealing with insurers and with …

Trusted Customer – May 17, 2022

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So helpful keeping good contacts when you needed

Very helpful kept us in touch all times easy to speak to Martin Chapman top man

Trusted Customer – August 9, 2022

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Absolutely fab company

What an absolutely fabulous company, they took all the stress and hard work from us and sorted everything, what started …

Joanne McVicar – August 18, 2022

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Extremely professional and considerate

From the very onset of their involvement , Sunny and then Ryan Field took on our case and their handling of …

Trusted Customer – September 1, 2022

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Never have I come across a team of people who exceeded my expectations…

“I have worked as a professional all my life. Never have I come across a team of people who exceeded …

Mr Rabinowitz

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Outstanding customer service and experienced staff …

“Extremely high standard of service. Extremely professional, both representatives that dealt with the case, Nathan Robertson and Ryan Field, gave …

Mr Asif

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Vital in getting the insurer to accept the liability …

“Morgan Clark understood the policy wording on our landlord insurance policy which has been vital in getting the insurer to …

Mr Seedat

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Alan was very helpful, friendly and extremely informative …

“Alan was very helpful, friendly and extremely informative. He guided us through the initial process of making a claim after …

Ms Wilson

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We could not have done this without you …

“Exemplary! There was no occasion when we did not feel fully informed about the progress of our claim and the …

Mr & Mrs Biggs

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You did it all for us and we can’t thank you enough …

“We have found you extremely easy to deal with and to be honest you made the process very easy for …

Ms Hall

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You took all the worry away from us …

“We were in a very bad place following the fire when we contacted you after a random internet search. You …

Ms Brandon

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We have recommended your company and would do again …

“Paul was very helpful and explained all the options and kept us updated taking a lot of stress and time-consuming …

Mr Boylan

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Reassuring advice throughout …

“All parties involved at the site meetings were so helpful and absolutely professional in organising the repair of our house …

Mr & Mrs Mc Ginness

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Reassuring advice throughout …

“Due to the poor experience with the loss adjuster we never thought that we would have our house returned to …

Mr Nazir

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We can’t thank you all enough…

“I was constantly kept informed by email, text and phone whenever there was a new development concerning the insurance company, …

Mr & Mrs Badder

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An outstanding service…

“This is the second time we have used your service. What you offer is an outstanding service at a time …

Mr Lund

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I know I would not have coped without them…

‘My team’ as I have grown to call them, have supported us through some challenging times, all with 100% professionalism, and …

Mrs Hampshire

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Highly supportive and we cannot recommend them enough…

Our high level of satisfaction with Morgan Clark comprised of many fundamental components including communication, teamwork and collaboration …

Dr Baqar & Mrs Ali