High Risk Items are the items most commonly targeted by thieves. These can include audio-visual equipment, jewellery, computers/consoles, antiques and anything else of high value. The actual list varies between insurers, but you normally have to pay extra if you have several high-risk items to include on your policy.
Home Emergency Cover is an optional extra and can cover you in emergencies such as losing keys, plumbing or electrical failure and any damages which occur as a result of these.
Legal cover is another optional extra and can be used to over legal costs if you ever need to pursue a claim through the courts, for example if a neighbour's DIY efforts have caused damage to your property and they are refusing to accept liability.
Loss Adjuster: an impartial specialist who investigates claims on the behalf of an insurer. They examine the cause of a loss or damage, assess the validity of a claim and make sure the policyholder has the right type of cover for their claim.
Material fact: information which could affect what premium you would pay. Details such as recent building work or any history of subsidence on the property would be a material fact, and if any such details are later found to be omitted, they could render a policy invalid.
New for Old policies are sometimes called 'replacement as new' cover. They promise to meet the full cost of replacing or repairing a lost, stolen or damaged item, taking into account deprecation.
Optional extras are sometimes offered along with the standard policy, or you may need to ask about them. They are usually for things such as home emergency cover or legal cover, and will incur extra costs on top of your premium.
Quotes can vary immensely between insurers so never take the first one unless you know it to be the lowest you could obtain. It's always best to compare insurance policies as each insurer has different criteria they look for in a policy holder. Some insurers prefer to only insure expensive, high-value homes while others may only take on people with no previous claim history. The internet is the best place to obtain several quotes and choose the best deal.
Rebuilding cost is how much it would cost to completely rebuild your home if it was destroyed. Usually this will include the costs involved in clearing the debris form your old home plus professional fees, labour, materials and sometimes accommodation while your home is being rebuilt. It's a very expensive optional extra but if you live in an area prone to floods it may be worth looking into.
Underwriters are employed by an insurance company to make the decisions as to whether to accept a customer and determine what level of risk they pose. The Underwriter will calculate your risk based on your application and decide what premiums you should pay.
These are just some of the home insurance terms which are commonly misunderstood. Cheap home insurance may not provide you with the level of cover you need. When purchasing house insurance look for the best deal, not just the cheapest price. See part 1 for more terms.