A plain-English insurance vocabulary
Insurance policies are dense with jargon that decides exactly what you pay and what you can claim. This reference defines the core terms across general, health, property, liability and life cover, so you can read a policy schedule and know where each pound goes. Use the search box and category filter to jump straight to the term you need.
How it works
Most insurance terms fall into one of two buckets: how much you pay, and what gets covered. The cost-side terms stack in a defined order on a claim:
1. Premium → ongoing cost to hold the policy
2. Deductible → you pay this first on a claim
3. Co-pay / Coinsurance → your share of covered costs after the deductible
4. Out-of-pocket max → ceiling on your total spend; insurer then pays 100%The coverage-side terms — peril, exclusion, sum insured, liability limit — define the scope and ceiling of what the insurer will pay. Together they tell you the real shape of your protection beyond the headline price.
Tips and notes
- A lower premium often means a higher deductible — compare total likely cost, not just the monthly figure.
- Liability limits are frequently split into a per-occurrence cap and an annual aggregate; both can be exhausted in a bad year.
- Replacement-cost cover costs more than actual-cash-value but pays far better on older property, because it does not deduct depreciation.
- Exclusions are where most disputes start — read them before you read the price.