you are here: Homepage > Building Insurance Glossary >                   Insurance Glossary. The Letters H-I                     Get Quote   UK Home Insurance for homeowners in the United Kingdom Competitive Prices with Comprehensive Cover for high Net Worth Individuals Options include contents cover and all risks     Building Insurance, in fact insurance in general is an enormously complex subject. Often you will encounter words that you are unfamiliar with, we have provided a list of some of the most popular terms and hope that they will prove useful to you. Simply Click on the Letter Below to be Taken to your Page. A B C D-E F-G H-I J-L M N O-P Q-R S T-Z         Holiday Insurance. This type of Insurance ( also known as Travel Insurance can be arranged on either a short term or an annual basis. The policy will cover certain perils connected with holidays. Usually this includes cover for the costs of cancellation, personal accident, medical treatment abroad and lost or stolen luggage. Home Service Business This is a term which relates to insurance transacted by insurers whose practice it is to call at the home of the policyholder. Household Insurance Business -  This terms relates to the insuring of domestic dwelling houses and policies can be extended to included contents and all risks covers. Most policies require that the home is not used for any business purposes although some insurer will now include business use for certain occupations. Insurance Illustration - A printed example of how much a particular investment may be worth at a date in the future. Impaired Lives Register - This is a list of individuals who have been refused, or charged more for, life insurance, for various medical reasons. Inception Date - This is the date that an insurance contract started. Income draw down - This is a way of taking regular income directly from a pension fund instead of buying an annuity . An annuity can be purchased at a later date. Income Protection Insurance - A policy which pays will provide an income for as long as the policyholder is unable to work as a result of accident or illness. The cover will usually last until retirement. Sometimes this type of insurance policy is called Permanent Health Insurance. Increase in Cost of Working - This is a form of Business Interruption Insurance, the policy will provide an indemnity in respect of additional costs incurred following an insured event under an insurance policy. The amount is designed to help pay for additional costs such as renting premises etc. Increasing Term - A term insurance contract in which the sum insured increases each year by a fixed percentage of the original sum insured. Indemnity - This is an Insurance principle by which policyholders are put in the same financial position after a loss as they were immediately before it. Independent Financial Adviser - Also referred to as an IFA, this is an Adviser authorised to recommend or sell the products of any insurance or investment firm. Index-linked - This term usually relates to Home Insurance products. The sums insured in respect of Buildings & Contents change automatically in line with an index. Individual Policy - Insurance taken out by an individual on his or her own life or by an individual or legal person on the life of another person. Individual Savings Account (ISA) - This is a savings vehicle that allows customers to invest in equities, life assurance policies or save in cash without having to pay tax on the returns gained from them. Insurable Interest - A principle of insurance which states that you may only take out insurance if you would suffer a financial loss if the event covered by the policy happens. Individuals have an unlimited insurable interest in their own life and that of their husband or wife. Insurable Interest also relates to the insurance of property. Insurance - in simple terms, insurance is a risk transfer mechanism; someone (The policyholder) pays someone else (The Insurer or Underwriter) a sum of money (The premium or consideration) in return for a policy, which will provide a payment if an event (usually something unfortunate and unforeseen) happens to the item, which is the subject of the insurance. Perhaps you worry about your home being broken in to or being damaged in a flood or your car being involved in an accident. What would you do if you were suddenly faced with a large bill to replace or repair your belongings? Insurance can provide you with peace of mind as well as help remain financially secure. The terms Insurance & Assurance are interchangeable.. Insurance Company - A company that takes on insurance risks by offering policies in return for the payment of premiums. Insurance Companies may be ‘mutual’ (owned by the policyholders) or ‘proprietary’ (owned by shareholders). Insurance Premium Tax (IPT) - A tax imposed on most non-life insurance premiums. At the present moment the standard rate of insurance premium tax is 5%. An exception is Travel Insurance which attracts an Insurance tax of 17.5% Insured - A person afforded covered by an insurance policy. . Intermediary - A Person or organisation that advises and sells insurance products on behalf of an insurance company or Lloyds of London. The Intermediary will usually receive a commission from the insurer whose products are sold. Commissions vary from product to product and you may be entitled to know how much an Intermediary is making by selling a particular product. Investment - The act of allowing someone else to have use of your money in return for payment of interest and/or a share in profits that may be made. Investment funds - The general name for life funds used for savings and investment plans.       Copyright Building-insurance-uk.co.uk 2008