Insurance glossary

When you first start researching insurance there may be a lot of terms that you haven’t heard before. We write our insurance documentation in plain, simple language to help you understand what you’re covered for.

To help you even further, we’ve listed definitions below for some of our commonly used terms.

 Term What we mean  
Accident An event or incident which you didn’t intend or expect.      
Accidental damage
Damage caused by an accident.
As new  For your home - rebuild or repair it using the same materials if they are readily available in Australia or equivalent materials in terms of quality, purpose and specifications.

F
or your contents - replace them with new items which are readily available in Australia and which are their current equivalent in terms of quality and price, regardless of brand or supplier.
Body corporate A body corporate or owner’s corporation under any law relating to the management of subdivided lots or units and common property.
Business Any business, trade, profession or other activity you earn income from. It doesn’t include:
  • casual baby sitting or child minding
  • domestic garage sales
  • renting out your home (as long as you previously told us about it).
Collection A number of items that are brought together or collected as part of an interest or hobby. It includes collections of coins, stamps, models, toys, badges, spoons or wine.
Common area Any area of a community title scheme, strata title scheme or flats which is not part of your lot or tenancy unless it is secure and you have exclusive access to it under the by-laws of your body corporate or tenancy agreement. It includes garages, storage areas, parking areas, walkways and stairwells.
Conseqeuential loss Any loss or extra expense which indirectly results from an event we cover under your policy. For example:
  • any extra expense to replace undamaged property to create a uniform appearance
  • not being able to match bricks if the insured event ‘Impact’ damages a brick wall on your home
  • the drop in an item’s value after it has been repaired or replaced
  • you purchased an extended warranty for a TV or DVD player which is destroyed by an insured event – we’ll replace the item but we won’t give you a new extended warranty
  • lost pay because you are unable to get to work because of an insured event.
Cost to us What it would cost us, including any discounts that are available to us, to repair, rebuild or replace your home or contents when the loss or damage took place.
Excess The amount you pay towards the cost of your claim. Your Certificate of Insurance shows the type and amount of excess that applies to your policy. More than one excess may apply.
Family or your family Your family who permanently live with you at your home which includes your legal or de facto spouse and any member of your family or your spouse’s family.
Fixed swimming pool Includes an in ground or an above ground pool which involved completing excavations or installing permanent structures like decks, ladders and fences. A fixed swimming pool also includes its fixed accessories like a pump, motor and filters.
Forced entry Illegal entry into your home or where you are staying which includes illegally using keys or picking locks. It does not include entering your home through an unlocked door, window or skylight.
Home unit A home which shares a wall with any other structure that is not part of the home (e.g. an apartment or townhouse).
Includes This has a non-exhaustive meaning in this Product Disclosure Statement. As well as the things actually named, other things can come within the same category or list.
Insured address The address or addresses shown on your Certificate of Insurance.
Leak Liquids that are leaking, bursting, discharging or overflowing from certain items or devices.
Open air Anywhere at the insured address that is not fully enclosed and lockable.
Pair/set Contents items that are regarded as a unit. It includes earrings, golf clubs, candle holders, dinner set and ornaments.
Policy Your policy includes:
  • your insurance and renewal application
  • the Certificate of Insurance
  • this Product Disclosure Statement
  • any issued Supplementary Product Disclosure Statement.
Portable items The portable items shown in Table 2 on page 52 that you ask us to cover anywhere in Australia or New Zealand. This is an optional benefit which you need to pay an extra premium for. Your chosen Selected Personal Items or the Group cover option you choose are shown on your Certificate of Insurance.
Premium

The amount you pay for the cover we give you under your policy. It includes any compulsory government statutory charges, levies, duties, GST or other taxes that may apply.

Renovations

When any part of the roof, floor or external walls of your home are removed to allow additions, alterations, repairs or decoration to be completed to your home.

Retaining wall

A wall that is not part of the building you live in and is designed to hold back and retain earth or water.

Specified items Items that you ask us to cover inside your home for more than the general limits we pay for them as shown on page 66. You select the sum insured for the item and you pay an extra premium to cover it for that amount. Your Specified items are shown on your Certificate of Insurance.
Sporting equipment Equipment you use for sporting activities (including competitions), leisure and recreational activities. It does not include:
  • camping equipment, diving equipment, parachute, model craft, hang glider, aircraft, motor vehicle, motorcycle, trail bike, mini bike, motorised go-cart
  • any spare part or accessory for that equipment (including any helmet, gloves, boots, goggles or over-suit).
Temporary home or structure 

A structure you live in which is not fixed to foundations set into the ground and is not connected to services on the site.

Temporary/unfixed pool

A swimming pool that is not a fixed swimming pool which includes an inflatable or above ground swimming pool or spa that is mounted on its own accessories or on a temporary site.

Terrorism An act by any person or group, including the use of or threat to use force or violence for political, religious, ideological, ethnic or similar purposes (including the purpose of influencing the government) and/or that is intended to put the public, or any section of the public, in fear.
Tools of trade Tools that are usually used for a business.
Unoccupied  No one has been living in your home for more than 60 days and you did not tell us beforehand that it would be unoccupied for 60 days or longer. Your home is also unoccupied if someone stays there on average for less than one night a week during the 60 day period.
Uplift rate

The percentage increase used by us to increase home or contents sums insured when we offer to renew a policy. We decide what that percentage will be.

Water runoff

Water which enters your home as a result of it running off or overflowing from any origin or cause.

We, us

RACQ Insurance Limited – ABN 50 009 704 152, AFS Licence Number 233082.

You, your

The persons shown as the policyholders on the Certificate of Insurance and their family who permanently live with them at the insured address. 

Term  What we mean
 
Agreed value An amount that we agree to insure your vehicle for which is shown on your Certificate of Insurance. The agreed value includes all relevant statutory charges, GST and taxes.
Annexe A structure attached to your caravan designed to provide additional accommodation.
At fault claim Your vehicle or your caravan is involved in an incident and one of these situations applies:
  • we decide the person in charge or control of your vehicle or your caravan at the time of the incident is partially or wholly responsible for the incident, or
  • someone else is 100% responsible for the incident but you can’t give us their correct name, phone number and residential address and the make, type and registration details of their vehicle (if another vehicle was involved).

Any at fault claim you make affects your NCD (and you also need to pay any excess that applies).

Compensation amounts Any costs we pay in relation to a third party claim against you, including:
  • damages
  • interest
  • settlement payments, or 
  • legal costs (including the costs of other parties).
Contents The household goods located inside your caravan which include:
  • unfixed furniture and furnishings
  • domestic goods (e.g. pots, plates and glasses)
  • clothing, or 
  • personal effects
Dangerous goods As defined in the Australian Code for the Transport of Dangerous Goods by Road and Rail or in any related State or other legislation.
Excess The amount you pay towards the cost of each claim you make. Your Certificate of Insurance shows the type and amount of excess that applies to your policy. More than one excess may apply. 
Family Your:
  • legal or de facto spouse or partner
  • parents, parents-in-law and grandparents
  • children, grandchildren and brothers and sisters as well as all of their children and legal or de facto spouses or partners, and 
  • the children, parents, parents-in-law, grandparents, grandchildren, brothers and sisters of your legal or de facto spouse or partner.
Forced entry Illegal entry into your caravan which includes illegally using keys or picking locks. It does not include entering your caravan through an unlocked door, window or skylight.
Immediate relative Any of the following who normally live with you:
  • your legal or de facto spouse or partner, or
  • your or their children.
Incident An event which you didn’t intend or expect.
Input Tax Credit (ITC) A person or business entity that is registered for GST can be entitled to claim a credit for the GST they pay for items or services purchased in the course of carrying on their business.
Listed driver A person that is shown as a driver on your Certificate of Insurance.
Market value The market value is determined at the time of the incident by checking against values in your local market and taking into account the age and condition of your vehicle or your caravan and the kilometres it has travelled.
Modifications  Any modifications or additions to the vehicle that are not part of the manufacturer’s standard specifications for the vehicle and which enhance the performance or alter the safety or handling of the vehicle. For example alterations or additions that increase engine output or modify body structure, suspension or wheels.
Policy  Your policy includes:
  • your insurance application and any information you give us when you renew your policy
  • this Product Disclosure Statement 
  • your Certificate of Insurance, and
  • any Supplementary Product Disclosure Statement we have issued.
Premium The amount you pay for the cover we give you under your policy. It includes any government statutory charges, 
levies, duties, GST and other taxes that may apply.
Sporting equipment Equipment you use for sporting activities (including competitions), leisure and recreational activities. It does not include:
  • camping equipment, diving equipment, parachute, model craft, hang glider, aircraft, motor vehicle, motorcycle, trail bike, mini bike, motorised go-cart; or
  • any spare parts or accessories for that equipment (including helmets, gloves, boots, goggles or over-suits).
Sum insured Your sum insured is shown on your Certificate of Insurance. For more information about your sum insured for the policy you have chosen, see page 11.
Terrorism An act by any person or group, including the use of or threat to use force or violence for political, religious, ideological, ethnic or similar purposes (including the purpose of influencing the government) or that is intended to put the public, or any section of the public, in fear.
Total loss We decide it’s uneconomical or unsafe to repair your vehicle or your caravan considering:
  • your sum insured as shown on your Certificate of Insurance
  • its market value
  • the amount the repairs will cost as assessed by our assessor
  • the estimated salvage value of your vehicle or your caravan as assessed by our assessor, and
  • if your vehicle or your caravan has been stolen, and not recovered.
Uninsured third party driver A driver who you can show did not have an insurance policy that would cover them or the owner of the third party vehicle for damage to your vehicle or your caravan caused by an incident. It does not include a driver or owner who had a current insurance policy but their insurer refuses to pay all or part of the claim or avoids or cancels the policy.
Valuables Valuables are:
  • jewellery, watches, gold and silver articles
  • ornaments and display items
  • works of art
  • portable electronic equipment (but we don’t cover mobile phones and their accessories), or
  • computer equipment including licensed software.
Veteran, vintage, classic or historic vehicle  A vehicle that is subject to concessional registration if concessionally registered in QLD under the Special Interest Vehicle scheme’ is shown on your Certificate of Insurance.
We, us, our RACQ Insurance Limited – ABN 50 009 704 152, AFS Licence Number 233082.
You, your The persons shown as the policyholders on the Certificate of Insurance.
Your caravan The caravan or trailer that is shown on your Certificate of Insurance. As part of the caravan or trailer, we also cover:
  • Fixtures, fittings and appliances (including water tanks and pumps) that are permanently installed or attached.
  • Generator plant and bottled gas cylinders and their enclosures when they are in or attached to the caravan (but we don’t cover them for a trailer).
  • Anything fitted by the manufacturer as standard equipment.
  • Any manufacturer’s optional equipment shown on your Certificate of Insurance.
  • An annexe (but we don’t cover loss or damage to an annexe that is more than 5 years old, unless it is made of metal or fibreglass).
Your vehicle The vehicle that is shown on your Certificate of Insurance. For example, your sedan, wagon, 4 wheel drive or hatchback. As part of the vehicle, we also cover these accessories or modifications that are attached to the vehicle or inside it when the incident happens:
  • Manufacturer’s standard accessories for the make and model of the vehicle.
  • Other accessories or extras shown on your Certificate of Insurance.
  • Modifications to the vehicle if they are shown on your Certificate of Insurance.
We do not cover any modifications or accessories other than manufacturer’s standard accessories unless they are shown on your Certificate of Insurance.