Glossary

Agreed value

The amount for which we agree to insure your vehicle. We work out the amount based on the fair value given for your vehicle’s make and model.

Accident

A sudden, unintended and unforeseen occurrence.

Accessories

Things which have been added to your car but don’t enhance its performance, like stereos, mag wheels and navigation systems. 

Apportionment

The process of allocating damage across multiple events, based on which event caused the damage.

Claim

When you tell us about the accidental damage to or loss of your insured property (your car, house or possessions) and you ask us to reimburse you for it.  A claim includes where we will pay for your liability only.

Cover

The insurance we provide to look after your belongings.

Common materials and methods

Building materials and construction methods normally used within the New Zealand building and construction industry at the time of reinstatement.

Contract Works Insurance

Typically home insurance policies exclude damages caused by renovations or construction work being done to the property; therefore contract works insurance is required. It provides cover for physical loss or damage (to permanent or temporary construction works) at the contract site or materials in transit to the site.

Consequential loss

Loss of value or additional expense arising as a consequence of an event; e.g. the cost to replace undamaged property to create a uniform appearance.

Current value

The market value of the home immediately prior to the accidental damage, with due allowance for age, wear, tear, depreciation and degree of maintenance.

Customer Manager

Customer Managers at AA Insurance look after you when you make a claim.  They’ll keep you fully informed and make sure things stay on track and are hassle-free.

Depreciation

Taking age, use and condition into account when establishing what something is worth immediately before it was damaged or lost. 

Exclusion

A provision in a policy that means certain circumstances are not covered.

Excess

When you make a claim, you pay a small part of the cost and we pay the rest.  Your part is called the excess. The cost of your excess depends on a number of factors.  You pay an excess only when you make a claim.

EQC Cap

Your home insurance cover with your insurer is triggered once the cost of the damage to a home from any one event reaches the maximum amount the EQC will pay - $300,000 (excl GST).

Insured

The person named on an insurance policy.  Most often, this is the person who owns the property. If you want to insure an item which you and another person own together, make sure to tell us so that we can name both of you on your policy, and both of you can make a claim or changes to your insurance.

Indemnity value

The current value of an item, taking into account its age and condition at the time of loss or damage.

Liability

When you are legally responsible for damaging someone else’s property.  For example, if you crash into someone’s fence, you are liable, or legally responsible for the cost of repairing the fence.

Lapsed policy

A policy terminated because of non-payment of premiums, or that has expired at the end of the period of cover without renewal.

LIM

A Land Information Memorandum is the information held by the Council about an individual property. As a result of the earthquakes, new information to be placed on LIMs will include land zoning, technical categories, updated floor levels, whether a property has a section 124 or other Building Act notice, and information on liquefaction risk.

Loss Adjuster

A professional employed to survey and assess the damage and recommend the most suitable methods for repair.

Modification

Things which have been added to your car to change its performance, like a turbo upgrade, blow-off valves or upgraded mufflers.

Market value

The reasonable retail value of your asset immediately before it was damaged or lost.

Natural Disaster

Earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami or fire resulting from any of these. It does not include any gradual or slowly moving natural landslip.

No fault, no excess

If you’re in an accident that wasn’t your fault and you can identify whose fault it was, you may not have to pay any excess. Please see your policy document for more details.

Other driver

The driver of the other vehicle in the accident.

Period of Insurance

The time you are insured for, as shown on your policy schedule.

Premium

The amount you pay for insurance. What you pay depends on the type of insurance you want and the likely risk of damage or loss to your possessions.

Policy

This is your insurance contract with us. It includes your policy documents and your most recent policy schedule, the information you have provided in your application or declaration, and any information you provide us regarding any change in circumstances.

Policy document

This is the booklet that sets out what is and isn’t covered under your policy.

Policy schedule

This contains personalised information about the insurance you have with us.  It contains your level of cover, excess and details of special things that you’ve insured.

Quality Repairer Network

A select group of skilled repairers we have chosen to service our customers’ vehicles.  We provide a lifetime repair guarantee on all the repairs made by our Quality Repairers.

Renewal

An insurance policy generally covers a 12 month period.  Before your period of insurance ends, we’ll send you a renewal notice that is an offer of insurance with us for another year.

The notice details the terms of your insurance policy for another year, such as your premium, amount of cover, Agreed Value, excess and so on.  By paying your renewal premium, you have accepted this new agreement.

Reinstatement report

Provides the estimated costs to repair/rebuild each room, including measurements and building materials used in the property.

Scope of Works

Detailed costing of the reinstatement work that needs to be carried out on the property.

Sum insured

The maximum that we will pay in the event of a total loss. Your sum insured is shown on your policy schedule and you should review this value at each renewal of the policy. To find out more about Replacement Cover, please see Home Insurance and Landlord Insurance.

Total loss

When your property has been damaged to an extent that we don’t think it can be economically or safely repaired.

Third Party

The other person involved in the accident.

Uninsured driver

A driver who damages your car or property and doesn’t have insurance of their own.