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Confused by contents and buildings insurance terms? Not with our jargon buster...

Sometimes the insurance industry can be its own worst enemy. It's an old business - Norwich Union has been in business over 200 years - and arcane terms and modern acronyms can make things confusing.

We've had a look at the terms that people find most confusing - and explained them. So if you don't know your matching pairs from your excess, then read on...

Accidental damage

Your basic contents insurance policy usually only provides cover for accidental damage to Home Entertainment equipment and fixed glass in furniture. Remember, if you want accident damage cover for all your contents then you'll probably need to take out extra cover - ensuring the dreaded red-wine-on-carpet spills are taken care of!

Excess

Our research* has found that nearly a third of us (30%) don't know what an insurance excess is. To keep premiums low, insurers normally ask customers to pay the first part of any claim - this is the 'excess'. Some excess is normally compulsory. But if you agree to a voluntary excess on top of a compulsory one - for instance, pay the first £200 instead of the first £100 of a claim, then you reduce your contents or buildings insurance premium even more!

* Norwich Union, Your Policy Uncovered report, January 2007

Gradually operating cause

Sounds technical but simply means damage by Mother Nature that occurs over time. Buildings insurance isn't a maintenance contract: it's there to help with unforeseen events like fire, flood and sudden, severe weather. So remember, it's your responsibility to keep your property in good order.

Matching pairs and sets

A standard buildings insurance policy only covers the cost of replacing or repairing the damaged item in question, even if this forms part of a matching set. If the claim is for part to a bathroom suite or kitchen units, the whole suite won't be replaced - just the damaged item.

Loss within the home

Basic contents and buildings insurance policies usually cover loss or damage by specific causes like theft, fire, subsidence, storm or water damage. 'Personal belongings' gives wider protection for clothing and other personal items covering accidental loss or damage happening both in side and away from the home (including while abroad).

Personal belongings

Contents insurance only covers your belongings when they are inside the house. If you want cover for items outside the home, you'll need personal belongings insurance as an optional cover. This gives you peace of mind for the items you might normally take with you when out and about - mobile phones, sports equipment, laptops or jewellery, for example. Personal belongings insurance generally covers your possessions anywhere in the world - so you won't need to include baggage cover on your travel insurance policy.

Wear & tear

Buildings and contents insurance is not there to replace or repair things that have simply deteriorated over time. Areas commonly prone to 'wear & tear' on a building include guttering, flat roofs, fascia boards and boundary walls, and these should all be checked on a regular basis. In the home, this includes things like showers, shower screens and electrical appliances.