Recognised index of changes in the cost of rebuilding houses produced by Building Cost & Information Service Ltd of the Royal Institute of Chartered Surveyors. It is used by insurers of buildings under household insurances as the basis of automatic increases in the sum insured on renewal where the policy concerned is subject to indexation.

The term, according to the decision in Oldfield v. Scott and Jackson (third party) (Oldham County Court, 24 July 2002), refers to persons with whom the policyholder normally resides at home. Miss Oldfield’s injury was caused by her holiday companion, Scott, who arranged travel insurance that excluded claims by members of the insured’s household. Oldfield did not reside with him and was not therefore a member of his household. The insurer could not benefit from the exclusion. The term is defined in some policies.

Most insurers allocate fixed or maximum sums insured that are usually index-linked. Cover may be on an accidental basis in respect of buildings, outbuildings, etc. Additional coverage areas include: alternative accommodation following insured damage; trace and access faults; lock replacement; property owners’ liability; emergency repairs. There will invariably be an unoccupancy clause.

Contents are defined and can be insured ‘new for old’ or on an indemnity basis against named perils or against ‘accidental damage’ basis. Sums insured are fixed at the outset but index-linked. There is limited cover for contents in the open and theft from outbuildings. Additional coverage areas include: alternative accommodation; loss of water; freezer contents; temporary removal; business equipment; personal liability; occupiers’ liability; employers’ liability for domestic employees. The policy contains an unoccupancy clause. High risk property is subject to an inner limit sum insured and a single article limit.

Private dwellings insurance on buildings and contents. Policies are either ‘comprehensive’, i.e. covering a range of named perils, or on the wider accidental damage basis. ‘New for old’ cover is available in connection with contents. See HOUSEHOLD BUILDINGS COVER; HOUSEHOLD CONTENTS COVER; HIGH RISK PROPERTY.

Covers the contents of a house during the house removal process. Household contents policies apply only to property ‘temporarily removed’; also they do not apply to furniture removed to a depository. Removal is usually ‘all risks’ cover and may be subject to a condition that the removal or the packing is carried out by professional removers. Cover applies for up to seven days but may be restricted to 48 or 72 hours.

Amphibious vehicles insurable against accidental, fire and theft. Cover operates during road transit in trailer or on low loader. Third party and passenger liability applies. Special terms apply for racing and/or business use. The Hovercraft (Civil Liability) Order 1986 amends earlier legislation in matters relating to civil liability for injury to passengers and loss/damage to baggage.
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The insurance of air cushion vehicles in respect of damage to hull or liabilities.