Personal General Insurance
Core concepts
Personal lines questions cover home, motor, travel, and personal liability insurance. Know the principles of insurance: insurable interest, indemnity, utmost good faith, contribution, subrogation, and proximate cause. Understand sum insured vs reinstatement value, average (under-insurance) clauses, excesses, exclusions, and no-claims discounts.
For motor, know third party, fire and theft versus comprehensive, named driver rules, and uninsured driver issues. For home, distinguish buildings from contents, and know accidental damage cover as an add-on. For travel, understand medical emergency, cancellation, and pre-existing condition rules.
Traps
- Confusing indemnity (market value) with new-for-old/reinstatement (replacement cost).
- Forgetting average clauses reduce payouts proportionally when under-insured.
- Assuming all drivers are covered - named-driver policies limit cover.
- Overlooking excess when calculating a claim payout.
Rule of thumb
Always apply: claim payout = (sum insured ÷ actual value) × loss − excess when an average clause applies.
Worked example
A home insured for €200,000 but worth €250,000 suffers a €50,000 loss. Average applies: (200,000 ÷ 250,000) × 50,000 = €40,000, minus any excess.