What does the term "index linked" mean when used with buildings insurance cover? - {term} index of / {jpg}

Indicated usually means that the maximum amount that the insurance company pay for the complete reconstruction of your home if it is destroyed is (often) by fire, but also a gas explosion or other accident linked to an index.

The index most commonly in the United Kingdom is the Royal Institution of Chartered Surveyors index of the cost of reconstruction, as in an earlier reply. But it may be, and its policy document will tell you what the speed. It could be the CPI or RPI, however, occur most insurance companies in the United Kingdom RICB more specific index.

His cousin is not connected in this index. The insurer will determine what premiums each year and depends on many factors, one of the most important is the competitive pressure. Your premium could go, even if the insured has increased.