Index-linking usually means 'linking something to the rate of inflation'.
A system whereby your policy is updated automatically in line with the rate of inflation each year.
your sums insured, as stated in the schedule will be adjusted, annually, in line with approved indices and your premium will be adjusted at renewal date accordingly. If you wish to reduce your sums insured you must inform your insurer and for your buildings insurance your mortgage provider if you have one.
A system whereby your policy is updated automatically in line with the rate of inflation so that you do not have to re-apply to purchase your policy.
this is what some UK home insurance companies do to keep the sum at which your house is insured up to date. By 'index linking' insurers will automatically update your policy as the cost of building materials fluctuates.
The process of linking wages, social benefits payments, prices, interest rates or loan values to an economic index, usually of prices.
The automatic adjustment of the sum insured e.g. the House Rebuilding Cost Index is used to calculate increases to the buildings sum insured.
Where household policies are linked to inflation with adjustments each year accordingly.
