|
Is your home under-insured? 7 key tests
Get a quick home insurance quote 
Many homeowners underestimate the real value of their home and its contents when it comes to insurance. Home insurance provides home owners with a financial safeguard should their valuable asset be struck by disaster or their possessions are damaged or stolen.
When taking out home insurance it is important to make sure you have the correct level of cover. This will protect you financially should your home and its contents be damaged by burglary, flooding and storm damage, fire or other such disasters. The questions which follow should help you to make sure that you have not under-insured your home. - Is your sum insured up to date? This is the maximum the insurer
will pay out in the event of a claim. The correct level of buildings cover
should cover the full rebuild cost of the property and not the market value.
Contents insurance should include all the possession inside your home. Remember
to update your policy with any new purchases or home improvements.
- What is the single item limit? Most insurers will pay up to a maximum
of £1,500 but this limit does vary dependent on the insurer. Always
inform your insurance company of any expensive individual items you wish to
include on your policy. It may be necessary to pay a higher premium or take
out a separate policy. These options are often worth it to protect your valuable
possessions.
- What are the Policy exclusions? Remember that the cheapest quote
does not always offer the most comprehensive insurance. Always make sure you
have checked the policy terms and conditions and exclusion to make sure that
you are happy with the level of cover provided. Failure to have the correct
level of cover could result in the insurer refusing to pay out in the event
of a claim.
- Do you have 'new for old' cover? This is also known as 'replacement
as new' cover and means the insurer will pay out for the price it would cost
to buy the items new. Most insurers will not provide 'new for old' cover on
clothing, household linen, bicycles and audio/visual and computer equipment
over five years old that has been damaged accidentally. For these items, a
deduction is made for wear, tear and depreciation. In addition, deductions
are made if items are not replaced or the sum insured does not represent the
full cost of replacing the property insured.
- Are your securities measures are approved by your house insurer?
Insurers tend to favour mortice deadlocks and rimlocks that conform to British
Standard 3621 and a NACOSS approved alarms. Make sure that you always lock
doors and windows and set the alarm if you are leaving your property for any
period of time.
- Do you live in an area at risk of flooding or subsistence? If
you live in an area prone to flooding and do not have house insurance it
is very important to inform your insurer. When you take out a policy, failure
to tell the insurer the truth about your property and the area may result
in the claim being rejected.
Living in a flood zone will often mean that you have limited house insurance options available. The best advice from the industry is stay with your current insurer and not to be drawn by the lure of different prices or schemes from other insurers.
It is rare to encounter a problem (such as flooding) with house insurance as an existing owner, the hitch comes when a house is sold and the new owner tries to secure home and contents insurance. To prevent being caught in this trap, ask the current owner of any problems they encountered when insuring the property. If the existing owners have experienced problems, find out the name of the insurance company they used to ensure the most appropriate cover.
- Have you shopped around to compare insurers? It pays to shop around
when looking for home insurance as different insurers specialise in different
risks. One insurer will often offer a more suitable product at a more competitive
price. Use the Insurancewide House Wizard to find the most suitable insurers
for you and your home.
Get a quick home insurance quote |
All of the insurance products and services mentioned on this
page are introduced by Insurancewide.com Services Ltd, which is authorised
and regulated by the Financial Services Authority. Insurancewide?s service
is subject to its terms
and conditions |  |
|
|
6 Insurance Rip Offs
