House
Insurance
Information
How
to get the right home insurance
When
it comes to home insurance, most people are just concerned
with getting the cheapest deal on the market. But going for
cost over quality can leave you in hot water when it comes
to making a claim. When taking out home cover, it pays to
take a closer look at the small print before signing on the
dotted line.
1.
Check your single limit
The single limit is the maximum that the insurer will agree
to pay out for one item. This is generally between £1,000
and £1,500, but if you own particularly valuable technology
or jewellery then it’s worth applying for an increase.
Items valued over this limit may need to be named separately
on your policy, or you may even need to take out a separate
policy to cover them. If you fail to do so then the insurer
is unlikely to pay up the full value, even if you have kept
an inventory and receipts.
2.
Do you need accidental damage?
Many home insurance policies will only cover break-in damage,
or damage caused by ‘acts of God’ such as flooding.
If you think that you might need accidental damage cover (for
example, if you have particularly destructive children or
have a DIY enthusiast living in your house) then you may need
to take it out as an optional extra. Some insurers will charge
over the odds for this, while some will include it automatically,
so take a look around before you commit yourself. Larger providers
of house
insurance, such as the Co-operative bank or Direct Line,
are generally more likely to include a bigger range of cover
as standard.
3.
Conduct an annual inventory
It’s important to reassess the value of your home and
its contents regularly. A recent survey by the British
Insurance Brokers Association concluded that 70 per cent
of British households are under-insured, because most people
fail to add new gadgets, designer clothes and home entertainment
systems to their policy. These items would not be insured
should your home suffer accidental or purposeful damage.
4.
Keep your insurer informed
Failing to keep your insurer up to date with relevant information
can invalidate or reduce the value of your policy. If you
are going away for a long period of time then it’s important
to inform your home insurance company. Similarly, if your
area becomes classified as a flood zone then you need to let
them know.
5.
Know what is covered and what is not
Choosing the level of cover you need and what it applies to
is a good way to avoid nasty surprises if you need to make
a claim. The best way to do this is to shop around on the
websites of home
insurance providers like ASDA Finance, Endsleigh or Elephant
to see what types of cover are on offer. For example, some
policies will offer protection for your children’s possessions
when they are at university, or even limited cover of your
valuables when you travel. Remember that home insurance may
not cover things like tools, money and credit cards as standard.
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