We’ve all heard the common saying “you get what you pay for” yet we can’t deny that price plays a part in why and where we buy something…
Take home insurance for example, whether you rent or own a property, you care about what happens to the contents and often the building as well. So, if something happened to your home or possessions you rely on your home insurance to help you put it right.
The popularity of comparison websites is usually down to the lure of low premiums but how much thought is given to the quality of the policy?
Here are some tips on what to look for when arranging your home insurance:
1. Do I really need “unlimited” buildings and contents cover?
It depends why you’re looking for “unlimited” insurance. If you’re unsure of how much your building and contents would cost to replace anew and you don’t want to pay for a valuation, having unlimited sums insured can be a good option. However, its important to understand what is “unlimited” and what isn’t.
Our advice would be to look at the following;
- “Inner Limits” – these are caps on how much you can claim for specific items and for a particular group of items. As well as single article limits that apply to high risk items (jewellery, watches etc), bikes and possessions away from the home, there are also limits that dictate the maximum cumulative value acceptable. Some “unlimited” policies will have inner limits which might not be enough for your possessions. It depends on what you own. If exceeded, you may not be eligible for the policy.
- Definitions of areas such as high-risk property, business equipment and personal possessions will vary. While you might buy an “unlimited” cover policy, some insurers will include items such as TVs, computers, tablets and stereo equipment within their definition of ‘high-risk’, alongside jewellery, watches and artwork etc. As well as being subject to inner limits on single and cumulative value, it also makes it easier to exceed the eligibility criteria of the product.
- Number of bedrooms – please make sure you’re counting all your bedrooms correctly. Some “unlimited” policies do not cover properties with five or more bedrooms and all of them use the number of bedrooms to establish premium. If you’re currently using one as a study or music room, an insurer might still count it as a bedroom. Your insurance could be invalid if you’re perceived to have misled your insurer.
2. Are legal expenses and home emergency cover included as standard?
Some providers see these as “optional extras”, even on an otherwise well rounded policy. As an optional extra, you’re likely to pay more to add them to your policy.
Legal expenses may be helpful when it comes to noisy neighbours or tax investigation costs. Home emergency can be useful for problems like heating failure, or a smashed window, which leaves your home insecure.
3. What about contents covered away from the home?
This is something that’s often overlooked. When you leave your house to go to work, go on holiday, do the school run, what do you have on you at the time? A mobile phone? A watch on your wrist? Engagement or wedding ring? If these things were lost or stolen whilst away from your home, would that amount of money be covered on your policy? Most policies won’t cover this as standard, so it’s always best to check.
Key things to remember
Understanding the policy
When looking through quotes online or talking to an adviser through a broker, make sure you understand what’s included as well as reading the terms and conditions of the policy. It may sound tedious but it could prove to be the difference as to whether a claim is paid or not.
Customer reviews
It’s worth taking the time to search for customer reviews of insurance companies and try to find a common theme. Look out for a company who offers great service, including how they deal with claims and if they offer extensive levels of cover.
The most important thing to consider when looking at home insurance, whether you own your house or you just have your contents covered, is can you afford to buy it all again?