Common insurance policy mistakes
When you take out a home insurance policy you have to make sure you fully understand what your cover is and what you can and can’t claim for as well as making sure you have supplied the correct information, otherwise you could find yourself out of pocket by hundreds if not thousands of pounds.
There are many mistakes people make when taking out a policy below are some things to consider:
Many people under estimate how much their possessions are worth, they also don’t always consider the valuation of all their possessions such as things that should be covered if you get burgled, often leaving out items that could be damaged b fire or flood. You should always base your value on replacing everything you own, from your kitchen mugs, to your shoes, to your carpets, to your DVDs. Insurers will only pay out on the value you give them so if the cost of replacement is higher you will have to pay for the difference.
You also need to make your insurer aware of any changes such as expensive new purchases or gifts claims for these may be rejected by your insurer if they are not aware especially if it’s a high risk item.
Accidental damage claims are common however many people are not actually covered for this, instead presume they are, then are unable to claim, accidental damage is generally only covered if you opt to take out extra cover, with an extra charge. When you take out your policy you should check the details to see exactly what’s covered and what’s not.
Its not only mistakes with your contents that can cause extra expensive but also buildings insurance, a common mistake is not fully understanding buildings insurance, you can run the risk of being under-insured. Buildings insurance is based on the full cost of rebuilding the property, and not its market value, older homes or homes that are listed or in conservation areas may cost a lot more to be repaired/rebuilt than homes that are not so should be insured appropriately.
Your insurer should also be informed if you make any structural changes to your home, an extension not only increase you homes value but it will also increase your buildings insurance premium, your insurance provider should be informed before you start any work to make sure you will be fully covered.
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