Insurance can be a bit boring, can’t it? Lots of jargon and all that. But get things right at the beginning, and you can avoid costly mistakes later on. Here we’ve put together a list of the most common and most expensive home insurance mistakes. It’s truly valuable advice.
Believe it or not, many people pay out to replace or repair things, without realising they’re actually covered for them. Make sure you read your policy documents properly so you know exactly what you can and can’t claim for.
Got a current account? It might come with Home Emergency Cover. Check if you’re already covered by another financial product before you buy more insurance.
It’s important to read your policy documents properly so that you understand what you are covered for. For example, do you know what is covered under ‘Accidental Damage’? If you don’t, it’s important to find out, so make sure you speak to your insurer.
In the event of a disaster that might require a full rebuild, your buildings insurance cover might not be enough.
If you undervalue how much things cost to replace, you might not be fully covered for them. If you overvalue them, you could be paying too much to insure them. This is particularly important for jewellery or specialist items like musical instruments and works of art, so make you get your items valued regularly. Each policy is different so check for limits that may apply.
For example, it’s common that wear and tear is excluded from your cover so always make sure you read and understand your policy documents.
Excess is an amount of any insurance claim that you have to pay. If it’s too low, you could end up with a larger premium. Too high and you’ll obviously pay more if something goes wrong and you need to claim.
If you need to make a claim, you should always do so as soon as possible.
Started a home-based business? Had an extension or are you renting out your spare room? Any change in the property use could mean a change in your premium. So if in doubt, check with your insurer.
For example, what if your tree falls onto your neighbour’s fence? Most home insurance policies include liability insurance to cover those named on the policy so check how much your policy covers you for.