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November 2010 Newsletter – Is your Buildings and/or Contents Policy everything that it should be?

November 28th, 2010 Posted in Monthly Newsletters

Is your buildings and/or contents policy everything that it should be?

Have you ever examined your home insurance policy to ensure that it covers everything you require, or did you simply purchase the cover based on cost or because it was the easiest option available to you at the time? If the answers to the second parts of the question are yes, then you are certainly not alone! Home insurers are increasingly offering certain aspects of cover as optional extras rather than as standard features, meaning you may not be covered for something you thought was automatically included.

As an example, a recent survey of 299 household contents policies found that only 18% of insurers include accidental damage automatically. What is accidental damage? Accidental damage is cover you can take out under the contents section of a policy, which provides cover for damage caused accidentally to your personal belongings whilst in your property. At the other end of the scale 97% of insurers cover loss of water automatically, which means that 3% of insurers would not cover this within their standard policy. These are just two areas of cover within a buildings & contents policy, there are many more to consider based upon your specific policy and circumstances.

Make sure you have the type of cover that you actually want. For example, some of the cheaper home insurance policies for contents are known as indemnity policies. This means that if you need to make a claim the company will assess how much wear and tear the item will have suffered in its life and will provide you with the money equal to the current market value. So if you have a five year old three piece suite and it gets destroyed in a flood, the company will give you a sum of money equivalent to a five year old suite, not a new one. If you need the insurance money to allow you to go out and buy a new three piece suite then you would require “new for old” insurance cover.

In the current economic climate it is perfectly understandable that consumers are naturally more price focused. However, it is crucial that people understand policy features to ensure they choose the right type of cover and avoid the risk of underinsuring their home. Here at The Mortgage Store we offer buildings and/or contents cover through an extensive panel of insurers. This means that we can fully guide you through the benefits of different policies and assist you by recommending the most appropriate policy to meet your requirements and budget.

To find out more why not contact us Today

We look forward to hearing from you.

For further details or to arrange an interview please use our ‘Contact’ Page.

For a PDF version of this newsletter please click the PDF icon: The Mortgage Store Newsletter November 2010 PDF

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