The Dangers of DIY Insurance

Thursday, February 6th, 2014

DIYA customer of ours recently contacted us about his house insurance policy that was shortly coming up for renewal.  We had sent him his renewal quotation in the post and, as is usually the case these days, he had shopped around online to get some comparative quotes. We had quoted him a figure of approximately £1300 for his renewal which was the most competitive quotation we could obtain from our panel of insurers. His policy was a high-net worth policy and included worldwide contents cover and cover for some high value items. He advised us that he had obtained a quotation online of approximately £350 for a like-for-like policy. Of course the first thing we asked him was if he was sure that the quotation he had obtained online covered everything he needed.  He said it did, and we were obviously shocked at how cheap his quote was.

As he was a long-term customer of ours we asked him if we could have a look at the details of the quotation so we could double check it, he said that was fine and sent the details over.  Once we had looked at it the reason for the cheap price became obvious – the quote didn’t include cover for some of the high value items he had, it didn’t include accidental damage cover, it didn’t include worldwide all-risk cover for his contents and there were other pieces of information he had input into the system which were incorrect which were also affecting the premium.  Once we had corrected the mistakes and amended the quotation to include the same cover as his existing policy the quotation came out at over £1400 meaning our quotation was now less.

If he had taken the online quotation this could have left him in a very precarious position as most insurers will apply an average insurance clause to home insurance policies meaning that if a client under insures themselves by, say, 30% then they will only pay a maximum of 70% in the event of a claim.  Imagine the scenario if you only had 70% of a theft claim paid out for example, this could potentially cost you thousands of pounds.  Do you really want to take that risk?

That is why it makes sense to talk to a professional company like us who can make sure you are getting the exact cover you need. We are here to ensure that you never find yourself in a situation where you are under insured.

So speak to us today about all of your insurance needs and we are confident we will find the right policy for you.