It seems to happen more and more that people are getting a quotation for a home insurance policy and yet they don’t actually know what cover they require or what cover they are paying for. It gets worse as many don’t know what cover they already have on their existing policy let alone if there are endorsements or exclusions and what these actually mean.
For a while now each time we have had an enquiry for building and/or contents insurance we have been asking to see a copy of the existing home insurance documents.
We do this for a number of reasons which include comparing the cover on like for like basis, seeing the sums insured and level of cover, the policy limits, terms and conditions, and most importantly checking the client is adequately insured. We do not simply copy the figures from the existing policy then offer a quotation, we speak to the client and find out about the risk which includes asking about the value of their possessions, especially their valuables which is defined as jewellery, watches, and items of precious metals, whether they have been valued recently, advise on the implications of not having up to date valuations, and the dangers of under-insuring these items or the sums insured as a whole.
Insurance is a business and like many businesses insurers need to make money. Insurance is not here to pay out on every claim without verifying the circumstances, damage, and amount claimed. Claims need to be genuine and most importantly the information on which the policy is based needs to be correct. Insurers do invalidate and void policies once they are aware of incorrect or fraudulent information, and most of the time this is after a claim has been reported. This is when the policyholder feels aggrieved and that the insurer is using any means to avoid their obligation and get out of paying a claim.
So it is quite simple to avoid this situation, all you need to do is make sure you understand the questions being asked, you answer correctly and truthfully, and you disclose any information relevant to the risk.
We will help and offer advice throughout the quotation process so you are safely in the knowledge that should you be unfortunate enough to make a claim you will know that all the information is correct and that your claim will be settled without worry.