This April Fool’s Day a word of advice, if you’re hunting around for home insurance and have found a premium that’s far cheaper than all the others, then before you hit buy, check what you are really covered for.
Here’s 5 ways to avoid being the April Fool when you purchase new home insurance.
1Have you got your contents sum insured correct?
Some home insurance policies allow you specify the sum insured, some just give a blanket cover. Getting your contents value too low will result in a cheaper premium but will also mean heartache if you are underinsured, with claims not paid in full or worst case, refused.
Not sure how much contents insurance you need – use our handy contents valuation guide.
2Check those excesses
The higher the excess, the lower the premium. Make sure you compare like for like when buying insurance. Does that lower premium actually mean you are responsible for paying the first £500 if you have a claim? Can you really afford that or is it a false economy?
3What are you covered for?
Insurance covers a range of perils such as fire, flood and theft. But you need to read the small print because there is no such thing as standard cover. For example, some policies might include accidental damage but very often you need to specify this. We can’t all be insurance experts who like to read the small print but if you use a broker their job is to point out the difference between policies and advise you on the best cover for your situation.
4What aren’t you covered for?
Like the cover, exclusions aren’t standard. Some might exclude theft unless forcible or violent entry whilst other policies pay for lost items no matter the circumstances. Your broker will point out all the exclusions to be aware of.
5The claims experience
Unfortunately the only time you really get to appreciate the true worth of your insurance is if you have to claim. And then it’s too late to change your insurance when you realise the level of service isn’t up to scratch or your claim won’t get paid in full. Check out the claims history and reputation of the insurance company before you sign up for that cheap premium. Or better still use a broker who has personal experience of dealing with claims with each underwriter and will advise on the best insurance companies to go with.