Archive for contents insurance

Do You Know What Your Home Insurance Really Covers You For?

How many of us actually read our insurance policy documents when they drop through the letterbox? Insurance Blogger has just renewed my home insurance and the particular policy booklet is thicker than the local freeads, that arrived at the same time. So this got me thinking about all those people who purchase home insurance cover online and are probably under-insured in some minor or major way!

Although many people who own their own houses in the UK are likely to have some type of basic insurance policy on their property, the extent of that cover, sometimes turns out to be entirely inadequate for the misfortunate few who thought they had bought a good deal.
Stop for a moment and think: You have worked hard to purchase and maintain your house. Why risk losing it or its contents because you have tried to save on your home insurance and have not considered what really needs to be covered?

Specialist House Insurance – The Problem with Standard Home Insurance
If you have a standard home insurance policy, you might think your home’s contents are completely covered under your contents insurance section. Although this could be right to a certain degree, the thing is that some types of home insurance policies that put limitations and restrictions on the cover they supply as described in the policy booklet and online keyfacts documents.
These types of restrictions dramatically add to the possibility of your exposure to a considerable loss which could force you to spend thousands of pounds out of your own pocket to cover the difference. Here is what happened to a person who had a simple level of cover bought through a standard home insurance comparison site, instead of through a specialist provider. This policyholder couldn’t recover the complete cost of a broken Hasselblad camera due to the fact that it went way beyond the policies specified item limits.

Specialist House Insurance – Hobby Camera’s Worth Exceeds the Policy Limit
This example of a loss started when a policyholder dropped and caused harm to his new Hasselblad camera. The man was taking photographs of his relatives away from his home at the time. It was an expensive camera with a value of approximately £6000. The man furthermore had paid an additional premium on this particular home contents insurance to safeguard articles like the camera whenever they are carried off premises.
The client thought the camera was entirely covered under his “enhanced” home contents insurance and put in a claim. The insurance company took the claim but paid only £1500 because this was the policy limitation.
The policyholder then tried to get reimbursement for the remainder from yet another purchase protection plan he had purchased from another company. This company discarded the customer’s claim because the camera was covered under the client’s other home contents insurance, though it wasn’t covered for its total replacement value.

The moral of the story ? Take into consideration buying specialist high value home contents insurance coverage if you value your contents.

Why Do You Need High Value Contents Insurance?
If this policyholder had high value specialist contents insurance, he would not have had to to acquire that second purchase protection coverage and would not have been caught in the “double recovery” trap, which allowed the purchase protection insurance company a basis to turn down the claim. Whilst there does need to be precautionary measures to deter claims from being paid by two separate insurers, it’s even now feasible for actual, documented losses to be denied. A specialist high value home insurance policy would have covered the complete £6000 cost of the camera, if the policyholder had compelling proof of its price. This case is a normal instance of the time-consuming and demanding nature of disputes that often arise with a standard home insurance claim.

Thoroughly comprehending the terms and conditions of your home insurance cover is a crucial issue in obtaining adequate cover online. If you have high value items that need specialist cover, it is best to talk to specialist home insurance experts such as Higos Insurance Services.

New Online Crime Maps launched in UK

Did you know there was a burglary last week in your road?

Ever wondered why you home insurance premiums are so high?

Well from now on you can find out whats been happening in your area with a new online crime mapping service from the UK Police.

The maps based on Google Earth and using a streetview pointer  allow you to zoom down to see crimes commited in each street.

police crime map

What surprised Insurance blog was that for every postcode we entered, the biggest crime was anti-social behaviour!

We’ve been checking the contents insurance risk areas against the crime maps and sure enough there is a strong correlation between those areas and current high incidents of burglary.

Insurance companies, house buyers, estate agents, credit profilers and many other institutions will probably be using this database everyday once it develops. It already has a twitter feed from your local PCs!

Specialist Home Insurance is often Cheaper!

It’s that time of year again when frost and ice damages your property and your home is at higher risk to fire and pre Christmas theft!

Home Insurance has really suffered during the recession of the last two years as homeowners have cut out what are often mistakenly seen as marginal expenses. Consequently the potential market is larger now which explains the plethora of Home Insurance ads you see on TV all day long at the moment!

Wherever you live, you should have protection for your buildings and contents and this is of particular importance if you have invested a lot of time and money in your home. In this case you may be much better off if you visited an online specialist home insurer, who can provide you with a range of quality policies to choose from, which will protect ALL of your property.

Specialist Home Insurance is often cheaper if you have own a non-standard construction property which includes a range of covers for buildings of thatched and stone construction through to blocks of let flats. You should also consider going to a specialist home insurance broker or provider if you own a large multi bedroomed house or have specialist contents insurance requirements.

For home owners in the UK, purchasing the best insurance cover is of the most significance. Lots of people individuals, even so, usually do not take the time to examine the terms and conditions proposed by the home insurance policy they buy from a price comparison website. These same persons often realise too late, that their cover is not enough. This is most often the case for those who are in possession of high value homes.  Below is some detailed information about ways to provide proper coverage for a high value home with specialist home insurance.

Specifically What is a High Value Home?

High value homes are buildings which, for a variety causes, retain a worth superior to a typical home. Your property is apt to be though of as high value when the price of rebuilding it should surpass £200,000 or if the contents of your house are assessed for over £40,000. Before acquiring coverage, it’s always a good idea to have your house and contents valued by a skilled appraiser. Only then can you be positive that your cover is sufficient.

The problem with Standard Home or Household Insurance

Most house insurance insurance policies are designed with an average policy holder in mind. The cover assumes a typical family size of 2 to 4 that owns a 3 bedroom residence. While this variety of cover may possibly appear to be relatively inexpensive, there is certainly a reason. These kinds of policies usually have a range of restrictions and exclusions that can prove disastrous if you have a significant loss or claim. …..

Usual Exclusions Established in Standard Home Contents Cover

The upper limits of a standard contents coverage can be too low, meaning that you’re considerably under-insured. In addition, the single object limit on this sort of policy not likely to denote the worth of things in your home, such as jewellery, antiques or paintings. In numerous insurance policies, the single merchandise restriction is as little as £1500, a sum that may possibly not be ample for many high value products. Even when you are able to obtain cover, the Insurance company may possibly enforce severe (and costly) protection conditions, for example mounting new window and door locks, or even an entire alarm system. If you don’t follow these terms, the insurer may repudiate any claim.

What to look for in High Value Home Contents Cover

Lots of high value cover policies offer a set of additional benefits that can be really attractive. For example, your policy may contain legal protection for both you and your family. Yet another quality to seek is “agreed value” cover for high value objects. In this sort of cover, you and the insurer are in agreement on a particular amount of coverage for certain sole items, usually jewellery, fine art or antiques. Then there is “new for old” cover in which the value of articles misplaced or spoiled isn’t reduced, which means that you get the complete value of an insured item and not a proportional amount of it’s current value.

Finally ensure that you read carefully and understand your specialist home insurance policy conditions for high value articles, both in blanket coverage and single article cover.

UK Housing Market Home Insurance Mini Boom

Wthether it’s a sign of Spring or the green shoots of recovery, recent activity in the UK housing market has seen an appropriate response from the major UK home insurance companies, with a multi million pound spend on prime time TV advertising.

The home insurance market had gone quiet in recent months but recent positive indicators in the housing market have led to this bombardment on every TV and commercial Radio station. Home Insurance is definitely the flavour of the month with the market under capacity due to many people cutting levels of cover or dropping covers completely because of the recession.

So what’s been happening in the UK housing market recently to have caused this big budget spend?

Well in April house prices had risen by 8.5 % since January which is a startling recovery in itself, and the figures for the number of valuations carried out in May confirm the trend with Valuation activity in May up by over a quarter compared to May 2009, according to the latest research by Connells Estates Survey team.

This confirms that both the supply side of housing and the demand side from potential buyers appear on the face of it bouyant. It remains to be seen if the Bank Assurers are prepared to underwite this economic activity with the supply of mortgages necessary to complete all these potential deals.

The most up-to-date figures currently available from the Land Registry show that during February 2010, the number of completed house sales in England and Wales rose by 49 per cent to 40,502 from 27,190 in February 2009. It will be interesting to see if there were as many sales during the period since February of rising house prices.

The new Government are also sending out mixed messages about the housing market.

On the one hand they have scrapped the regional development of 600,000 houses for low paid workers around the country, presumably to let the vacuum be filed by property developers.
Then on the the hand they intend to hit the private landlords and developers hard in the pocket with large increases in Capital Gains Tax.

Some commentators are saying that 30% of the housing demand is from private investors and forcing a CGT tax-hike on property investors will drive many from the housing market at a time when its recovery is still perilously fragile.
What utter tosh – these are the same people that have seen the values of their properties increase by 400 percent plus over the last ten years. Some of these so called investors, whose greed initially generated the demand that created the massive price rises and forced ‘joe public’ out of the market, own portfolios of 10 20 30 or even 500 properties!
Either way the home insurers are not bothered, because where they once sold a specialist home insurance product to a Landlord they can now sell a standard home insurance policy to a home owner.

Were they all bankers at Monopoly when they were kids?

These people are just as much to blame for the current recession as the Banks that made credit readily available for them to play their easy money games. The toxic debts were only toxic because house prices were artificially inflated by these pariahs and normal people looking for a home were tricked into buying into negative equity without even realising it!

Personally Insurance Blogger thinks CGT should be raised even higher! Those who made all the profits that caused this recession should be made to pay now!

As for the detrimental effect on the housing market and possible falling prices leading to new negative equity….
Well that’s market economics for you and you can only temporarily stop the deflationary pressures that must happen in order to bring new entrants to the market. A market that sorely needs affordable housing where the profits are not going into the hands of a few un-entrepreneurial feudal landlords!

A Quarter of Home Insurance Policies Cancelled As Recession Grips

One in four people have cancelled or not renewed their annual home insurance in order to save money during the recession, according to a recent survey carried out for the association of British insuraers (ABI)

The research carried out by a national survey of over 2,000 adults conducted by YouGov, on behalf of the ABI, also shows that other insurances that are seen as ‘luxuries’ such as life insurance are also being ditched, as families try to balance outgoings with income, in what is already in most homes a seemingly impossible task.

The survey found the following worrying trends for the UK Insurance market:

Nearly a quarter of people 22% say that to save money in the last year they have cancelled or not renewed their home contents insurance.

More worryingly, 17% say that they have cancelled or not renewed their buildings cover, some probably against the terms of the mortgage that usually insists that buildings cover is in place to protect value of the charge on the property.

In Scotland, the figures rise to 28% for contents and 21% for buildings.

13% have cancelled their life insurance.

One in five (21%) say that they are seriously considering reducing or stopping saving. (Well with Interest rates so low – who can blame them!)

This lack of cover is leaving many families even more exposed to their biggest fear in the recession: nearly half (49%) of those surveyed said that they currently worry about their in ability to cope with a sudden event, such as a burglary, accident or loss of employment.

Interestingly, other research found that :

Over half (53%) of women worry about how they would cope with an unexpected event (compared to 43% of men).

And 44% of women are worried about the adequacy of their pension (38% men), reflecting lower pensions among women.

Asked what cutbacks people have or would be making: over two thirds (68%) said that family treats, such as eating out, were top of their list, followed by holidays (56%). Six out of ten women are prepared to reduce spending on clothes and shoes.

Insurance Blogger urges those thinking about cutting back on home insurance cover to consider what would happen if their house was burgled or flooded?
With rising crime and rising floods a couple of hundred pounds on a home insurance policy might seem small beer if the worst occurs.
Shop around for home insurance on the Internet or visit a specialist home insurance provider for an array of good deals at the current time.