Misconceptions about Insurance Claims

1. Amount of buildings cover 

 

The amount of buildings cover you need is based on the cost of rebuilding the property from scratch, rather than the sale value. This cost can be lower because you don’t account for the value of the land it stands on. You can usually find the rebuild cost in the Homebuyer’s Report from when you purchased the property. Alternatively you can use the ABI Calculator. 

 

2. A claim doesn’t cost you anything 

 

When you take out an insurance policy, you will usually see the term ‘excess’ on the form. This is how much you’ll pay towards a claim before your insurer completes the claim. There are two types of excess: 

 

Compulsory is a fixed amount set by your insurer. 

Voluntary is the amount you agree to contribute yourself. The higher it is, the lower your premium is likely to be. 

Our advisors are always clear about how much excess you’d be required to pay. 

 

3. Claiming for accidental damage on contents insurance 

 

If you burn the carpet with an iron or put your foot through the ceiling while doing DIY, you might assume you can claim for any of the damage on your home insurance. 

 

While many policies provide a certain level of cover against accidental damage as standard, they will usually only cover things like breakages to glass or fixed sanitary fixtures and home entertainment. For peace-of-mind, you can pay a bit extra to extend the accidental damage cover, although you may need cover under both buildings and contents policies. 

 

4. Items outside of the home 

 

You would be wise to protect items such as laptops, musical instruments and sports equipment for when you’re out and about, as home contents insurance does not automatically cover your belongings against loss or damage outside the home. You may need to take out personal possessions cover as an optional extra. 

 

5. Property with history of flooding 

 

A joint scheme by the Government and the insurance industry called Flood Re is helping to reduce premiums for many people living in high risk areas. 

 

The scheme was created to benefit households that had previously struggled to get insurance against flooding and to make this cover more affordable. 

 

If you have any questions about you home of motor insurance, please don't hesitate to get in touch with our team on 01482 707800 or email info@hedoninsurance.co.uk.