Checking your home insurance cover

Home insurers generally have three broad categories of cover:

• High Net Worth insurance for larger properties and high value contents
• Standard policies which are suitable for many people
• Mid Net Worth policies that fall somewhere in the middle

However, there is an additional category of cover which people are increasingly crossing over to – policies which are focused on price and not cover. These policies are designed to compete on comparison sites by quoting very low premiums – and with low premiums normally comes limited cover.

Here are some typical restrictions to look out for:

• A wear and tear deduction on all of your contents
• Very limited alternative accommodation – this is an amount payable by an insurer to cover the cost of renting a temporary home for you and your family (and pets) following a claim that leaves your home uninhabitable. This can be as low as £20,000.
• Limited cover for finding a leak and sometimes there is no cover for a leak in your garden or driveway
• No cover for storm damage to flat roofs
• No cover for contents in sheds or garages

As these aren’t shown as restrictions on the schedule, and because they are in the policy wording, you’d be forgiven for missing them. But we won’t miss them. We’ll review your current cover with you and help you understand what it is you’re buying.

Sometimes there’s an option to add cover, but this can end up increasing the premium back to that of a standard policy. For example, accidental damage, legal expenses, home emergency or a lower excess.

Quite often though, these policies give a limited level of cover that can’t be improved upon without switching policies.

If you think you’ve crossed over to a home insurance policy with limited cover and would like some advice, then call Howden Private Client on 020 8256 4901 or email privateclients@howdeninsurance.co.uk