Having home insurance doesn’t necessarily mean you’re covered for all situations. Unfortunately some people learn the hard way that just because they’re insured doesn’t mean they’re covered for all scenarios.
Specific Items
For example, incredibly Tamara Ecclestone (The F1 Heiress) was unable to recoup any of the £25million lost in Britain’s biggest burglary due to a insurance blunder.The family are reported to not have been able to claim any money back for the stolen goods because the insurance policy contained an exemption clause for watches and jewellery that had previously gone unnoticed.
Did you know that home insurers are now accepting as few as one in three claims to get properties fixed after fires, flooding and other issues.
Many claims are rejected because of excluded terms and conditions. For example Tamara Ecclestone’s claim was reportedly only settled for £45,000 to cover damage to the property. Watches and jewellery are high value items which exceed the maximum value of individual items covered by the policy. No one noticed the small print that excluded her high value items so the majority of the claim was rejected!
Another common issue for home insurance is damage caused by pets, for example a cat destroying a sofa or a dog chewing up the carpet. Sometimes this additional coverage can be added.
Weather/Wear and Tear
Storm damage is one of the most likely reasons for a claim to be rejected. Insurers definition of a storm may differ from what your definition of a storm may be. Quite often insurers will classify a storm as 55mph winds, most damage occurs with lower wind speeds which leads to a lot of claims being rejected.
Homeowners need to keep their property well maintained for their insurance to be value and natural wear and tear is not included. Roof damage will only be covered if the roof is relatively new or if it has been checked and maintained within a stated time period. For example if your ceiling comes down due to water damage from a leaking roof the chances are your claim will not be paid out if it is deemed the roof has not been well maintained.
Underinsurance
Another potential problem is being underinsured for the value of the property and it’s contents. This can sometimes lead to the insurance provider agreeing to pay out some of the amount claimed under what is described as the “average” clause. For example if the sum insured is 35 percent under the correct value then there would be a 35 percent reduction in the pay out provided. Additionally a lower pay out may be provided if the insurer believes the claim has been made at an unrealistic value.
Providing wrong information to your insurance provider can also see a claim rejected. Anything from type of locks on doors to what proportion of the roof is flat can result in your claim being rejected.
Time of reporting a claim
It is important when making a claim that you do not delay reporting it. Some insurers may give a grace period of a certain amount of days so it is always best to check the terms and conditions on your policy.
Social Media
One final point to remember…if you’re going away don’t post this on social media! The Financial Ombudsman Service have said it’s possible that insurance cover could be affected if you announce your plans on social media. For example when celebrities do this, they are opening themselves up to criminals targeting them homes whilst they’re away.
If you’re unsure what you policy covers you for, contact us today to check you are adequately insured so you don’t have to learn the hard way too! We hope the above article helps you understand that you also have a level of responsibility to ensure your home is well maintained and cared for, check the small print and don’t just assume insurance will cover all situations.