Guessing the answer to questions when applying for home insurance is easily done, but it could end up costing you dearly.
For example, if you are getting a quote for home insurance, you’re likely to guess the total cost to replace all of your homes contents and make a guess at say £15,000.
But if you end up having to make a claim and the insurer values your contents at £20,000, a quarter more, then the pay out could actually be 25% less than the claim. This is called the ‘average clause’
Here are the main areas when it comes to home and car cover where guessing simply isn’t good enough.
Underestimating the value of contents
As explained above, underestimating the amount it would cost to replace your contents can be costly. Don’t forget to include items like carpets and curtain, which you might not immediately think of.
As with your contents, guessing your rebuild cost incorrectly could cause unnecessary trouble for you in the event of a claim. Whilst many policies automatically provide up to a million pounds worth of building cover some will ask you for an exact figure. You will need to include any outbuildings you have such as garages or summer houses.
Home Insurance quotations will always ask If you property is in an area which is at risk of flooding. If you say that it isn’t and your house subsequently floods, you may find it difficult to make a successful claim for damage. Checking the ‘Long Term Flood Risk’ section of the government website, gov.uk will give you more information.
Locks on Windows and Doors
Make sure you declare your homes security accurately. If you’ve told your insurer your property has high quality British standard locks on all doors and windows but it doesn’t, if broken into any claim you make is likely to be rejected.
Age of Property
You can find out the age of your home by looking at the title deeds. If unavailable, have a word with neighbours to see if they know. You don’t have be spot on and its usually ok to be out by a decade but if you’ve declared your house was built in 1960 for example but it was actually 1900, your insurer might be inclined to decline a claim.
If you’ve declared you have an alarm, Insurers expect you to have it switched on whenever you are not home. If you’ve said your home has a working alarm and you don’t actually use it, this could penalise you if that is the case when making a claim.