Home insurance- Mini Guide

Home insurance mini-guide:

Your home contains all the most treasured inexpensive and expensive items you possess. If you own it, it is also the likely to be your largest financial commitment.

It makes sense to consider the risks you face and act to protect it from the unknown; especially when money is tight, rebuilding your house or having to replace all your possessions isn’t cheap!

Feel free to give our customer services line a call for help; 0845 355 1150

Or

Go online at www.insurance4everyone.co.uk to get a quote!

We stock our preferred home insurance product online, but we can also provide you with a number of alternative insurers to compare if you drop us a line! 

There are effectively two types of cover for you, but these can also be combined into one policy which can save you money and you can add extensions such as accidental damage or All Risks:

Buildings insurance guide

Contents insurance guide

What is meant by Buildings?

It is usually:  The home, patios, drives, footpaths, walls, fences, gates, hedges, fixed tanks providing fuel, ornamental ponds/fountains together with fixtures, fittings and decorations (what a mouthful).

All of the above will be at the address shown in the schedule.

What is meant by contents?

It is usually:  Household items and personal belongings that you own or are legally responsible for.

How much should you insure for?

Be aware that it’s your responsibility to make sure the amount you insure represents the full value of your property. Although this can take a little time, it’s important you get on top of it!

This is just a guide – if you buy a home insurance policy your exact coverage could be slightly different, so please take care to check it thoroughly.

Buildings insurance guide

Predominantly a product for homeowners it is often a condition of having a mortgage. You don’t have to have your buildings insurance with your mortgage provider, you can shop around!

If you are leaseholder and live in a flat complex, the owner of the freehold may have arranged a block policy (to which your service charge contributes) so it is prudent to check whether this applies to you before you seek cover.

What do you need to consider?

Buildings insurance covers the building and generally permanent fittings that you would leave behind were you to move house.  It is usually extended to include outside structures on your property such as garages and outbuildings and garden fixtures such as walls and fences as well, but this varies dependent on insurers.

The policy will pay for occasions where the property has been damaged by catastrophe or was destroyed. Standard cover pays out for ‘perils’ such as Fire, floods, lightning or subsidence and usually extends to include property owners liability.

Flood is a particular risk in modern times, you can find out more information about the risks you face and warnings you can receive on the environment agency website

Sums insured for Buildings cover are usually calculated based on the rebuild value of your home; there are some online tools you can use to ensure you get the right level of cover. Other rating factors include the number of bedrooms and postcode you live in, depending on the insurers criteria. 

At insurance4everyone, we have a policy where you do not need to know the rebuild amount – this is called a bedroom rated policy and provides cover up to £400,000 for buildings.

Buildings insurance tips:

• -   Always read the product wording before you make a buying decision – ask your supplier for a copy of a Summary of Cover, this will tell you the most important information in a short format, including any significant limitations or exclusions to coverage.
  
• -   You are free to buy buildings insurance from whomever you wish so long as they are authorised by the Financial Services Authority – you can check to see if your firm is authorised.
  
• -   Buildings insurance covers you for “catastrophic”  scenarios and standard risks
  
• -   You may save money by purchasing both buildings and contents insurance combined
  
• -   Increasing your excess (the amount you contribute to a future claim) can reduce your initial premium, but will increase your costs should you claim; don’t opt for an excess you could not afford to pay
  
• -   Do not buy on price alone, always read the conditions of cover you are agreeing to
  
• -   Check the financial security of the company insuring you; insurers that have better financial strength can have more expensive products.
  
• -   If you are a leaseholder in a complex with more than home, check to see if you are already contributing to a block policy.
  
• -   Accidental Damage - you can see usually extends your standard perils to include accidental damage to the building (example putting your foot through the ceiling when you are tidying the loft!).  An extra premium usually applies.
  

 

Contents insurance guide

This is a product for both homeowners and those that rent a property.

What do you need to consider?

Contents insurance covers your possessions that you would take with you were you to move house, such as furniture, electrical goods, clothes and valuables.

Insurers will usually cover you for the ‘perils’ of fire and theft as standard; you may also opt to cover accidental damage in and perhaps even away from the home.

When applying for a contents insurance quotation you are asked to nominate the level of cover you require, some insurers set an automatic maximum as standard.

It is important that you take some time to calculate the value of contents in each room of your house (don’t forget your carpet or curtains!) as this total sum will indicate how much cover you need. Your calculation should be on the basis of ‘new for old’ except for clothing.

It is sensible to keep the receipts for any items you buy that you might want to claim for in the event of any claim and keep the record upstairs in a safe place such as a fire proof box/cabinet.  These not only help you tot up the value of your contents, but also act as irrefutable proof of ownership in the event of a claim.

Should you make a claim; most insurers operate a “new for old” policy, meaning items would be replaced new except for clothing.

With this product, the security of your home has a lot of impact on your premium. You could save money if you have a burglar alarm, multiple deadlocks, additional window locks or are a member of the local neighbourhood watch.  Sometimes if the sum insured is higher than average the insurer will insist on an alarm.

Contents insurance tips:

• -    Always read the product wording before you make a buying decision – ask your supplier for a copy of a Summary of Cover, this will tell you the most important information in a short format, including any significant limitations or exclusions to coverage.
  
• -    Contents insurance is voluntary rather than compulsory
  
• -   Tot up, room by room, the value of all your removable possessions (including white goods and upholstery) to ensure you get the right level of cover.
  
• -   Consider whether you need accidental damage or cover away from the home.
  
• -   You may save money by purchasing both buildings and contents insurance combined.
  
• -    Increasing your excess (the amount you contribute to a future claim) can reduce your initial premium but will increase your costs should you claim; don’t opt for an excess you could not afford to pay.
  
• -   Get organised; try to keep receipts and a log of the key items you have purchased.
  
• -   Check the financial security of the company insuring you; insurers that have better financial strength can have more expensive products.
  
• -   Cover for contents (possessions/plants) in the garden, garage or outbuildings varies from insurer to insurer.
  

Add- on cover & extras;

All Risks:

You can extend a standard contents insurance policy and provide accidental damage or loss cover for valuables or personal possessions anywhere in the UK and sometimes worldwide.  This additional cover attracts an extra premium, again check your policy for wording.

If you have items worth more than £1,000, always make sure you tell your insurers and keep the receipt as proof of purchase and value. It is also a good idea to take and keep safe photos of the item as this will help the claim process if you need to claim. Make sure you also have a photo of you wearing any valuable ring, watch, etc, as this again helps prove that you had the item!

Pedal Cycles – in Contents insurance

Loss of or damage up to the sum insured.  Cover varies depending on the insurer – check your policy.

Credit Cards/Cash

Personal money, credit, debit and cheque guarantee cards all held for social or domestic purposes are sometimes insured for loss as a result of misuse by any unauthorised person (or people) following the theft or loss of the card.

There is usually a maximum sum insured and you must report a loss immediately to the police.  Each policy is different – check yours. Cash is usually covered up to £500 in the home but you need to check your policy for cover and wordings.

Contents of Freezer

Included in the Contents insurance product; Loss of or damage to food stored in any domestic freezer in the home caused by a rise or fall in the temperature (say electricity failure) but each policy has a different wording and sum insured.  Check yours.

Public Liability

Your legal liability as owner of buildings is included in that section.  Occupiers, personal and employers liability is your legal liability to pay damages and often claimant’s costs for accidental bodily injury or illness or accidental loss of or damage to property but each policy may have a different wording and sum insured.

ID Theft

Some policies provide cover for ID theft – check your policy wording. We can also provide a stand alone ID Theft product for only £21.

Legal Expenses

Some policies include family legal protection (or legal expenses) up to maximum limits and for pre-determined legal matters or proceedings.  Check your policy wording.

Index Linking

The sum insured you have chosen is usually index-linked and will be updated at each renewal date.

Exclusions

All policies have exclusions; these are when a claim will not be met.  Check your policy carefully to manage your expectations.  They will usually be highlighted in a Policy Summary (sometimes called a “Keyfacts document”) make sure you get one and read it carefully.

Can you add other cover?

Some insurers allow you to add caravans, sports equipment, personal accident, redundancy or boats to your policy.  It is worth shopping around as sometimes the cost is more than you might pay for a separate policy.

Insurance Fraud- where do you stand?

Despite the clear and universal disadvantages that insurance fraud brings, it is now more of an issue than ever. Is it just due to the economic downtime and the unpopularity of insurance or do we need to establish a new social conscience for this issue?

The plight, if allegedly confessed guilt can be called that, of Brazilgate pair; Shanti Andrews and Rebecca Turner, has brought forth some interesting perspectives on insurance fraud. In this instance, the pair were accused and confessed to over egging their losses for a travel insurance claim, which didn’t please the local police when it is alleged some of the property was found in their possession.

Reaction and coverage in the UK has seemingly been strong, with a relation arguing that the measures taken to prosecute the pair were disproportionate to the offense. 

Whilst we could never underestimate the harsh conditions of a Brazilian jail for two young women and the trauma it would cause, it is worth relating this unfortunate case study to the attitude that exists toward insurance fraud in the UK. 

The plain fact is that fraud and dishonesty is culturally criminal in our country. 

Do Britons care about insurance fraud?

A recent article in ‘The Journal’; the Chartered institute of Insurances’ member publication,  takes the stance that most folk in the UK might consider 'congratulating' anyone that managed to eek a little more claim out of their loss. Whether they are talking about it over a three course meal or some fast food. 

The UK public are notoriously quick to support measures against those that break rules; we are after all, a queuing nation. When one queues; one expects others to do so and the same attitude naturally applies to law abidance, lest a grumble be generated. Rightfully so (he cheers whilst sipping some tea).

Unfortunately and much to our detriment; insurance seems to have slipped through the social norms net when it comes to the 'honesty expectation'.

It isn’t “them and us” its “you and me”!

It is this humble insurance retailers opinion that there might be a little bit of “them and us” involved. Insurance is intangible, we constantly write about the need for consumer perspective to be focused upon the investment rather than cost of insurance. As cost alone could damage a consumer's perceived 'value' of insurance.  

Consumers might see insurers as companies that take money for nothing most of the time. Ironically the opposite is true; on the whole, key products such as Car insurance are known to have poor claims results for a large number of providers.

Not claiming on a policy is actually a good thing, when you think about it. Would you feel worse if you hadn’t got home insurance and your house had burned to the foundations?

It is still explicable that an “it won’t happen to me” consumer mindset might overlook fraudulent claims, if not wholly logical.

The severity of fraud in terms of insurance claims, just does not stick for most. For many it’s not that big of a deal; of 3000 up to 44% cited that they viewed inflated claims as acceptable/borderline in a recent ABI (Association of British Insurers) survey.

The worrying thing about this attitude is that it completely goes against the very reason for insurance, that lack of certainty about of future outcomes and the risks we face.

Insurance is based on the concept of the common pool; those variables that affect one, affect all. It is estimate that insurance fraud adds £44 pounds to every general insurance policy sold+. Insurers base consumer premium on the total amount of claims (amongst other things) they expect to pay. 

The more falsely inflated the claims: the more premium all consumers pay.

Insurance needs to get serious!

Perhaps some of the problem is the messages that our peers and major insurance brands send out. It is our passionate belief that insurance is a complicated product that requires straightforward but serious methods of retail. 

It seems that too many products are sold by advertisements with quirky brand ambassadors or messages purely based on price. This is not an approach that creates respectability, there is of course that old adage that; “we treat others as we wish to be treated”.

If you put a cartoon character on TV and talk about money alone, then surely a consumer is less likely to take your offering seriously and focus wholly on the prices they pay. Price is of course very important, but it pales compared to the importance of consumer knowledge. 

Would we ever see a major bank marketing 0% credit cards on TV with a man dressed in an 18th century soldiers uniform? 

Insurance needs a better ‘rep’

Banking is just as complex for consumers, yet none of the major high street banks sell by “dumbing down”.  Only one had a memorable or quirky brand ambassador and that person was a former branch manager.

If you have been reading the papers recently, a couple were given a very serious suspended sentence for taking over £60,000 out of a faulty cash machine. The penalty was high and publicised, as Banks send out the message that they punish accordingly. Relate this to insurance fraud...

Really, it is insurance brands that have a lot of work to do. We need to help consumers understand how our products work, educate children from middle school level to engage and even join the sector. Perhaps then the attitude toward this sector and those that jeopardise the community of risk sharing, might be viewed in a different light.

Of course we have our concerns for the welfare of two British citizens in Brazil, foreign laws can be harsh.

We must side with right however, it is not legal to undertake insurance fraud in the UK either, would you turn a blind eye?

James*

Marketing & Branding

+Source: Kevin Pratt: The Journal, Chartered Institute of Insurance August/September 2009

Unemployment insurance- thinking on the turn

Eurozone economic recovery:

Today sees news that the French and German economies are officially out of recession. Whist we cannot be sure that a “double dip” won’t happen; it does bring some interesting insurance strategy to the fore.

JFK once said that; “the time to mend the roof was when the sun was shining”. Well, the same applies for buying unemployment insurance. When the bounce occurs in the UK start doing your research and consider buying an unemployment insurance policy.  If you are one of the fortunate to have been unaffected by it and did not already have unemployment insurance; this is the time.

When is it best to wait?

With all unemployment insurance products, a standard  “time” waiting period is applied to the policy, before it is active and there for you to claim on if needed. This ensures that insurers know they aren’t effectively taking on a certain claim and keeps things fair for both parties. 

Remember, insurance is a risk and in effect requires uncertain outcomes for both parties to work properly for everyone in the "pool" of buyers. You wouldn't want to buy a product where you knew prices were higher because lots of people knew they would need to claim straight away. That might seem a bit of fiddle as it is supposed to support those that are "unsure" and want peace of mind.  

The trouble is, time means waiting. We know this can be frustrating, it is however unavoidable. Logic suggests therefore that the best time to sit out a tedious waiting period is when you are sleeping deeply and living sweetly.

During boom time you can quite easily see out a waiting period, knowing that your job security is better than in a recession. Now you may be thinking; “I don’t need unemployment insurance if my job is safe”, but we know how quickly things can change in this global economy.

Plus, some of our unemployment products can include accident and sickness, so really- although the unemployment element has fallen a little in its urgency, you can make sure you are covered for other eventualities.

Unemployment insurance - think like Warren Buffett!

Despite some of our governing classes’ claims, our economy is still cyclical, meaning that this won’t be the last recession. There might be another mini recession in a couple of years or your business sector might get “out sourced” to cut costs. A competitor might sweep in and steal your companies market share.

There are numerous reasons why unemployment insurance is valid in the “good times”. Good times, turn bad. You cannot be sure when that will happen, so unless you have a fool proof recession predictor or job security meter, get prepared now.

'The famous sage of Omaha, Warren Buffett responded once to a question on his genius ability to trade stocks at a profit. He commented that he generally “sold too early and brought too late”. There is a lesson here, although you might not need unemployment insurance right now, your strategy should be long term.'

Often the greatest players read the game by playing the odds, if you feel safe and the sun is shining for you, get thinking about your preparations for the rain. Start fixing the roof…

For more information on our fantastic services for unemployment insurance,  head online to http://www.insurance4everyone.co.uk/content/products/income

OR call our team on:  0845 355 1150.

 

Thanks!

James*

Marketing & Branding

Insurance website review..

Friendly insurance website seeks reviews from members of the public! Have you looked at our site? Have you tested our rapido Home insurance quote engine? Have you stared blankly at our FAQ's page?

You see, some companies pay people or even staff to chuck reviews out left, right and centre: we don't ever do that. If its not genuine customer feedback, we don't want it. There is after all, a "right" way to do things isn't there?

Please review us:

We have that annoying virtue to constantly want to improve, even if some improvements seem far fetched or way out there in the future. Knowledge is brand building cement to the bricks of our enterprise. 

If you have, or even if you fancy a random challenge- write a review about it on one of the following sites or forums:

- Moneysavingexpert

-Ciao

-Kelkoo

-Dooyoo.co.uk

-Yahoo Money

-Moneysupermarket

Yes thats right, we actually want you to go forth onto forums, comparison sites like ciao (by bing) and review our site. The more feedback we get out the there on the web, the more we can improve PLUS other lovely insurance shoppers get to hear about us and add their opinions.

Do you think something we don't think- or are we being paranoid?

We are running with some upgrades and new advertisements in the next quarter that will really push home what we are all about. Whilst we are doing this, it never hurts to have the odd compliment about whats good, plus the odd constructive comment about what's not! 

It might be that the areas we know we need to improve are the very ones you would pick out, or you might highlight something that we haven't thought of!

Have a great weekend, one hopes that the next time one blogs- the ashes is far from a draw....

Geoff*

Marketing & Branding

Home insurance & Moving House

Yes it is a recession and apparently, no one is moving home... Well, never say never. This could all be set to change. So in a wonderfully pre-emptive manner, we wanted to cover this tricky little area and talk about the effect it has on home insurance coverage. 

Moving house is one of those areas of Home insurance where knowledge of the average consumer might need bolstering. When you realise the risks presented, you might think; 

Hang on, what happens if our stuff gets into an accident, is broken or stolen in the move?

You would be totally correct and prudent to explore this eventuality as we all know how things can get buffeted and even “lost” in transit. Moving house is unfortunately, no exception. 

"Sadly its also one of the few occasions where your contents are exposed to third parties and forces outside of your control."

Above all, the stress and pressures that result from a house move should not be supplemented by insurance stress, but it is worth considering the 'insurance side' of things before you move and / or even contact a removals firm.

Am I already covered?

The first question you need to satisfy yourself with is: “Am I already covered under an existing policy?” If the answer is no, you need to address it; either with your current insurer, or by purchasing short term cover for the removal.

A lot of removals firms are very professional but none of them can 100% guarantee that things won’t go wrong. Some might even offer you cover for the removal process, charging you based on the price of your move.

It is critical when considering the insurances that you read the wordings for both your existing policy and those that you might purchase from a removal firm. The key clauses you should focus upon surround the issue of “who packed the items”.

Think about the packing!

Some removal firm’s insurance cover might only be valid if you both agreed that they would professionally pack the items. If you feel happy enough to pack your own property, then this clause would effectively scupper any coverage which presented this kind of clause.

This would effectively make it a waste of money. Bear in mind, that unless your removal firm is “an appointed representative” or “authorised by the FSA” they would be on thin ice if they were advising you.

Always seek insurance advice from an authorised or regulated entity, its safer all round. There are professionals for a reason: it’s a complicated product!

Engage with your home insurance provider

A lot of insurance policies will cover your property when it is being moved already, it is still always best to tell them about your changes in circumstances and ask the question. If they don’t cover it as standard, ask if they can include it for your schedule move date.

Check your policy until satisfied that you are meeting the necessary clauses to maintain your side of the insurance contract.

Be particularly demanding with your removal firm about the security of your goods and each property. They are not to leave your goods unattended or in plain view, this could jeopardise any cover you have as well.

Moving house, could save you money?

There are a few ways moving house might save you money, with specific regard to your home insurance. You could reduce the amount of contents you have, reduce clutter which reduces the risk of accidents or breakages plus it cleans your house up.

Your new neighbourhood might also be safer or your house cheaper to insure (especially if you are downsizing). Check out http://www.upmystreet.com/  site for details. Its up to you if you have the time, but checking other insurance companies prices for your new house could show you cost savings.

You may not need to necessarily change insurer, but knowledge is power, as a consumer you should demand an honest service. If they cannot match the other prices, find out why. Don’t forget, you pay for what you get; there are generally reasons when something is too cheap. They are unlikely to volunteer a reduction in premium without you asking.

When moving house insurance is still your ally; hopefully you won’t need it, but it would be far more stressful to find out you weren’t covered and something did go wrong.

James*

Marketing & Branding