Home insurance can give you confidence that if your property or possessions are damaged or stolen, you won’t be left counting the cost. However, unless you’re careful when it comes to home cover, you could make a whole range of mistakes. Here, we take a look at three common faux pas involving this form of financial protection.
Not shopping around
Many of us lead busy lives these days and so it’s no surprise that people often rush the process of choosing their home insurance. However, this can be a costly mistake. By opting for the first deal you see or choosing to renew with your existing cover provider without reviewing your options, you could end up spending much more than you need to. Instead, set aside a little time to shop around online. One of the simplest ways to search for cover is to use a specialist broker website. For example, if you look for home insurance from Chill, the broker will compare deals from a variety of cover providers to help you find the most suitable insurance. By comparing and contrasting different policies in this way, you’ll get a clearer idea of what’s available and what represents good value for money.
Miscalculating how much cover you need
Lots of insurance customers also over or undervalue their possessions. Miscalculating how much cover you need could lead to you either being inadequately insured or shelling out more than you need to in premiums. So, make sure you add up the value of your possessions carefully and check policy limits (and single item limits) when you’re selecting an insurance product.
Also, if you’re getting buildings insurance, you’ll need to find out the rebuilding cost of your home by checking the valuation or survey report that you got when you bought it. Bear in mind that the market value for your property bears little relation to the sum you’d need to pay to rebuild it.
Failing to read the terms and conditions
It can be tempting to skip the small print when you’re getting an insurance policy, but it’s vital that you get to grips with all the terms and conditions. For example, you’ll need to understand exactly what’s covered by your policy and what’s excluded – otherwise you could be in for a nasty surprise if you need to make a claim. You might need to take out extra cover for outbuildings like sheds, or for possessions you want to take outside of your home, such as laptops or bikes. You might also be required to have certain security measures in place to avoid invalidating your policy. For instance, you may have to have particular locks fitted to external doors.
By being aware of these mistakes and taking steps to avoid them, you can help ensure you get the perfect policy for you – and you can have confidence that if you have to make a claim, you’ll receive the money you need.