cheap-insurance-deal.co.uk
Navigation
For many years in the UK, motor insurance has been a competitive marketplace. Consumers have been used to shooping around at renewal time with a host of direct companies available. The internet has further fuelled this change allowing more people to access better information when their policy is due for renewal.
Home insurance has until recently been a much more stable financial product. The relative stability of pricing, compared to a very fluctual motor isnurance market, has meant that consumers have stuck with renewals because the pricing has remained static.
However the internet is also encouraging people to shop around for their home insurance too. The good news for the household insurance consumer is that there are savings to be made on your buildings and contents policies from simply shopping around.
Most people while looking for a cheap insurance deal on their policy also consider the exact cover that they need. If you reflect that you need to be able to replace all of your contents at todays shop values, you might find that you need more cover than you originally thought.
Cutting costs by cutting corners can have a serious effect on a home insurance claim. If you are deemed to be under-insured by your home isnurance company, they may apply the condition of average.
This works on the basis that if you did not insure for the full value of your belongings, the insurer will pay out only to the sum that you did insure and they will deduct a further payment from the payout equal to the percentage you under-insured.
This might be clearer in an example - Imagine you own £50,000 of contents in your home but choose to insure for just £25,000 because you thought that this was the maximum a thief could get away with. If your home suffered a catastophic fire and you lost all of your possessions then your insurer could apply the condition of average.
Under this right they can pay out only 50% of the sum insured because that is the value that you under-insured by. In this case they could pay just £12,500 even though you lost £50,000 of your contents.
Insurance comapnies will always take this on a case by case basis but the only way to protect your home contents is to insure properly to the full value.
Leave a comment | View Comments
Insurance Headlines
Ping An sees no impact on China from Pru-AIG deal - Reuters
 Telegraph.co.uk | Ping An sees no impact on China from Pru-AIG deal Reuters BEIJING, March 5 (Reuters) - Ping An Insurance, China's No. 2 insurer, said on Friday it was not concerned about a plan by Britain's ... Tata Group Studying insurance partner AIG's Asia Ops to Prudential Prudential buys AIA Prudential bankers gain extra support for record $21bn rights issue |
Cost-cut drive sees Aviva hit better profits - Yorkshire Post
 The Guardian | Cost-cut drive sees Aviva hit better profits Yorkshire Post The group's One Aviva strategy saw the axing of some operational centres for the general insurance division, the outsourcing of swathes of IT systems and ... Aviva boss says it's Europe, not Asia, that's the most attractive insurance market Aviva blames weaker economy, weather for 25% fall in profits Aviva insurance reports return to profit |
Scrap VAT exemptions to rescue economy, says think tank - Telegraph.co.uk
 MSN Money UK | Scrap VAT exemptions to rescue economy, says think tank Telegraph.co.uk "Raising taxes on jobs, through higher National Insurance contributions, is astonishing given a rise in unemployment of 22pc in the last year. ... Calls to abolish VAT exemptions THREAT TO FOOD BILLS IN 'WIDEN VAT' BID |
Obama Reads Letter To Insurance Executives To Shame Them - Huffington Post (blog)
 Reuters | Obama Reads Letter To Insurance Executives To Shame Them Huffington Post (blog) President Obama walked in today on a closed-door meeting between Health and Human Services Secretary Kathleen Sebelius and top insurance industry executives ... Justify high rates, health secretary tells execs Obama Shares Letter from Struggling Health Insurance Customer Sebelius browbeats health insurance firms |
