How is the “sum insured” method of deciding the level of coverage different from the “per room” method?
Coverage levels can be selected in different ways. With sum insured coverage, you must calculate the cost to replace your possessions and the insurer calculates your premium based on this information. Coverage rated by bedroom is simpler as it is based on the number of bedrooms in your home. We recommend that you obtain quotes using each valuation method before deciding which one is right for you.
Should you buy from a broker or sign up directly?
Internet comparison sites are a good place to get the most competitive rates, as you can see the rates offered by both brokers and insurers. Using a broker may seem like the best option, but you want to make sure they search the entire market, as they have a reputation for only looking at rates from a small group of insurers. This will limit your potential savings.
How does the insurer define a bedroom?
Originally, your house would have been designed to have a certain number of rooms. Although one room can now be used as a study, it is the original number of rooms that the insurer is after. They may also want to know if you have converted any other rooms into a bedroom.
How do you rate older items, like out-of-print books?
The general rule of thumb is to insure your possessions for the price it would cost to replace them today. Try to be precise, as falling into the trap of being over- or underinsured can lead to problems if you have to file a claim in the future. If the item is valuable, it’s worth getting an expert appraisal from an auction house, antique dealer, or bookstore. You can get further advice from your insurer or the Association of British Insurers.
Do you have enough accidental damage coverage?
Some accidental damage coverages are included in standard contents policies and would typically include things such as stereo equipment. However, furniture and property may not be covered. You will be able to extend your cover to include these types of items for an additional £20 to £100. Less active households may decide that the additional premium is not worth paying.
Do you have enough personal property coverage?
You may also consider expanding your coverage for personal effects. This insurance, also known as comprehensive coverage, protects you from the loss of property when you are away from home. A digital camera or a handbag are typical examples. The insurer may place restrictions on what items are covered, so it is advisable to obtain a list of insured items from the Company.
What is “indemnity” and “new for old” coverage?
If your belongings are destroyed or stolen, your insurer will either pay to replace them with new items or reimburse you for the full cost of repairing them. However, indemnity policies deduct an amount to cover wear and tear and depreciation. Although the premium may be cheaper for an indemnity policy, we do not recommend them, as you would likely lose a lot of money if you made a large claim.
I have my own locked room in a shared flat, but I can’t find anyone to cover my possessions. What should I do?
It’s not surprising that you’re having trouble finding an insurer, as this type of coverage carries a much higher risk. However, there are companies that do specialize in coverage of this nature. Your friendly insurance agent will find a suitable policy or you may wish to consider taking out a joint policy with the other occupants of the property.
Will I be charged extra for paying in installments?
Most charge extra. It just depends on who you’re insured with, so shop around.
My property is at risk of flooding. Can I get insurance?
The insurers have an agreement with the government that they will continue to cover their current clients, who live in an area at high risk of flooding, as long as the government allocates enough money to improve and maintain flood defences.