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Home Buildings Insurance – Where Are the Risks to You?

Picture the scene – you have just opened your annual renewal documentation and the premium seems reasonable. What do you do? Some will hit the “Go Compare” websites and get cheaper premium quotations. Some cannot be bothered and simply file the paperwork (doing nothing is a great option as this usually means your policy will be automatically renewed).

What is wrong with this little scenario?

The answer is “nothing”, in many cases. However the right answer must be based on your own particular circumstances. I would argue that never has a time existed whereby are you more strongly recommended to STOP, THINK and REVIEW before you decide what to do.

Question ONE – Has the policy cover changed in any way OR does it include all that you need? Often the excess payment is incremental based on what is being claimed; Often the list of exclusions has been extended but you would need to very carefully read the small print to find such changes; often cover has been limited in some way. You need to make sure that you are getting  รับสร้างบ้าน value-for-money before you decide to renew.

Question TWO – Have you completed any works, improvements, alterations that either increases what needs to be covered or which might adversely affect the Buildings Insurance Company view of what risks they are taking in extending cover to you. Remember you are under a duty to inform Insurers if anything has changed or is unusual.

These two questions are fairly simple but do you know the real import of them? Do you know what might happen if you ignored the ground rules, buried your head in the sand, renewed blindly and then had to make a claim during the next year?

Firstly you have to understand what insurance is not. It is not a cover-all-get-out that absolves you from well maintaining your home. If you have something that you know is going to wear out after a finite period, you ignore it, it fails and causes house subsidence, are you covered? Probably not but this is a grey area. EG: If you have underground drains made from pitch-fibre your drains will fail very quickly now because we know they have not stood the test of time.

What would happen if you planted trees over your drains or too close to your home and in ten years time the tree roots cause damage that results in house subsidence – are you covered?

What happens if you completed an attic conversion, installed a Conservatory, replaced your old, single glazed windows with state-of-the-art double glazing and you fail to tell Insurers and then have a claim that includes these items? Are you covered bearing in mind your cover did not reflect the added cost of these items?

If your insurance level was correctly assessed many years ago and has been index-linked ever since and you make a claim and Insurers say you are under insured and will not pay out the full amount to reimburse you? Have you a case for complaint or not?

 

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