Getting household insurance is one of the most important decisions in life. Spending millions of pounds on a dream home made you happy. But it is vital to check the type of cover bought. Specific lifestyle choices determine the house type purchased and the associated risks.
Experts and agents concur on some common household insurance myths:
1. Accidental Damage: Your house may be insured, but its contents are not. Most expensive equipment is not covered by a standard policy. Be sure to read the fine print. In most cases, you have to pay for the additional cover.
2. Extended Leave of Absence: Staying in Ibiza for a year can work wonders for your life, but the insurance company may not agree. It varies with the household insurance. Some policies let you stay away only for a month. In others, it is more.
3. Claims and Premiums: It is assumed that filing a claim can lead to higher premiums. In most cases, household insurance companies do look at your past history. But this is not always binding. If you file claims intermittently, then, it may not dramatically increase your home premium. For minor damages, do the repairs yourself. It can work out better than asking the insurance firm to pay up.
4. Individual Item Limits: Very expensive individual items cannot be covered by the home contents insurance policy. Mostly, a limit on single items is pegged at £1500. Individual policies may differ. Consider getting expensive items insured separately.
5. Full market values: Do not insure for full market values. If you live in a period property in Knightsbridge, then you can go for comprehensive household insurance. Most homeowners can opt for building insurance.
6. Skimpy Cover: Many people opt for less cover to save cash. Consider the lifetime value of your house and associated sentiments. Many insurance companies offer discounts when making the sales pitch. Find the best deal and opt for better household insurance.
7. Maintenance Problems: Taking care of your house is an individual responsibility. Lack of maintenance and normal wear and tear are not insured. There can be a lot of problems with decay, etc. Household insurance cannot cover this. Do the repair work yourself.
8. Medical cover: Find the household insurance limits for each person. Assumptions can lead you to a dead-end. Check limits in your policy, or ask the agent to clarify.
9. Flood insurance: Even if you do not live in a disaster zone, ensure that you are covered for floods. Protect your parents by obtaining a flood insurance policy.