I’ve referred recently to the issue of rebuild costs not necessarily dropping when it comes to calculating the premium for home insurance.
A couple of people have highlighted to me a slightly related issue that is a little more concerning.
When calculating renewal premiums costs, these people have seen that the insurance company has acutally increased the value of property and contents.
Yup – in a time of falling costs and prices, insurance companies are trying to get away with increasing the value of replacing homes and contents – in some cases by up to 16% and 7% respectively.
If you see this on your insurance quote, make sure you query it and get the numbers changed if possible.
A further issue highlighted by a reader when as follows:
Also and most worring, accidental damage to buildings and contents is “Not covered”
There is a policy excess which covers the small damamges.
I rang up about this.
The following examples were given.
Some body knocks over the TV.
Somebody leaves a cigarette burn on a sofa.
If the sofa catches fire and burns the house. The will pay for the house but not the sofa.
This looks like lawyers talk to sell a policy whcih could be worthless. I cannot see what would prevent a company from disputing any claim as accidental damage.
The reader is following up with the Financial Services Ombudsman.