Watch out when renewing home insurance

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.

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2 Responses to Watch out when renewing home insurance

  1. Maura May 20, 2009 at 08:30 #

    A very curious thing –
    When renewing insurance with AA Insurances, (for house) I discovered that they only offer policies from Royal & Sun Alliance. No matter how many people I get to call them for a quote, that is the only company they offer. I suggested to them that they were a ‘tied agent’ and they denied it totally. In my opinion, they were able to deny it on the back of the fact that they offer other quotes for motor insurance, making them economical with the truth. So when you give your business to a broker and they send you a renewal notice saying they have obtained the best quote for you, I say, do not accept that, ring a few numbers yourself and you will be surprised. When you obtain a lower quote, go back to your broker, they will then match your new quote if you cannot be bothered to fill out the proposal again. AA told me that they had a special deal with Royal & Sun Alliance, so in my humble opinion, my understanding of this is that, RSA give them a fee for all business that AA put their way and on the other side, we pay AA a fee c.€40 for getting us the ‘best’ deal.
    Caveat Emptor..

  2. Anna Long June 17, 2009 at 23:46 #

    Incorrect,AA deal with two home underwriters

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