home insurance
4th April 2011: Mike Powell, Insight Analyst, General Insurance
There are many changes you may wish to make to your home insurance contents policy to account for your newborn baby.
Firstly check your contents ‘sum insured’ limit to ensure you’re covered for all the nursery furniture and linen, sterilisation equipment and clothes as well as baby pushchairs as these can be expensive items to replace in the event a burglary for example.
A personal possessions feature under a home contents insurance policy provides cover for items that are taken outside of the home. The number of items that are needed with a new born baby can seem daunting - particularly when you decide go out for the day. Consider what you’ll need to take with you when you are visiting your friends or family or even just going to the baby clinic? You may have to take a pram or pushchair, some spare clothes, baby changing mats, bottles, dummies and nappies. Add up the total value of these items taken outside of the home on a regular basis and the costs could run into hundreds of pounds so it’s important to check if you’re covered for them in case they get lost or stolen.
Our research shows that:
- 18% of home contents policies provide cover for personal possessions as a standard benefit.
- 81% of home contents policies provide cover for personal possessions as an optional extension, subject to the payment of an additional premium.
- 1% of home contents policies do not provide personal possessions cover
Personal possessions limits - It is important to check any specific policy limits under personal possessions cover, particularly for items that are left in your car. Most comprehensive car insurance policies provide cover for ‘personal belongings’ that are kept in the car, but typically policy limits range from £100 - £200, which may not be enough for all your new baby’s things. The cover provided under personal possessions within a home contents policy is typically higher.
Our research shows that:
- 32% of home contents insurance policies provide cover for personal possessions in a car up to the limit that is selected by the policyholder so if this applies to you, check the limit allows for the additional items you’ll have in the car for your new baby.
- 12% of home contents insurance policies provide less than £1,000 for personal possessions kept in a car.
- 2% of home contents insurance policies do not provide any cover for personal possessions in a car.
It’s worth checking policy exclusions because typically items that are stolen are only covered if they are hidden from view within the vehicle in a locked boot or glove compartment.
As your baby gets older and start crawl and walk, the chances of accidents happening naturally rises. It is not uncommon for toddlers to accidently knock over an expensive ornament or vase, break the TV or spill drinks onto the carpet. These could then need replacing or cleaning which could be expensive. An accidental damage feature pays out if an item is damaged accidentally within your home or the home boundaries set by your insurer. The boundaries could for example include your garden.
Our research shows that:
- 17% of policies provide cover for accidental damage as a standard benefit.
- 3% of home contents policies do not provide accidental damage cover.
- 80% of policies provide cover for accidental damage as an optional extension, subject to the payment of an additional premium.
There are many policies in the market today which are available directly via your bank or buidling society or through the various comparison websites. Our Star Ratings can help narrow down selections. New mums may wish to think about 4 or 5 Star rated policies as these generally provide a higher level of features of benefits than 1 or 2 Star ones.
Michael Powell, Insight Analyst, General Insurance
It’s likely that this early snowy weather will have caught many of us off guard. Before it starts to get more severe, check your home insurance policy for ‘home emergency cover’. At least then you can be assured that in an emergency, help is available so things can get back to normal as quickly as possible.
Under home emergency, cover is provided towards any callout charges made and the cost of labour and materials used in a repair. Examples of emergencies that may be covered by this feature include the following:
- Blockages in the toilet waste pipes
- Plumbing problems related to leaking pipes, blocked drains, water tanks or leaking radiators
- Failure of the central heating system or boiler
- Failure of gas or electricity at your home
- Failure of the hot water system
Home emergency cover is only provided by 12.5% of policies as standard and just under half do not offer this feature at all. So if this area is important to you, check your policy details now. 38% of policies do have this as an optional feature so you may be able to add it on to your policy but this usually has an associated charge which varies from provider to provider.
It's also worth noting that the majority of policies (72%) include a 24 hour emergency helpline, to organise emergency repairs by a qualified tradesman, however you may be responsible for the costs involved for the repair. With the forecast showing more snow and thundery showers, it might be worth checking the details of this and putting it in a handy place.
Note: Our analysis was conducted using our Aequos Online product database which currently holds the details for 296 standard, UK home contents insurance policies.
Brian Brown, Head of Insight and Research
With over 500 home insurance policies in the market today, it can be difficult to determine where to start if you want to bring your premium down without compromising on the level of cover you have.
Our research encompasses 297 buildings insurance policies and 298 contents insurance policies across the whole market and we've identified several ways to get a discount without impacting on your actual cover.
- Go online - 19% of policies give a discount for online purchases via the insurer’s website
- Buy buildings and contents at the same time - 85% of policies give a discount if both buildings and contents insurance cover is purchased from the same insurer at the same time
- Tell the insurer if you haven't made any claims - 67% of policies offer a ‘no claims discount’ if you do not make a claim
- Fit an alarm - 69% of contents policies offer discounts for alarms fitted
- Fit smoke detectors - 22% of contents policies offer discounts for smoke detectors fitted
- Fit locks on your windows and doors - 64% of contents policies offer discounts for approved door and window locks
- Join your local Neighbourhood Watch scheme - 43% of contents policies offer discounts if you are a member of a Neighbourhood Watch programme. Contact your local council for more information.
- Pay by direct debit - 30% of providers do not charge extra for payments by monthly direct debit which would help spread the premium at no additional cost
If you're still unsure which policy best suits your needs, you can use our Star Ratings as a guide to help your choose the overall level of features and benefits offered. Policies offering a basic level of features and benefits would be rated as 1 Star and those with the most comprehensive range of benefits a 4 or a 5 Star. Alternatively, compare your policy features with another policy to see the difference in cover provided.
Mike Powell, Insight Analyst – General Insurance
In an online world, attitudes towards insurance have changed. Price comparison websites are now a dominant aspect in the way in which most people source insurance products. In fact, our own consumer research has shown that 85% of customers are now comfortable with researching and purchasing cover online.
As comparison websites grant users the ability to compare multiple products at the touch of a button, providers and their products are faced with an increasingly competitive market place. This is compounded by an overall increase in the number of products available.
Our report on home insurance makes a number of recommendations on how providers can employ a feature-led approach to product differentiation to catch the eye of potential customers, all of which are based on our expert analysis of whole-of-market data.
The report identifies key features that present development opportunities to providers that will help stand them apart from their competitors. It includes charts showing the percentage of products that incorporate each of these features and how these figures have changed over the last three years.
The report also provides detailed information on:
- Growth in standard and mid net worth markets since 2009
- Provider distribution trends in standard products
- The number of white-label products in the home insurance market, including entrants and exits from the market between 2009 and 2011
- Minimum policy excesses being charged within the standard products market, including historic data
27 January 2012
The dark nights cause plenty of homeowners concern, as 21% fear they are at the biggest risk of burglary during winter, according to Santander.
Their research shows that many people worry about their property and fear their home is more at threat during the dark winter months than at any other time throughout the year.
If you are concerned about protecting your home, one feature worth considering on your home insurance policy is home security, which will give you peace of mind during the dark winter nights.
Protecting your home from burglary
Home security is a service that is included as a part of home emergency cover, which means that your insurer will arrange for a certified contractor to come out and secure your property if it has broken or damaged windows and doors, which may compromise the security of your home.
Our data shows that only 13% of home buildings insurance policies provide home emergency cover as standard, while 46% offer this feature as an optional extra.
Out of those policies that can supply home emergency cover on your home insurance, 89% of them will ensure that an emergency contractor is sent to fix your windows and doors.
Protecting your home from theft can seem like a daunting task, but with the right level of cover on your home insurance, you can rest easy knowing that your home is protected during these dark nights.
If you are considering reviewing your home insurance policy, read our guide to home buildings insurance to see what other features you may want to review on your policy. Alternatively, if you are approaching the end of the term on your current home insurance policy, why not use our Star Ratings tool to compare your policy against others on the market, to ensure you get a product with the right level of cover for you.
6 January 2012
The first week back at work and school for many people was greeted by the havoc and chaos created by the recent gale force winds, which reached 100 mph in some parts of the country.
The Met Office has predicted there will be several more gale force storms affecting the UK over the next couple of days, while Direct Line has noticed a 300% increase in home claims in the past week.
According to their data nearly half of all the weather related home claims are for roof damage.
That is why it’s important to check whether you have the right level of cover on your home buildings insurance to ensure that your damaged roof gets repaired quickly.
We have highlighted a couple of features worth reviewing on your home buildings policy that may come in handy if you suffer roof damage.
Emergency roof repairs can be covered under home insurance
Home emergency cover is a feature that can be provided by an insurer who has an agreement with an approved contractor to carry out the emergency repair work.
Only 14% of home buildings insurance policies include this feature as standard, while 44% provide this feature as an optional extra, which means you will have to pay an extra premium.
However, if you do include this feature on your policy there are a few areas to be aware of. For example, some insurers will only pay the call out charge, or the labour charges up to a specified time limit. Other insurers may just pay costs for parts and materials or other alternative costs, again to a maximum amount outlined in the policy documents.
These limits are listed individually in the home buildings insurance policy documents. However, each insurer also puts in an overall limit on the amount they will pay out for a home emergency claim.
Our data shows that 26% of home buildings insurance policies provide £500 of cover, while 8% of policies offer up to £1,000 as the maximum limit for emergency home repairs.
If the roof damage to your home is so severe that you can no longer live in your home because it has been deemed too dangerous to stay, then your home buildings insurance could help you arrange alternative accommodation.
Your insurer may give you a pre-defined lump sum to help pay for the rent, while the roof damage is being repaired.
Our data shows that 15% of home buildings insurance policies offer between £30,000 and £50,000 to find alternative accommodation, while 44% of policies provide you with up to 20% of the amount insured on your home.
If you are unsure how much your policy will cover you for, then it is worth contacting your provider to find out.
As the severe weather and gales continue to batter the UK for the coming week, it may be a good opportunity to locate and review your home buildings insurance policy to ensure you have enough protection against roof damage. If you are considering your home building insurance options, why not use our comparison tool to compare your home buildings insurance policy against others on the market?
06 January 2012
More than half of all people renting a property in the UK have no cover for their personal possessions, according to the Post Office.
Their research also highlights that one in three people renting a property uninsured are worried about the lack of cover for their contents, with the main reason for not taking out any home contents insurance being blamed on the perceived cost of premiums.
Around 55% of people renting a property do not have home contents insurance, which is in stark contrast to the 17% of homeowners without cover.
These figures are of concern for the Association of British Insurers, who indicate that people renting are more likely to be victims of burglary, and that the large percentage of people not covered by home contents insurance are playing a risky game.
Not insuring the contents of your home could prove to be a costly mistake. While you may save money on insurance premiums in the short term, the cost of replacing your possessions would far exceed the price of cover.
Protect your possessions even if you are renting a property
If someone does burgle your home, your home contents insurance policy can help recover the costs of your stolen personal belongings.
It is important to ensure that you don’t just have cover for your valuable personal belongings, but have the right level of cover. One feature to look out for is the overall limit for valuables on your home contents insurance policy.
Our data shows that 8% of policies provide between £10,000 and £30,000 as the maximum limit for your valuable personal belongings, while 13% of products offer up to 30% of the overall amount that your contents are insured for.
Another limit to be aware of is the maximum level of cover provided for each individual valuable item.
Our data shows that 49% of home contents insurance policies provide between £1,500 and £3,000 for a single valuable item. It is important to be aware that some insurers can provide a higher single valuable item limit, however you can expect the cost of your premium to be slightly higher.
Another feature that home contents insurance policies provide is cover for money you have at home. If you are renting a property and it was burgled, our data shows that 61% of policies offer up to £500 to cover the theft of cash.
If you had a credit card stolen from your home, your home contents insurance policy could also help to protect you from any fraudulent use of your credit card.
Our data shows that 72% of home contents insurance policies provide cover against credit card fraud, and 29% of policies offer up to £1,000 to protect you from fraudulent transactions on your credit card.
If you are one of the many people renting a property who is worried about the lack of cover you have for your possessions, then it is a good idea to consider home contents insurance.
Take a look at our Guide to Contents Insurance for a complete overview of the features and benefits offered or use our Star Ratings tool to quickly identify policies with the level of cover you’re looking for.
13 December 2011
The Apple iPhone 4S and the iPad 2, along with 3D television sets, top the most wanted Christmas presents list this year.
As people scramble to get hold of this new technology for Christmas presents this year, insurers are issuing warnings to ensure you protect your possessions adequately from thieves.
Research from Aviva, shows that although Apple products, smartphones and 3D televisions feature heavily on the wanted list for Christmas presents, a number of these products also featured on the top 10 most stolen items last Christmas.
If you are planning on buying new technology for Christmas, you should check whether you have adequate cover on your home contents insurance to protect your possessions from thieves.
We have highlighted a couple of features to review to ensure you protect your new technology this year.
Protecting your Christmas presents from thieves
One feature that is certainly worth checking on your home contents policy is the total amount your contents are insured for - it is worth reviewing the current amount provided by your policy and revaluating the total cost of your contents in your home. It is essential this is done as insurers usually provide cover on a ‘new for old’ basis.
It is worth ensuring you have adequate cover to protect your new technology as the maximum amount you can insure your contents for varies from policy to policy – so check the details of your policy carefully.
Some insurers can set a maximum limit for a single item they cover, which means they will not pay out more than that limit to replace an item. They also sometimes set limits for ‘high risk’ items, which are often defined as most new technology.
Again, it is worth reading your policy documents carefully to ensure you have adequate cover as there is a varying level of coverage from product to product. Our data shows that only 12% of policies provide a stated amount of coverage on their policies.
As the festive period draws closer there are a number of ways to protect your home this Christmas and New Year. Simple tasks include
- ensuring you close and lock all windows and doors before you go out;
- not leaving Christmas presents under the tree in full view;
- not leaving discarded boxes such as laptops or TVs outside in view of potential thieves;
- keeping an eye out for suspicious people in your neighbourhood.
It is also worth reviewing your home contents insurance to ensure you have enough cover for Christmas presents. We have highlighted a key feature that is certainly worth checking and if you need more cover to protect your home contents and new technology, it is worth speaking to your insurer to see if they can increase your coverage – although there is a possibility that you may have to pay an extra premium for the added cover.
