When we recently compared home insurance quotes in the UK market we looked at several of the more popular price comparison websites (full details can be found in our home insurance comparison report).
Sub-Standard Cover
What we found curious is that upon entering the price comparison websites, the insurance providers lure you into taking quotes based on basic Standard Cover (this means that if you damage something yourself you’re not covered) with a massive ‘voluntary’ excess, typically £300.
Add this to the compulsory £50 excess and you’re agreeing to pay the first £350 of any loss and the chances are that you probably didn’t even notice. You could also be forgiven for not noticing that some of the cheaper quotes exclude lots of little benefits that come as standard.
Maybe these policies should be labelled as ‘Sub-Standard’ cover?
Common Claims Excluded!
We consider that cutting out Accidental Damage cover from a home insurance policy is a seriously bad move. Bear in mind that many of the most common claims made under a house insurance policy are paid under the Accidental Damage section of the policy, so the chances of something going wrong that is actually covered is slim – oh and don’t forget that £350 excess as well!
Don’t believe the hype
It’s not surprising to hear on the telly “We saved £127 on our Home Insurance by logging onto XYZ Compare”.
We are thrilled for you, Mr & Mrs. Sherlock, but what you really should be saying is “Our brains gave in to the constant bombardment of TV insurance adverts; we fell into the trap and believed the hype; cut our cover to the bone and are now unlikely to be able to claim for the most likely events”.
If saving money was your sole objective then your knowledgeable local insurance broker may well have saved you a further £50. We suspect, however, that your local broker would have seriously discouraged you from buying such a home insurance policy as Accidental Damage costs surprisingly little more than basic Standard Cover.
What are you not covered for?
If you have had similar experiences, we would like to hear from you.
If you want to save money on your home insurance, but still want to be covered for the things that matter, speak to one of our experienced advisors.
Atlas Insurance Services Ltd are an independent UK insurance specialist. They can be contacted on 0800 8087 121 for a free no-obligation home insurance quote.
