What Doesn't Home Insurance Cover?
It's important when shopping for home insurance to look at any exclusions that could affect your claim. Although home insurance covers you for most eventualities, there are some things that are simply not covered. Every insurance firm is different and the amount of cover available can differ. It's highly recommended that before you commit to a contract, you read the policy terms to ensure you have the right cover for your home and its contents.
Home insurance doesn't include cover for wear and tear. So if your property is not in a good state of repair a claim may not be paid in full. Similarly, some insurers may not compensate fully if you have not lived in your home for more than 30 days. This figure does vary from one insurer to the next so if you plan on owning a holiday home make sure your policy provides you with the right cover.
Other Common Home Insurance Exclusions:
- Storm damage to gates and fences
- Pollution or contamination unless it occurs suddenly and is accidental and unexpected.
- Loss or damage to any computer data caused by software viruses.
- Loss, damage or liability resulting from or in connection with terrorism.
Remember that most insurers will require you to meet the first part of any claim. The amount of excess you pay isn't usually a set figure but is dependent on what you are claiming for in the policy. Excess can range from £50 to as much as £1,000+ so ensure you make financial provisions for this so that you can actually afford to make the claim.
It's also important to keep your policy up-to-date. If you make home improvements it's imperative that you tell your insurers. Otherwise you may find that you are not fully covered and could end up out of pocket or worse, your home insurance could be completely invalid. It's also worth checking to see whether your level of cover is index-linked. This means that your sum insured takes into account changes in rebuilding costs due to inflation or deflation.
If you run a business from home then bear in mind that the majority of home insurance policies don't cover losses arising from business activity. Some insurers do offer options to extend your home insurance to cover business related activity.
DISCLAIMER: All content is for guidance only and does not constitute individual financial advice.
www.homeinsuranceinfo.co.uk is not authorised by the FSA to advise on insurance matters.
