Why are people so thick re: house insurance?

[Deleted User]

Sick of seeing people on facebook moaning that insurance company are ripping them off and they're not going to bother next year etc because they won't pay out for their roof thats leaking or whatever because it wear and tear. Usually followed by the whats insurance for then question.

1) House insurance is for accidental one-off events. Its not a home maintenance policy.

2) Why not read what your signing up for in the first place?

I think I'm about to phone Ford today and moan. I wanted to fly to Florida this morning but I can't get it to work. Whats the point in a car if it can't fly?

recci

I think older people moan about this sort of thing because in the past insurance did cover those types things. I remember growing up in the 80s and my mum claimed the insurance for all sorts of stupid things you wouldn't get away with now.

Times have changed and you really do get a bum deal compared to the past. She refused to get life insurance because the old style life insurance wasn't available any more. You used to get life insurance polices that you paid into for 25 years then got a lump sum back at the end if you didn't die. This was standard now all that you can get is whole life polices that give nothing back unless you die.

[Deleted User]

recci wrote: »

I think older people moan about this sort of thing because in the past insurance did cover those types things. I remember growing up in the 80s and my mum claimed the insurance for all sorts of stupid things you wouldn't get away with now.

Times have changed and you really do get a bum deal compared to the past. She refused to get life insurance because the old style life insurance wasn't available any more. You used to get life insurance polices that you paid into for 25 years then got a lump sum back at the end if you didn't die. This was standard now all that you can get is whole life polices that give nothing back unless you die.

There were never house insurance policies where you could claim for wear and tear. You just used to be able to claim for anything and put any old reason down and they'd pay up most of the time.

Whats changed is they now check a lot more and make it difficult. Probably due to people claiming years ago. IMHO sometimes its just too difficult - after all who keeps reciepts for something they may have bought years ago?

In terms of life insurance, this is also the same. I think you're thinking of an endowment policy which as you said also paid out at the end as well as paying out if you died.

Endowments had a bad press a few years ago. People were sold interest only mortgages and an endowment policy with the idea the endowment return after 25 years would pay off the capital. BUT they were badly mis-sold and in most cases did not perform well enough to pay off the mortgage.

Not sure whether you can get this sort of product any more? Would assume a life insurance policy paying out £100K on death is cheaper than an endowment paying £100K on death or £20K after 10 years instead as well.

I guess thats the thing with insurance. It costs money and you only need it in the event of bad things happening.