Confused on "£1m" level of buildings cover - do we really get that?

Cash_Cow

Just renewed with Hastings and they asked me for house rebuild cost despite policy stating max £1m rebuild cover and £75k contents.  I always thought these high max coverage figures were great as I don't have to amateur guess rebuild cost or tot up all the bits of content value - we would have decent headroom in the event of any claim. She nevertheless asked me to define rebuild cost and amount of contents covered and said it would be limited to this despite the 'sum insured' max.   I remonstrated that the 'sum insured' figure is therefore deceptive and misleading. She said all insurers do that. Is she right as the policy seems plain as day on what figure you are covered up to as a max:

dunstonh

The £1m is an "upto" figure. 

They are checking the defined rebuild cost and contents to ensure you are not above the "upto" amount.

 I remonstrated that the 'sum insured' figure is therefore deceptive and misleading. 

Its not.   Its there to be an easy way to avoid having long discussions and checks on whether you have £30k, 50k, 38k or whatever.  They will cover you as long as you have less than the "upto" figure.

 Is she right as the policy seems plain as day on what figure you are covered up to as a max:

She is right.  And you are right, as you clearly state "up to as a max".   It doesnt say you will get £75k paid out on contents if you have £40k.

Cash_Cow

That makes sense - its just having that headroom that is appealing.  Obvs they pay on what the actual claim is up to that max. Contents is likely half the max in reality.  I feel she explained it poorly and you didn't! She insisted on figures for rebuild and contents though rather than ask 'is £1m and 75k max cover limits adequate for your needs'.  Slight niggling doubt remains...

MyRealNameToo

I wonder if the confusion has come because Hastings is both a broker and an insurer? 

Traditionally you have a sum insured rating, you say how much cover you need, that sets the limit of the policy and the premiums. For a long time now you also have bedroom rated policies which have a preset high limit and instead you declare how many rooms your home has (no longer just bedrooms despite the name) and the insurer rates on that instead of a limit. 

It's possible their panel include both bedroom rated and traditional sum insured which is why they ask both. Someone who only sells bedroom rated wouldnt normally ask for sums insured. 

Ultimately you can only claim for your losses, so as explained above a £75k limit but a £40k amount of stuff is effectively limited to £40k however its only effectively because were you to go mad one year and buy a load of extra stuff pushing your contents to £60k then on a bedroom rated policy you wouldnt need to declare the change as you are still within the limit but a sums insured policy you would need to increase the limit. 

Even a sums insured policy will have a maximum an insurer will typically be comfortable going up to but you will never see that number published anywhere customer facing.

Did you buy the policy? If so is your answers to the questions on values printed on the schedule?

Cash_Cow

Yes I screenshotted the image from what i bought.  Thank for your help.