We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Home Insurance Discussion

Options
18911131479

Comments

  • gaily
    gaily Posts: 190 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Hi,

    First time buyer here and looking at buildings insurance quotes. I do not know if the property has subsidence. The home report says "there was evidence of previous movement by cracking in the walls but no evidence to show movement was serious and no signs of recent movement" do i say there was subsidence?it ups the quotes from £100 to £300!!

    The flat is early 1900's so there is bound to be some cracks!

    Don't want ot click something we dont have!

    Cheers,

    You'll need to notify insurers, but advise that nothing recent, and get hold of any reports that were made. Go to them with as much information as you have - Honesty is the best policy. It is a material fact.

    If you don't do it now, you may save £200 annually, but if there is ever a claim to be made, then they may not cover it at all - or worse cancel your policy as you have omitted information.
    Always on the hunt for a bargain. :rolleyes:

    Always grateful for any hints, tips or guidance as to where the best deals are:smileyhea
  • gaily
    gaily Posts: 190 Forumite
    First Post First Anniversary Combo Breaker
    Options
    As someone who works in the insurance industry. Under insurance is the biggest problem. If you insure, you need to insure the lot - for the replacement cost new.

    You may have a Wii that you bought off a mate for £50, but if you needed to replace it following a loss, you might have to pay full price.

    The way we advise people to insure their contents is at least a 3rd of the buildings sum insured - for every £100,000 on the buildings, you'll probably need £30 or so contents - more if you if you went somewhere priceier than Ikea to deck your house out.
    Always on the hunt for a bargain. :rolleyes:

    Always grateful for any hints, tips or guidance as to where the best deals are:smileyhea
  • underthematress
    Options
    thanks, im going to phone them. Its not an area that has subsidence, it is a 100 year old building there will always be cracks but I want to check before taking out the wrong policy!
  • dacouch
    dacouch Posts: 21,637 Forumite
    Name Dropper First Anniversary First Post
    Options
    gaily wrote: »
    As someone who works in the insurance industry. Under insurance is the biggest problem. If you insure, you need to insure the lot - for the replacement cost new.

    You may have a Wii that you bought off a mate for £50, but if you needed to replace it following a loss, you might have to pay full price.

    The way we advise people to insure their contents is at least a 3rd of the buildings sum insured - for every £100,000 on the buildings, you'll probably need £30 or so contents - more if you if you went somewhere priceier than Ikea to deck your house out.

    I have never heard of that example before and it does not sound correct especially when the average person is thought to have circa £42500
  • huckster
    huckster Posts: 4,900 Forumite
    First Anniversary Name Dropper First Post
    Options
    dacouch wrote: »
    I have never heard of that example before and it does not sound correct especially when the average person is thought to have circa £42500

    I have heard of the £30k of Contents per £100k of Buildings cover, but I think it is a bit dangerous to be giving this information out to customers. I think this is supposed to be some internal rough estimate based on the Insurers own stats. I have also heard of £10k of Contents for each bedroom a property has as a rough guide.

    Personally I tend to suggest the customer conducts a room by room estimate of the replacement value of Contents and if they are in any doubt about antique items or valuables they should get valuations done. Only a customer can provide the sum insured details, as if it becomes known later that Insurance sales staff have been giving out misleading advice, this can lead to criticism from the FOS/FSA.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • dacouch
    dacouch Posts: 21,637 Forumite
    Name Dropper First Anniversary First Post
    Options
    The £30k and the £10k are both dangerous and would not be suitable for lots of homeowners. It is a scary thought if call centre staff were giving this advice out to customers.

    I agree there is no substitute for assessing your own contents to find out how much you need
  • gaily
    gaily Posts: 190 Forumite
    First Post First Anniversary Combo Breaker
    Options
    dacouch wrote: »
    The £30k and the £10k are both dangerous and would not be suitable for lots of homeowners. It is a scary thought if call centre staff were giving this advice out to customers.

    I agree there is no substitute for assessing your own contents to find out how much you need

    Having read the above, i do agree with you the dangers of getting it wrong. It's just that so many people now adays don't know what the contents of their house are worth, and until they have done a room by room assessment of their property cannot accurately judge.

    We give it as a guide to our clients (just to add, we're not a call centre, and we only deal with High net worth policies, £30K contents per £100K buildings is low for a lot of our clients) it gives a starting point until we can convince them to do the leg work on a property checklist.

    We never say that this is a definate, but advise that as an industry standard, it is a guide.

    http://www.rka.co.za/Quotes_Forms/Inventory.doc

    This is the type of form that we get out clients to complete - don't know where this one comes from, I just Googled it - I like the bit about the domestic staff!!

    The Hiscox checklist is a reasonable guide, but does come up with values on the high side.

    Quite few of our clients say that their mates built their house, so if it were destroyed, they'd get them to rebuild for a lot less than the rebuild that an architect would quote - what happens if they couldn't fit you in, or had gone bust, or you'd fallen out - you would not be able to get mate's rates, and then would be under insured.

    There is no excuse for not doing a bit of work on your insurance to get it right, if you have a big claim, you'll be glad you did - whether you have £10K of contents or £100K
    Always on the hunt for a bargain. :rolleyes:

    Always grateful for any hints, tips or guidance as to where the best deals are:smileyhea
  • hannah29_2
    hannah29_2 Posts: 177 Forumite
    Options
    hi
    we are currently renting a house so need contents cover, however we also own a house which my mother lives in. she pays for contents in that but we need to cover the buildings insurance on that. can anyone recommend anywhere where i can buy them seperatly but still get a good deal?
    hannah
  • Broadstone
    Broadstone Posts: 216 Forumite
    Home Insurance Hacker!
    Options
    Blimey. I have just followed Moneysavingexpert's guide for cheap home insurance and have saved myself over £140-00. The policy, which I have got, is almost the same as my old one.

    I could have got a further £10 reduction with cashback but I got my policy in the end via an operator and she offered me a £8-00 reduction on the internet price; so I accepted this and didn't bother with cashback option.

    Thanks moneysavingexpert and this forum !
  • neil0491
    neil0491 Posts: 25 Forumite
    First Post First Anniversary Combo Breaker
    Options
    I will be renewing my home/content insurance at the end of this month, I'm just looking for some advise on what the best deals are and how/where to get them, what to look out for, etc - at present I could only pay by monthly installments so I know that I would be paying more.

    Any advise would be good advise
Meet your Ambassadors

Categories

  • All Categories
  • 344.8K Banking & Borrowing
  • 250.6K Reduce Debt & Boost Income
  • 450.5K Spending & Discounts
  • 236.9K Work, Benefits & Business
  • 610.9K Mortgages, Homes & Bills
  • 173.9K Life & Family
  • 249.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards