One to watch - reduced building cover on renewal

Anon · 12 January 2010 at 11:23PM

I received renewal information through from my existing insurance broker (well known online company) and didn't think much about it. The covering letter made a big claim about reducing my premium by around £10 this year compared to last - it includes the usual speil about checking your particulars and then phone up or head to the website to confirm/buy. However, when I looked through the paperwork before working through the comparison sites I noticed that the buildings insurance offered is much less than I had last year (significantly less - last year was for up to £500k which more than covered my needs, the rebuild cost this year has been understated at around £110k which is around £60k less than what our survey said a few years ago - I assume that rebuild costs haven't dropped that much, despite the downturn?).

I am sure that some people will pay little attention to the paperwork, particularly if their insurer sends out the renewal notice making claims of savings, as you may assume that you are renewing like with like. The renewal also does not include legal cover, which it did last year. Putting the rebuild cost back up to the right value, and adding in the legal cover means going with this company is £30 more than their renewal letter, and nearly 28% more than last year.

I am not naming names, but just giving general heads up to check before you buy!

Anon

dacouch · 12 January 2010 at 11:34PM

Name the Insurer, we can then post any relevant links and make comments on it.

Anon · 12 January 2010 at 11:45PM

Oh go on then, Insure.

Anon

dacouch · 12 January 2010 at 11:50PM

Is that Insure and Go, if so which underwriter did they place you with?

Anon · 13 January 2010 at 1:16AM

No, Insure.co.uk - underwriters were different on renewal notice to last year (don't have information to hand) - my point was really to read the paperwork to ensure that your covered value is enough/you are comparing like with like.

Many thanks

Anon

dacouch · 13 January 2010 at 1:23AM

It's definately good advise that a lot of people don't do.

I would expect (No doubt so would the FSA) that something as major as reducing the building sum insured should be pointed out very very clearly. Especially when they reduce it to an amount well below the actual cost your home would cost to rebuild.

I have just found this on the insure site #

Do I need to know my buildings re-build cost?

No, in some cases the buildings section of your policy automatically provides cover up to £500,000 for the cost of rebuilding your home and any outbuildings so you'll never have to worry about being underinsured.
Please note that in some circumstances, however, we are not able to provide the £500,000 automatic cover and we will require you to advise us of the re-build value of your property and this will then be the amount of cover provided.

One to watch - reduced building cover on renewal

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