The purpose of home insurance is to provide homeowners with cover for unexpected and potentially costly situations—such as damage caused by a storm or fire. Yet, according to a recent study conducted by the Association of British Insurers, more than 20 per cent of all home insurance claims are rejected. The leading causes for claims to be rejected are common, simple errors made by the homeowners. To ensure that you are successful in submitting a claim, here are the three most frequent errors made by homeowners to avoid:
- Homeowners fail to maintain the quality of their home. Damage caused over a period of time—such as water seeping through a crack in the roof, which causes mould or other structural deterioration to occur—would not be covered. It is the homeowner’s responsibility to perform regular maintenance to ensure that the building is structurally sound.
- The submitted claim does not exceed the policy excess. Some homeowners choose a higher excess in order to lower the cost of their premium. However, this decision will require that the homeowner pay more out-of-pocket before the claim becomes viable.
- Homeowners have purchased the incorrect cover or are unfamiliar with what is covered under their policy. Some homeowners may believe that any damage that occurs to their home is covered by their policy—unfortunately, this is an inaccurate assumption. For example, a standard home insurance policy generally does not include accidental damage as standard.
If you are guilty of any of these common, simple errors, there are equally straightforward solutions. The following three pieces of guidance should help ensure that your home is structurally sound, while also potentially lowering your premium:
- Verify that your policy covers the cost to rebuild your home rather than its market value.
- Ensure that your contents insurance covers all the valuables in your home, which includes the attic, shed and garden.
- Make home security improvements such as installing locks, storm shutters or alarm systems.
However, the most effective method to ensure that your claim will not be rejected is to discuss your home insurance policy with your Bond Lovis Insurance Brokers broker today.