In our last post, we covered 10 common questions you might have while doing a quote for home insurance. In this blog, we’re looking at 10 more to make sure you’re informed ahead of taking out cover.
Being underinsured means having less cover in place than it would cost to replace your buildings/contents. In the event of a claim, if you are found to be underinsured on your policy, you will typically only have a portion of your claim paid equal to the proportion of your insurance coverage, regardless of the size of the claim. For example, if you have contents worth £50,000 but only have £25,000 cover, then your claim for £4,000 would only have £2,000 paid out.
‘Dual insurance’ means being covered for the same thing on multiple policies, whether that is with different providers or not. It can happen where people don’t understand everything they’re covered for, or forget about policies that automatically renew. It is something you should strongly avoid, as it is unnecessarily expensive and can lead to issues at claim as the insurers decide between themselves what proportion they’ll each pay.
It depends on the kind of business. If you are just working from home (‘clerical work’), this is usually fine under a standard home insurance policy. If you have any visitors to your home as part of the business, or you hold any form of stock, then this would typically fall outside a normal home policy and require specialist cover.
Most standard home policies aim to cover all individuals living in the house under the same policy, as they are one family. Where each housemate wants to buy a policy just for their own contents, it needs working out differently and will require a different type of cover. In these cases you’ll need to look for ‘Shared Contents cover’.
Yes, having a second applicant can be a great idea as both people can call to discuss the policy or make a claim. Insurers shouldn’t charge you a fee for this, and in some cases it may even make the policy cheaper.
Most insurers run a credit check on you if you want to pay premiums monthly. Your payments are actually going towards a premium finance plan, so if any payments are missed then this can have a negative impact on your credit score. It also usually costs more to pay this way. At coverbaloo, we don’t do this and it doesn’t cost any more to pay monthly.
Sometimes, but not always. Price comparison sites ask the questions as some providers reduce price if they’re present. Regardless of the impact on cost, you should have one in your home for your safety.
Some insurers need you to tell them what type of locks you have on windows and doors to reduce their risk. At coverbaloo, you don’t need to know this to get a quote, so what are you waiting for?!
High risk items always stay in your home, personal belongings are for extra cover to take things outside of your property – so it depends if you wear them out or not.
There may be some providers where having smart home security gadgets affects your premium, but for most standard home insurance the incentive to use them should be for your peace of mind rather than changing your cost of policy.
Hopefully you learned something new from these questions – check out for the rest of our blogs for more information and useful tips about insurance.
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