Important !
Because insurance policies are not all the same, we cannot warrant the accuracy of the information given in these notes. We have based this information on cover typically given under most home insurance contracts, but you should in all cases check your policy wording to verify the cover provided and any exclusions applicable.
The schedule states that I am not covered for Accidental damage, what does this mean?
If you have cover for Standard Perils, this will typically include the following:
Fire, explosion, lightening, earthquake, smoke Storm, Flood*
Riot, civil commotion
Malicious acts**
Aircraft or objects dropped from them
Impact from vehicles or animals
Escape of water from a fixed installation**
Escape of oil from a fixed heating system**
Theft, attempted theft**
Falling trees
Falling aerials and masts
Subsidence, heave and landslip
* storm/flood damage to hedges, gates and fences normally excluded.
** These perils are often excluded if you leave your property unoccupied for a certain length of time (usually 30 or 60 days)
This means that although a fire may start accidentally, or a car may crash into your wall accidentally, these occurrences are listed in the standard perils list and are therefore insured.
In addition to the standard perils, most policies will automatically give cover for accidental damage to fixed glass and sanitary fittings under the buildings section, and accidental damage cover for non portable home entertainment equipment eg TV, home computer etc.
Accidental damage which can occur, but does not fall within these perils would need the extended ‘Accidental Damage’ option to cover them.
Some examples of this are:
Contents
Spillage of food or drink on a carpet or soft furnishing
Damage caused by dropping or knocking over fragile items
Damage caused by scorching where ignition has not occurred – eg from a hot iron or a coal jumping from a fireplace.
Buildings
Dropping an item through the ceiling when in a loft
Internal damage caused by water entering the property through an existing route or crack due to particular wind direction for example, but where no storm damage has occurred. (Repair of the point of entry would be excluded, as would any damage which happens gradually, rather than a result of a single event).
The buildings sum insured on my policy is lower than the market value of my property, am I under insured?
Not necessarily. . The amount that you need to insure your property for is actually the cost of re-instatement, and not the market value.
This needs to cover demolition, site clearance and rebuilding, including any professional fees payable including architects fees. This should include any walls, fences, gates, garden landscaping, footpaths, hard standing areas, patios swimming pools and tennis courts.
Factors which increase the market value of a property, such as the size of the plot or the location, may only have a minimal effect on the rebuilding cost of the property. Therefore, you will often find that the sum for which a building needs to be insured bears little relation to the actual market value.
For advice on rebuilding costs, including a quick and easy calculator for checking your sums insured, visit www.bcis.co.uk.
You should note however, that if you are unsure of the re-instatement cost of your property, there is no substitute for a professional opinion from a reputable surveyor.
My household insurance is paid with my mortgage. Am I allowed to switch?
Yes. And this is where we often make the biggest savings.
Some time ago, the government outlawed the practice of building societies giving any preferential terms to customers who place their insurance along with their mortgage. This means that you are free to switch insurance products without affecting your relationship with your mortgagee.
Your bank or building society does have the legal right to have their interest noted on the policy – this is so they can ensure that the property is insured adequately to protect their investment – This is something we deal with on a daily basis and presents no problem whatsoever.
How can a broker beat the direct insurance companies prices ?
Most direct insurers can give a quotation based on their own rates for any given risk or property. However, if their rates are not the best for that particular situation, you have no way of knowing unless you contact every insurance company for a quote.
Graham Edwards Ltd have access to over 60 home insurance products with a range of insurers across the market, many of these being available through brokers only. By obtaining a quote from all of these products from your single enquiry we can carefully select both the most competitive and the most suitable for your exact requirements, the result being that in most cases we are able to provide a better quote than somebody has managed to achieve themselves.
We are also able to talk to insurance company underwriters to discuss individual cases where the particular features of a case warrant this. Particularly for larger or non-standard risks, our ability to actually visit a property personally and prepare a presentation for potential insurers means that we can negotiate competitive terms that might otherwise have been unavailable.
I have had an offer from my regional water company to cover my plumbing. Am I already covered?
We are often asked by our clients for advice about additional insurance products which are recommended to them by their regional water supplier. These guidance notes highlight what cover you may already have under your household buildings insurance policy, which will help you to make an informed decision about the additional products advertised.
Examples of cover typically provided under a household buildings policy
All sections are subject to policy excesses, exclusions and exceptions.
These details should be checked in your policy, and read in conjunction with all other policy sections.
1 |
Loss or damage caused by water escaping from water tanks, pipes, equipment or fixed heating systems |
Insured |
2 |
Loss or damage caused by water freezing in tanks, equipment or pipes |
Insured in most cases |
3 |
Accidental Damage to underground services which serve your home and for which you are legally responsible. |
Insured |
4 |
Gradual deterioration or wear and tear |
Not insured |
5 |
Trace and access
Eg. (the cost of accessing a leaking pipe which is buried under a driveway) |
Insured in many cases, Check your policy! |
6 |
Clearing of blocked drains or sewers |
Not insured |
Examples
1) You are insured for damage done by water escaping from water pipes, but unless the pipe has been damaged accidentally, or by freezing, the repair of the pipe or installation itself is not insured.
2) You are insured for accidental damage to underground services for which you are legally responsible. Examples of accidental damage are:
a) tree or plant root ingress into a pipe or drain, causing a burst or blockage
b) A heavy vehicle accessing your property causes a drain to collapse underground
3) You are not insured for blocked or damaged drains or pipes caused by gradual deterioration over time or failure of the drain due to age or wear and tear.
If you have any queries regarding cover provided by your own policy, please do not hesitate to contact us and we will be happy to provide you with specific advice.
