Having an insurance policy and paying your premium does not automatically guarantee that your insurer will pay out when you make a claim.
Every insurance policy has exclusions (things or circumstances that aren’t covered) and limits to the amount your insurer will pay out for any single article and/or incident. There are also terms and conditions that must be complied with, including the need for you to take reasonable steps to avoid insured events occurring in the first place.
Here are five key things to know and do, to make sure any claim you make has the best chance of being successful:
Make sure you have an appropriate level of cover
When choosing the level of cover for your own possessions, take time to properly value everything. If the worst happened and all your things were lost in a fire or other insured event, you need to be confident that your insurance payout would allow you to replace everything.
Also, consider checking and having ‘new for old’ cover so that you’ll be paid whatever it costs to replace items. If you have ‘indemnity cover’, this will only pay you the current value of your possessions, and if you’ve had them for several years, that may be less than the price of a new version today.
Inform your insurer if there is a change in circumstances
If there is a change in response to any of the questions you answered when completing your insurance application form, you must notify your insurer. That includes:
- Someone new moving into the property
- Marriage or divorce
- A change in your job
- Being declared insolvent or bankrupt
- A criminal conviction
Keep your home secure
If someone has burgled your home and stolen your belongings, your insurance policy will only be valid if there was a break-in. If you left a window open or a door unlocked, meaning the intruder was able to gain access without forcing entry, your insurer is unlikely to pay out.
Take steps to prevent further damage
You must take whatever action could be reasonably expected to limit the level of damage. For example, if there was a water leak in the property, your insurer may expect you to turn off the water supply and move your possessions to a safe place. If you simply left everything where it was, your insurer may refuse to pay out for items that were damaged after the leak was identified.
Always ask your landlord or agent where your ‘stop cock’ is and make sure it’s easily accessible so you can switch water off quickly.
Keep detailed records
Your insurer will require you to supply information about the event and evidence to support your claim, so make sure you document everything, for instance:
- Take photos and videos of damage
- If a crime has been committed – such as vandalism or a break-in – report it to the police right away and get a crime number
- Keep invoices and receipts for any expenditure relating to the claim
- Record all communication relating to the event, e.g. with your insurance company, the police, your landlord and agent
- Gather evidence of item values and proof of ownership
Charles Foster Bode Insurance Services, Bode Insurance Solutions.
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