Why some home insurance policies could leave you high and dry

But beware - it's essential to check what's covered by your
policy to make sure that you aren't left significantly out
of pocket if something goes wrong.

For example, 1 in 3 get burgled and yet estimates show that
over 20% of all household goods are not covered by your
home insurance; equally accidents such as flood damage are
increasingly common - the question is, are your home and
possessions covered?

Building insurance:

What does your policy cover?

A standard policy should cover: flood and storm damage;
fire, smoke and explosions; subsidence and third party
damage.

Does your policy cover the market value of your property or
full rebuilding costs?

The market value of your home could be considerably lower
than the rebuilding costs - especially in the case of
listed buildings. English Heritage require that if more
than 40% of the historic structure of a property has
survived you need to restore the whole property - given the
building restrictions on listed buildings, that could be
very expensive.

Are accommodation costs included if your home is
uninhabitable?

If the worst happens and your home is uninhabitable, do you
really want to have the additional stress of paying for
rented accommodation?

Home contents

If you are a tenant does your landlord have contents
insurance?

While landlords are required to have building insurance,
they may not have contents insurance or it may be limited -
if you are a tenant you may require your own policy.

What is the replacement policy?

The most basic level of cover is indemnity insurance, which
replaces like for like - if your TV is 3 years old you can
claim for the value of a 3-year old TV. Some insurance
policies replace new for old, so regardless of the age you
will get a new item.

Does your policy cover items that you take away from your
home?

Some policies cover any items that you take away from home
such as watches, jewellery - think about how much the
contents of your handbag, or your car etc are worth,
particularly if you use a laptop.

Is your garden covered?

Many people have a great deal of money invested in their
gardens from expensive plants and features to gardening
equipment stored in the shed - make sure your policy covers
this area.

Make sure you insure for the right value

One of the major mistakes people make with their home
insurance policy is to underinsure - write a checklist of
every item in your home to ensure you have insured for the
right amount. You also need to ensure high value items are
covered - most policies set a maximum value on individual
items.

Finally, keep up to date - the value of your possessions
could have increased dramatically in even a short period of
time - make sure your policy reflects new items you buy.

What security measures do you have in place?

A common reason for claims not being paid is that
policyholders failed to implement security measures
required by the policy - make sure you comply with the
terms of the policy.

One final piece of advice is: NEVER ASSUME THAT ITEMS ARE
COVERED - if you are unsure, always check your policy.

----------------------------------------------------
ASDA Finance home insurance is so good, they won the award
for Best Overall Home and Contents Insurance Provider by
'Your Money' magazine. Visit
http://www.asdafinance.com/home-insurance.html for more
details