An existing customer called us to explain that their contents insurance with their bank had gone up considerably without any reason. After challenging the prices due to the late renewal notice, they agreed to reduce, but not by much and following this, they called us for help.
What we did?
We explained the sums insured to the client which helped them understand the easiest way to organise the sums insured on the policy. The first item we picked up on, was the fact the client had a +£30,000 everyday ring she wore which was not covered, in addition to other items. We instantly agreed to replace the policy on a higher net worth basis, so we could secure more cover for their needs. The client also had concerns about expensive items which were belonging to their children away in a university accommodation.
After explaining how to structure the sums insured, specifying the higher valued items we were able to secure a policy with another insurer, which included a lot more cover for their needs. We were really pleased to see the customer was quite happy with the new policy, as some of the higher value items they had, was passed down to them by their family, which made the contents insurance quite stressful to the customer.
Premiums vs Cover
Existing policy with the Bank £1440 including tax, on a normal contents insurance policy, which excluded their high value items. Our policy was £1164 including tax, which included all the higher valued items, and a £25,000.00 individual item limits without the need to specify. Needless to say the customer was a lot more comfortable under this policy, then the current one and the saving was a bonus!
Key to contents and house insurance, is knowing what the sums insured relate to. The most common mistakes we see is when customers mix the contents sums insured up by accident. For example, listing all the items including personal possessions or valuables into contents.
Best action you can take, is to walk around your home and look at the contents you have. You are there every day, but chances are you don’t actually notice what you have. Look at listing your contents room by room, and think about the costs, should it all be lost in a fire or flood? You will surprise yourselves when you realise how much you actually own.
The contents sum insured needs to cover a total loss, and on a new for old replacement. If you do not get this right, you have a good chance of being under insured.
As always if you are ever in doubt, use #TheBetterBroker