Figures released by the Association of British Insurers show that only 79% of home insurance policyholders are successful in their claims. The other 21% is not down to the insurer, says ABI’s Director General, but misunderstanding and misinformation from the policyholder.
Picture a scenario where a leaking roof has finally fallen through, causing extensive damage to the bathroom below. This is going to take £4,500 to replace entirely, but despite having home insurance in place, the insurer is refusing to honour the claim.
There could be plenty of reasons why, none of which include the insurance provider trying to make things difficult for their clients. The incident could be the result of a long-standing problem which has not been addressed, in which case your insurance will not cover you as policies are designed to cover “sudden, unexpected and accidental” incidents according to an ABI spokesman. Or the bathroom which is worth £4,500 has only been valued at £2,000 according to the policy – which is not enough to cover the cost of a replacement suite.
The Association of British Insurers’ Director General Huw Evans said the decision to release figures showing that one in five home insurance claims are rejected, is to explain that insurers are not trying to catch policyholders out, with whom the responsibility to make sure they have the right protection in place ultimately lies:
“Contrary to popular belief, insurers want to pay honest claims. It helps nobody when customers have bought the wrong product or have not disclosed important information,” he said.
“Buying insurance should never just be about getting the cheapest price in the quickest time possible, it should be about ensuring you have the right product for your hour of need.”
This is a point on which McClarron Insurance, independent insurance brokers in Malton would agree on, as Paul Schofield, McClarrons’ Private Client Manager explains:
“Quote engines hold a lot of appeal because they allow you to sort insurance quickly and easily, but by focusing on price you could be missing important exclusions which you will only know about when your insurer refuses to pay out.” he said.
“There is no comparison for expertise, and we would always explain to clients precisely what they get with each policy we present to them, so they would hopefully never find themselves in a situation where they are not covered on their insurance when it is most needed.”
If you have any uncertainty around your home insurance and what it is actually protecting, call the personal lines team at McClarrons who will be able to talk to you about accurate valuations, what should be included in your policy, and ways in which you can avoid being refused by your insurer.
Call on 01653 697055 or email enquiries@mcclarroninsurance.co.uk.
