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1st July, 2021

Is it time to review your home insurance?

We’ve talked a lot in the past about the difference between Defined Events and Accidental Damage, but as Accidental Damage home products are becoming more common, are you aware that not all Accidental Damage covers are the same?

It is important to understand the level of Accidental Damage cover offered by insurers and how different they can all be. In more recent times we have started to see policies that seem to be Accidental Damage cover on the surface, however on closer inspection the Accidental Damage cover provided has been a restricted form of Accidental Damage cover. Meaning that in the event of a claim, cover would not respond as you might think.

We recently had the opportunity to review a policy through a direct market insurer with an Accidental Damage optional benefit added (for which an additional premium was paid). We found that the offer of Accidental Damage cover by the direct market insurer was restricted and did not cover jewellery items (as well as a number of other personal items) for Accidental Damage, both inside and outside of the home. This meant that these content items, were only be covered for Defined Event losses. In addition to this restriction, the Accidental Damage cover was also restricted to being only in the home for all other content items, as there was no Accidental Damage cover for any contents away from the home. Meaning that the premium paid for the Accidental Damage cover option was only for a limited number of contents items and only while inside the home.

The more ‘traditional’ Accidental Damage policies provide a far broader cover. Generally, these covers would provide Accidental Damage cover to all contents both in and away from the home (with some limits applying e.g. jewellery is included, but up to a certain value without the need to specify it on the policy).
Do you know how you’re covered?

If you’d like to review your current cover please speak with Chloe Watts, our domestic Account Executive.

Author: Murray Bruce