Avoid These Insurance Traps! by Finance News Bulletin

Published: 24/10/07

The days are receiving darker, the nights are receiving colder and the burglars are getting improved at sneaking in through your casementAccording to HSBC, burglaries committed by forced entry increase by 21% in winter, resulting in one forced admission to a UK property every 60 seconds And you won't precisely be live "Tis the season to be jolly" if your home insurer refuses to pay up, citing something in the little print you failed to spot when you took out the policyTo ensure this doesn't happen to you, timepiece out for these sneaky clauses and traps when trade home insurance:Approximately one in 10 insurance policies exclude the inside of your garden, such as garden furnishings, children's bikes and trampolines, for loss or damage through robbery, storm and flooding

Check whether there is a ‘contents in the open' exclusion in your policy and what level of cover you have for such insideSneaky tricks some insurers will use to trip you up comprise only covering items which are ‘normally' left out in the open within the boundaries of your garden, such as garden furniture, statues and -- my individual favourite -- gnomes, while exclusive of items such as barbecues, stereos and other items you would take outside for a specific purpose, such as a social gatheringGreen-fingered homeowners should also take note: the majority of insurers do not wrap the cost of replacing damaged or lost plants in your garden and present little cover for theft of possessions stored in an outbuilding, backyard shed or garageWhat's more, you are likely to find that anything outside the limits of your property is not included - so promise me you will be careful where you position those gnomes

The most popular substance targeted by thieves over the past five years were movable phones (44%), wallets (25%) cameras (8%) and MP3 players (6%), according to a review by Halifax You are unlikely to be covered for robbery, loss or damage to these items outside the house and so will require to add ‘personal possessions cover' to your existing policy to gain extra protectionIt's also worth bearing in brain that many insurers will not pay up if a valuable thing worth over £1,000 is not specifically listed on your home cover policyNearly six million Brits are under-insured, according to Abbey

Why Because many homeowners incorrectly assume that, when deciding the height of cover they need, they should only tax the value of the items they would want or need to replaceFew people realise that you're in fact supposed to insure your house for the total value of all the belongings inside it If, after you have made a claim, the insurer decides to survey your house and finds that you have under-insured your belongings, it may refuse to disburse out the full cost of replacing your injured or stolen possessions

Here at The trick, we like to look on the bright side - even as regards cover companies So now you know the traps to keep away from, here's a brief breakdown of some plus-points to look out for when choosing a policy:Wedding cover If you are planning to get wedded this year, look for a rule that offers a temporary increase in the contents sum insured after a marriage, so all those expensive gifts will be completely insuredStudent cover

If your son or offspring is at university, instead of buying them separate insurance, you could opt for a rule that will cover their belongings as well as your own Insurers like Lloyds TSB, esure, More Th>n and Norwich amalgamation offer students cover for up to £5,000 value of possessions or 15% of the sum insured on their parents' rule, at no extra chargeFree lawful expenses cover This insurance covers the cost of employing solicitors and barristers to resolve legal disputes

Seasonal add to Some insurers will automatically be relevant a 10% seasonal increase over Christmas to reflect the extra cover wanted when there are presents under the treeFridge and freezer inside Some insurers will cover the cost of replacing the inside of your fridge and freezer if, for example, there is a power slash or the appliance breaks down

So there you have it: the tricks, the traps and, most excellent of all, some treats insurers will employ to lure you into their clutches© Copyright 1998-2007, The Motley Fool Limited All rights reserved This fabric is for individual use only

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