How you could pay hidden cost of ‘budget’ home insurance
‘ALARM bells should be ringing over so-called “budget” home contents policies. A staggering 45 per cent of contents claims paid by “high net worth” insurers last year would not have been covered by standard insurance companies.
Ordinary home policies hide away an averaging clause. If a claim is made and your contents exceeds the sum insured, budget insurers will reduce its payout proportionately.
This means it is not only vital to place a realistic figure on replacing all contents items, but also to keep such valuations up to date.
“A claim would only be reduced if someone deliberately acted dishonestly,” says Charles Dupplin, a director of Hiscox Insurance, one of the leading high net worth insurers.’
Read more at How you could pay hidden cost of ‘budget’ home insurance
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