3 Common Misconceptions About Property Insurance
3 Common Misconceptions About Property Insurance
There are plenty of pitfalls to owning a property, and plenty of people ready to offer advice that is factually incorrect.
From mortgages to repairs, insurance to repayments, everyone who owns a house has an opinion or experience and sometimes, that experience is relayed to others causing a spread of misinformation. Whether it is through hearsay or a factually incorrect internet article, getting things wrong can lead to ill-informed people making poor decisions.
One element of owning a home which often falls foul of such issues is insurance. Even reputable newspapers such as The Guardian have carried horror stories which serve as a warning for homeowners. Some are accurate, but some only serve to worry and cause anxiety. To help you sleep soundly in your insured home at night, we are putting three common misconceptions about home insurance to bed, once and for all.
Separating Buildings and Contents
One common misconception is that as a homeowner you must get your building’s insurance and your content insurance from the same provider. That is not true; you are free to use who you want for both and you are not duty-bound to get the latter.
Building insurance is usually a prerequisite of having a mortgage, whereas contents cover is only optional, although still advisable. However, you are free to take policies out with two companies if you are happy to stay on top of the additional administration.
Flooded Houses Are Hard to Insure
Another popular misconception is that a flooded house is uninsurable. That is certainly not the case, especially as there are many reasons for flooding. It might be a property that has flooded due to an issue with its internal plumbing. There are specific policies which cover your heating and drainage system on offer, for your peace of mind. The plumbing and drainage insurance options on HomeServe shows how easy it is to obtain separate insurance for your plumbing installation, which can save you money in the long run as often contents insurance would cover you for items you lose in such a flood, but not the actual leak itself.
Even homes with a history of flooding from an external source should be able to easily arrange cover now. Flood Re is a government-backed reinsurance scheme which helps houses previously affected obtain cover. Indeed, properties that have experienced a flood in the past are thought to have seen a 50% drop in the cost of their current cover.
I Should Look to Exaggerate My Claim
Some people feel that when they do need to make a claim, they should look to bump up the damage and financial recompense they require because the insurance company will knock it down again and eventually, it’ll come out about right. This is fraud and although it is a practice some undertake, it is not something you should be doing as a homeowner.
It is estimated that fraudulent claims cost every homeowner an extra £50 in insurance across a year, and there is a risk of getting caught and invalidating your claim. Plus, any activity of this type which is discovered could stop companies from insuring you in the future. Be honest, be transparent and all reputable insurance companies will be the same back to you.
If you found this article helpful, you might also enjoy our piece on letting your property entitled Can I Let My House Without Telling My Lender?
Written by Karen Thompson for aspenwoolf.co.uk