Nobody likes to consider the ramifications of a worse scenario, let alone the financial consequence. However, did you know that if a major storm (of the likes we experienced in the UK in the late 1980s) hit the UK today?
Each year, when our renewal notices are mailed to our home contents insurance and / or home building insurance, most of us automatically sign the form and send it to the insurance company. After all, we already know how much the premiums are paying. be. Great financial failure, and here are 4 reasons why:
Did you buy something new in the last year?
If you bought something new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent to the insurance company. Similarly, if you sold something of value during the last year and you have not informed the insurance company, then you are paying the home contents insurance for something that you no longer own. Either way, you are not paying the correct amount of insurance premiums.
Did the costs remain static?
If you have home content insurance, then you are insuring your personal property for the replacement cost of purchasing the same new thing. On the other hand, part of the building insurance of your home must cover the cost of labor and materials. Now ask yourself, would the cost of replacing the image hanging in your living room be the same today as last year? If the answer is that it would cost you more, bad luck, they will only pay you what you said it would cost to replace it!
The same can be said for your kindly builder, would you charge the same for one hour of your time and for your materials today as you would have done last year? If the answer here is no, then you should expect to pay the difference.
Did the value of your home remain accurate?
Similarly to the above, with the insurance of buildings in your home, you should ask yourself if the value of your home remained the same this year or not. This question should be asked even if you did not do any work at home, like building an extension, which would naturally add value to your home automatically.
Is your house safer today?
Here the question is: have you done anything in your home during the past year that would mean that your home would be considered safer today than last year? For example, did you add any blockages to your doors or windows? If so, there is a strong possibility that the home insurance premium will be reduced, since home security is an important consideration when evaluating your premium (along with the crime rate in your neighborhood, so that you may also want to check and see if this has gone up or down as well).
Keep in mind that time does not stop for anyone. As such, you should read the insurance renewal notices of the contents of your home and / or the insurance renewal of the housing buildings with great care to ensure that they reflect, as accurately as possible, your current life and not his life from a year ago.