Insurance isn’t something any of us like buying – not only can it be a hassle finding the right level of cover, it’s a product we put hundreds of pounds into yet can only ever use when something goes wrong.
And once you’ve taken out cover you then face the prospect of trawling through your documents to make sure everything is in place and you have all the cover you need. So to make this bit a little easier, here are the things you’ll need to consider when examining your policy.
This is usually the first page of the policy package and will outline who’s insured and for how long the policy lasts – this is usually a calendar year. It should also outline what’s insured, what coverage it provides and any policy limits or exclusions. There are a lot of insurance companies – such as MasterCover Insurance – that provide many different types of insurance so it’s important to understand exactly what you’re getting.
This is a kind of glossary of terms to help make navigating your home or motor policy that bit easier and words with definitions may be capped up or appear in bold to let you know you can look them up if you don’t already know them.
This describes in more detail what is insured and the type of cover that’s been taken out. So, if you take out third party fire and theft (TPFT) car insurance, this will describe how you insurer will pay out to repair or replace your vehicle if it is damaged as a result of theft or fire.
This describes the limitations on your policy and outline circumstances under which your insurer may not pay out. So, that TPFT policy you took out on your car won’t pay out for repairs or replacement of your vehicle if you were at fault in an accident, and your claim may be cancelled if it’s been damaged by thieves but you weren’t taking proper precautions to make sure it wasn’t stolen, say you left it unlocked.
Limits and special limits
This section explains how much your insurer will pay for particular types of loss or damage to property. So while your home contents cover may cover you for damage to or loss of particular items, there may be limits on the amount that is paid out, so this could be no more than £1,000 on a particular item of jewellery.
This section should tell you what the insurers responsibilities are and what your responsibilities are – like not leaving your car unlocked! It’ll also include information on payment plans and how to cancel the policy.
How to make a claim
This section outlines what to do in the event of an accident and how to make a claim – including any emergency contact numbers.
That’s pretty much the size of it – if you notice any mistakes on your policy documents or you’re unsure or unhappy about any of the cover provided, make sure you speak to your insurer as soon as possible.
And don’t sign and return any documents until you have fully checked the details are correct, if something is incorrect this could invalidate your policy meaning you won’t be covered if you have to make a claim.