Even if you can’t put a price on the sentimental value of your treasured possessions you may get a certain level of security with a high value contents insurance policy to at least cover their monetary value. With values possibly exceeding the limits of a standard home insurance policy though, an insurance broker can help ensure you really have the cover you need.
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Differing limits on insurance cover available
Standard home insurance can be purchased from price comparison websites and online insurance companies, but consumers are often restricted in terms of choice. The focus for many buying through these routes is simply to get the cheapest policy, but that may not be the best policy.
The limits of cover available on many standard policies can mean that high value contents aren’t covered as they exceed these limits. Some may unwisely choose to leave themselves underinsured, undervaluing items to bring them within the limits.
Complications can arise too if for example belongings are perhaps spread across a second home or in a shed or if there’s unusually expensive garden equipment. The full contents may not be sufficiently covered by a general policy.
Equally, with a standard policy, other items such as boats and caravans will usually need to be insured separately, even though they may be considered part of the homeowners belongings.
An insurance broker can tailor insurance policies to meet the individual needs of their clients, and grouping items together into a single agreement often results in a lower overall premium.
Assessing the value of contents
Although most homeowners will be able to place accurate valuations on their personal property, many actually cannot and end up thinking their contents are worth considerably less than they actually are.
An insurance broker can help you fully assess the value of your possessions, bringing in a professional valuer if need be.
It’s perhaps a good analogy to draw comparisons with the world of car insurance; if you own a Porsche, it would be foolish to insure it to the same value as a Robin Reliant.
If you have high value contents, brokers will be able to suggest areas of coverage that you might need which may not be available from standard policies – you really do need to find the best possible policy and not just settle for a one-size-fits-all solution. If an inferior policy is purchased, you may find that it doesn’t fit your specific needs when a claim is made.
Personal, professional Service
Insurance brokers are regulated by the Financial Services Authority, and are obliged to act in the best interests of their customers. When coverage is purchased through an insurance broker, consumers are less likely to end up with an insurance policy that fails to cover their assets sufficiently.
Remember it’s a two-way process though and that you have a duty to disclose all relevant information when you buy insurance and this applies equally whether you buy a policy direct or via a broker – if you don’t provide all relevant details and facts you may find the policy invalidated should this be discovered for example when you need to make a claim.
Above all, if you buy the cover through an insurance broker, you will invariably get a greater depth of first-hand experience and this can be instrumental in choosing the right deal, developing a fuller insight into the range of products available and opting for a cost-effective package that combines optimised coverage with an affordable premium.