WARNING: check your sums insured – this could happen
Insurance is a rip-off, a scam, a con. Such comments are common in consumer forums, usually by people who have bought the cheapest insurance, haven’t read the policy details or have the opinion that insurance should cover ‘every eventuality’ – I’m afraid it doesn’t.
Insurance is a highly regulated industry and fortunately, the consumer has the ombudsman to turn to in the event of ‘rip-off’ disputes.
According to the AA, the average cost of building insurance cover is £181, for contents cover the average is £109 and the premium for a combined policy is £260.
In perspective, insurance provides good value considering the flood, fire and storm risks that properties face and the cost of these claims.
The unforeseen does happen
We take out insurance to protect against the unforeseen. Regrettably, the unforeseen does happen with devastating consequences.
Five houses demolished after the ground beneath them disappeared when raging torrents of water caused a massive landslide. Source
Block of flats demolished after the building’s foundations were washed away during flash floods. Source
Every year around 50 thatched cottages burn down, mostly because of chimney fires. Source
Check your sums insured
When the unexpected happens, you will rely on your insurance to compensate for loss and damage which could be hundreds of thousands of pounds.
But if you are underinsured, the financial consequences can be significant.
Resources to ensure your sums insured are adequate;
Is it worth taking the risk of being underinsured or having inadequate cover? As you can see from the images above the unexpected can happen, and when it does, you will be relying on your insurance – check your cover.