Home insurance, also known as buildings and contents cover, gives homeowners financial protection for their home and belongings in case of unexpected events like fire and flood. Having the right policy can offer peace of mind, knowing that your property will be protected in any worst-case scenarios.
There are almost 35 million home insurance policies across the UK, over half of which were bought online. In this guide we will explore what home insurance covers as well as common reasons for rejected claims.
What is Home Insurance?
Home insurance encompasses two main types of coverage: buildings insurance and contents insurance. Buildings insurance protects the physical structure of your home, including permanent fixtures like a fitted kitchen. Contents insurance covers items within your home such as furniture, appliances, clothing, and other personal belongings.
What Isn’t Covered by Home Insurance?
Wear and Tear
Home insurance primarily covers sudden and unexpected damage caused by events like storms, fires, or thefts. It does not include damages resulting from gradual wear and tear. For example, if a roof leak is due to the natural deterioration of the roof over time, it will not be covered by insurance.
Old Appliance Failures
Claims related to electrical appliances are often rejected if the damage occurs due to the appliances reaching the end of their lifespan. From white goods, electricals or getting a new boiler, these appliances might break down without apparent reasons, they are generally not covered unless the damage was a result of a one-off accident.
What Is Usually Covered by Home Insurance?
Dwelling Coverage
Dwelling coverage provides protection for the physical structure of your home, including the walls, roof, floors, built-in appliances, and any attached structures such as a garage or deck. It protects you in the event of covered perils like fire, lightning, windstorm, or vandalism.
Other Structures Coverage
This part of your home insurance policy extends protection to structures on your property that are not attached to your main dwelling. Examples include a detached garage, tool shed, or fence.
Liability Coverage
Liability coverage protects you financially if someone is injured on your property or if you accidentally cause property damage to others. It can cover medical expenses, legal fees, and settlements up to the policy limit. It is often offered as an add-on.
Additional Living Expenses (ALE) Coverage
If your home becomes uninhabitable due to a covered peril, ALE coverage can help with additional living expenses. This may include temporary housing costs, food expenses, and other necessary living expenses while your home is being repaired or rebuilt.
Loss of Use Coverage
Loss of use coverage can help with expenses if you need to temporarily relocate due to covered damage to your home. It can cover the costs of accommodations, meals, and other essentials while your home is being restored.
Why Can My Home Insurance Claim Get Rejected?
Insufficient Cover
Accidental damage is not included in many home insurance packages. This coverage would help with DIY incidents, damage caused by children, spillages, stains, and damage caused by pets. If these concerns are important to you, include accidental damage cover in your insurance package.
Claim Value vs. Excess Amount
Insurance claims may also be rejected if the claimed value is lower than the excess amount specified in the policy. The excess is the initial amount policyholders must pay toward a claim before the insurance coverage kicks in.
How Home Insurance Claims are Evaluated
Home insurance companies have trained claims staff and a network of building specialist teams, technical experts, and suppliers to thoroughly assess each claim. When reporting a claim (known as the ‘First Notice of Loss’), you must provide a comprehensive description of the damage and its impact.
Sometimes, determining the cause of a claim may be challenging (for example if you have a leaky roof where the root cause might not be immediately apparent). In such situations, insurers may work with claimants to conduct further investigations through qualified specialists. The claimant’s supplier report, if available, will also be considered as part of the validation process