Body & Soul0 min ago
Over Sold Cover On Buildings And Contents Insurance
I have been looking at my sister-in-laws building insurance she took out with her mortgage. she is covered for £1,000,000 for buildings and £50,000 for contents. The market value of the house is approx £200k and averagly furnished. Is there a case for being mis-sold cover. I am trying to work out when the policy was taken out, I suspect 2007 when she changed her mortgage.
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Some companies now just use a maximum value for both buildings and contents based on the type of house and district, rather than you having to specify a value. I suspect it saves on arguments when a claim is made; many people don't realise that if you under-insure your house you don't get the full amount if you make a claim. In other words, if your contents are worth £50,000 but you have only got them insured for £25,000 and you have a small fire which wrecks your £1000 carpet, they will only give you £500.
Having said that, the cover on your sister-in-law's house does look excessive. Who took out the cover and why did they agree to that value?
Some companies now just use a maximum value for both buildings and contents based on the type of house and district, rather than you having to specify a value. I suspect it saves on arguments when a claim is made; many people don't realise that if you under-insure your house you don't get the full amount if you make a claim. In other words, if your contents are worth £50,000 but you have only got them insured for £25,000 and you have a small fire which wrecks your £1000 carpet, they will only give you £500.
Having said that, the cover on your sister-in-law's house does look excessive. Who took out the cover and why did they agree to that value?
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