All covered up

New entrants recently into the home & thatch household insurance market are often priced cheaply to entice new business. But behind the lower premiums and cuddly toys can be a lack of basic needs such as home legal assistance and home emergency. Charlotte Clayton, Schemes Account Handler at County, has conducted some research on the issue.

Recently we undertook a comparison of what our competitiors offer. This is normally a once in two to three year exercise to get some assessment of what the current insurance market offers clients.

While many insurers and brokers offered us great deals for our household insurance, only 50% of them talked about additional covers they could provide for, such as Home Legal Expenses and Home Emergency.

Often these bundled products are included in both 5* Defaqto and MoneyFacts rated products and can be missing from other policies.

While no one intends to be make too many claims on my home legal expenses, having the peace of mind you can talk to a trained legal advisor about a number of issues and to have access to specialist support and counselling services gives can give policy holders great confidence.

Another additional product is Home Emergency. We’re not plumbing or electricity experts and if anything went wrong in our houses we’re not sure our partners and spouses would be much use either! For the few pence a week extra clients can be reassured should something happen then they can rely on their insurer in a number of circumstances.

No one likes to spend money on insurance but often these additional benefits mean that you get more coverage for your premium.

The key things welearnt from getting quotes are:

  • Always ask about the additional covers and benefits available and if they can be included within the quote
  • Make sure when you compare quotes they’re on a like for like basis. If they’re not then judge them according to their cover provision
  • If the premium seems a lot lower than what you’ve been quoted by others, really question it – does it meet my needs, is it like for like and is it a one – time deal to entice me in. You’re better off sticking with a consistent insurer that doesn’t seek price spikes.