So a disaster has occured, fire. flood, burglary, vandalsim? perhaps. Following the initial natural shock, it is time to find the home insurance policy. Now is not the time to be checking what cover is in place. Let us assume that the policy is a New for Old cover. This means that subject to any excess on the policy, the insurance company will replace the items that have been damaged or stolen without any deduction for wear and tear. Or to put another way if your sofa is 15 years old and you make a valid claim on your policy, the sofa will be replaced as new.
If your policy is on an indemnity only basis, it means that the insurance company are obligated to put you back into the same position as you were before any incident occured. Or to explain in simple terms, a deduction will be made for wear & tear. For example, if your carpet is 15 years old and it has flooded owing to a burst pipe and it is deemed that your carpet has a life of 20 years, a deduction of 75% of any claim will be deducted plus any excess your policy may be subject to. When did you last check what kind of policy your home has cover for?
For more information or you wish to discuss further please contact:
Tel Number: 01708 640855
Authorised and regulated by the Financial Conduct Authority