Homeowners sacrificing their Home Insurance

The saying ‘the home is where the heart is’ has never been more true than today. With an economic climate forcing many homeowners to cut back on even the basic of necessities it is very easy for some to either forget or even choose to cut back on some of the more important aspects of home ownership.

Research by the housing and homeless charity, Shelter has shown that over five million households in the UK have no home insurance at all with 42 per cent saying they can not afford it anymore.

More worryingly, those who have opted for a cheaper form of home insurance and believe to be covered are being left out to dry in the event of a claim as the research also showed that on average they are under-insured by £4,650. “At a time when people are feeling the pinch, it is easy to assume a standard home insurance policy will be enough for you – however this could be a mistake.

Knowing the difference between ‘frills’ and ‘no frills’ policies is crucial; many standard policies will provide a basic level of cover, which in many cases might not safeguard your home and possessions to the necessary extent.” said Julie Owens head of the moneysupermarket home insurance team.

How to make a Home Insurance claim

Unfortunately at some point in our lives disaster will strike and we will be forced to make a claim with our home insurance provider. Whether the cause was an ‘Act of God’, extreme weather conditions or a break-in, these are just some of the problems that affect homeowners around the world.

In the event of a disaster an insurance claim will begin with a call to your insurer. Inform them of exactly what has happened and they will then send out a claims form. Depending on the nature of the claim, you may be required to back up the claim with evidence, for example if your home was burgled a police incident report or number will be required.

When sending the claim form back with any accompanying evidence it may be worthwhile sending a covering letter to back up your claim. To start off the letter you should include your home insurance policy number at the very beginning of the letter. Following this you should then explain in detail all the relevant facts which led up to the claim.

If applicable, state the amount you are looking to claim for and what action you are looking for the insurance company to take and by which date. You may need to include quotes you have received for repairs, warranties etc to help back up your claim.

Finally close the letter by thanking the recipient for their co-operation and state the date by which you would like to hear from them.

Getting your claim in order will ensure that it is dealt with effectively and in a timely manor.

Here is an example of a covering letter you could send.

<Date>
Dear Sir/Madam,

Policy number: XXX / XXX / XXX / XX

Further to our telephone conversation of <date of call>, I have enclosed the completed claim form as requested with regard to my home insurance claim.

I am now writing to recover the cost of <detail of what happened>

As you requested, please find attached <any supporting evidence (invoices, police report etc)>
Therefore, in accordance with the terms and conditions of my insurance policy, I would be grateful if you could send me a cheque for <claim amount> to reach me by <date>

Please do not hesitate to contact me if you require any additional information.

Yours sincerely
<Your name and signature>