While the majority of insurance policies are taken out correctly, there are a number of circumstances or exceptions whereby an insurer may not be able to make a pay-out. We've put together a series of blogs looking at the most common issues that property owners can overlook , particularly in relation to holiday home insurance.
In the event of a claim, some insurers discover that the property and/or its contents have been accidentally or deliberately under-valued, with a view to reducing the premium. This may well result in a lower pay out than expected – or a non-pay-out.
Remember that the sum a property is insured for should amount to what it would cost to rebuild the property from scratch. This value will differ from the market value, which should not be used to set insurance. A qualified quantity surveyor will provide an accurate rebuild value.
If you own a property abroad you may well be familiar with or at least have knowledge of community insurance, as many apartments are covered by it. This insurance generally only covers communal areas such as entrances, walkways, paths, pools etc.; it tends not to cover contents or fixtures and fittings. To ensure you are covered for such items, it may be advisable to take out 'all-risks' insurance.
If you read your terms and conditions fully before you take out your policy you should be able to avoid any problems with your insurance policy.
If you own a property in the UK, then look at UK holiday property insurance