YOUR car insurance will cover the cost of repairs if you have a prang on the road and your home policy will kick in if your pipes burst or you accidentally spill red wine all over your cream sofa.
But whether you’re insuring your car or your home, your pet or even your holiday, no two insurance policies are the same.
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It’s important to read the small print of an insurer’s policy – whether it’s to protect your car, home or pet
With summer around the corner, have you thought about covering your garden under your home insurance?
Differences in policy wordings, make a big difference if you need to make a claim.
Comparing courtesy car cover
A good example is with courtesy car cover on motor insurance policies.
Access to a replacement car could be invaluable if yours is out of action – especially if you rely on your car to get to work every day, or to ferry the kids to and from school.
Over 90% of fully comprehensive policies will include cover for a courtesy car as standard, 5% as an optional “add-on”, while 2% do not include it at all.
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But even when a courtesy car is included as standard, there could be significant differences in the cover provided.
For example, courtesy cars could be “subject to availability” – so if the garage that’s fixing your car doesn’t have one to spare, you could be left without transport right when you need it.
You might also discover, too late, that you’re only able to get a courtesy car if yours is being repaired. That could mean you’re stuck if your car is a “write-off” or it’s been stolen.
Are your possessions covered in the garden?
As summer approaches and we all start to spend a bit more time in the garden, it’s also important to make sure you don’t make bold assumptions about your home contents cover.
Our gardens can be rich-pickings for thieves, especially when the sun’s out.
From garden furniture to outdoor kitchens, even fancy ornamental pots and expensive shrubs, cover levels and restrictions can vary significantly between one policy and another.
If you have outbuildings like a shed, summer house or garden room, it’s important to understand the cover for their contents too.
Are your tools, TV, sound system or home office equipment properly covered if there’s a break in?
Some policies have lower claim limits and more restrictions than others.
There may also be certain security requirements that you will need to meet in order to make a claim for theft from a garden.
Your tools, for example, might only be covered if they were stolen from a locked shed and there were signs of forced entry.
Most policies (90%) will include cover for items that have been stolen from a locked outbuilding but cover limits vary hugely from just £250 up to the full contents sum assured.
And, if an outbuilding or shed isn’t locked, a third of products will not pay for any items that were stolen.
Surprise price hikes for ageing pets
If you’ve not studied your pet insurance policy recently, you might be surprised when trips to the vet become even more painful as your four-legged friends get older.
Pet insurance provides the peace of mind that your vet bills will be covered if your fur baby becomes ill or is injured.
But as many as three-quarters of policies will charge a compulsory “co-insurance excess” when pets reach certain age milestones (typically eight for dogs and 10 for cats).
This could see pet owners paying up to 20% towards the cost of the claim, in addition to their existing excess payment.
How to avoid an ‘insurance blind spot’
It’s all too easy to have an “insurance blind spot” and make assumptions about what will and won’t be covered by your policy.
Unfortunately, it’s usually only when you come to make a claim that you discover the shortcomings of the policy you have paid for.
But you can get a clearer view of any insurance policy that you’re considering, by taking advantage of the Defaqto Star Ratings system.
Defaqto Star Ratings are based on expert and independent analysis of product features and benefits.
Its one- to five-star ratings give you an indication of just how comprehensive an insurance policy is – before you buy it.
A one-star product will be basic and only offer a few features or benefits.
Three-star policies provide “average cover”, while top-rated five-star policies are excellent with a comprehensive range of features and benefits.
A five-star policy is not necessarily always needed. We all have different needs and some people may not require the additional or top-level benefits provided by some comprehensive policies.
But, by checking the Star Rating of a product and always reading the policy terms carefully, it will be easier to make meaningful and confident comparisons between policies, before you make your choice.
To find out more about how comprehensive a policy is and what each of the Star Ratings mean, follow the stars at Defaqto.com.
