The world of insurance can seem complicated at times, and it’s understandably easy to get confused with the full range of cover available without guided help. Once you’ve obtained the right policy, there are a number of common but avoidable mistakes that could lead to a claim being unsuccessful. Here are key examples that you should bear in mind to safeguard your personal and commercial interests.
Home insurance
One of the worst mistakes a homeowner can make happens before an incident even occurs. Failing to read your insurance policy carefully can cause serious problems and leave you vulnerable. Where you’re unclear of the policy limitations and specifications, we’d always advise speaking to an experienced advisor or broker. Some homeowners automatically presume their property is covered by weather damages when only certain damages may be eligible for a claim. Likewise, one of the biggest errors in judgement we see is failing to lock all windows and doors when exiting the property, or failing to use a home alarm system when it has been included within the initial insurance quote and cover. Opportunistic burglaries can happen at any time, so even if you’re going somewhere close by, you need to make sure your home is secure. Another area that can confusion is with landlords and their tenants when it comes to buildings and contents cover, leading to no cover being organised at all.
Business insurance
A common issue business owners can run into is all to do with their business description not being accurate enough. Many business owners ignore the small details and refer to themselves as a ‘marketing company’ or a ‘trades company’, and skip on details that can cause major problems when trying to make a claim. Missing out key information in your business description can lead to all sorts of problems. Lack of detail often means an insurer can’t fully understand your business and can make the claim process difficult. Estimations and guesswork also have a huge impact on the success of any future claim.
Six out of ten (62%) cyber insurance policyholders have reported that their premiums are based on averages and other unknown factors, rather than an accurate analysis of their own needs. This leaves them vulnerable should a cybercrime attack actually happen.
Car or fleet insurance
Consumers may decide to go with the insurance provider that is the cheapest to save money, yet this often ends up costing you more in the long run. According to a recent survey, British motorists are paying a ‘loyalty tax’ to their insurer for automatically renewing their insurance, which wouldn’t be there if the motorist had switched provider. This mistake is costing each driver roughly £277 and a collective £2.1 billion for all British drivers combined. Not updating policies also trips up policyholders, including for changes in address, employment or factors related to the named driver(s).
How we can help
Struggling to understand if your insurance plans are right for you? Speak to us on 0800 542 0672 or email us at sales@neilwillies.co.uk and get the insurance clarity you’re looking for.