Additional Benefits
Although many home insurance policies will automatically include the following additional benefits, you may be expected to pay a higher premium in exchange for one or more of the following types of extra cover.
Accidental Damage
Some insurers include 'accidental damage' in their basic home insurance policy. Accidental damage is damage to your property or contents as a result of an unintentional action. This means that the following may be covered:
- accidental breakage of windows, ceramic hobs and bathroom suites
- accidental damage to underground drainage pipes, cables or water tanks
In some cases, you may be required to pay an additional charge for accidental damage cover. Insurers define accidental damage differently, so you should check your policy documentation if you are unsure about what is covered. If accidental damage is already included in their basic insurance package, you will often find that paying a small amount more will result in a far greater level of protection. For instance, you could be covered for accidents such as putting your foot through a ceiling after falling over in the loft, or breaking your television screen.
There are usually exclusions which apply to accidental damage cover. For example, you are not usually covered if the damage is caused by a paying guest or tenant, your pet, or faulty design, workmanship or materials. In addition, items which are very likely to be damaged whilst in use, such as clothing, are also usually excluded.
Special Occasion Cover
Some insurers include 'special occasions cover', which increases the amount of cover you receive by ten or twenty percent during a seasonal or family event, such as Christmas, the birth of a child, or a family wedding. Essentially, this provides additional protection during periods in which you are likely to have more items of value within your home, such as Christmas gifts or presents for a new baby. You may be required to inform your insurance provider if you know that there will be many items of value in your property for a set period of time.
High Value Possessions
Most insurers will insist that any items over a certain value are separately listed on your home insurance policy. Typically, you must inform them of any item you wish to insure that is worth £1,500 or more. Anything worth less than this is known as an unspecified item and does not need to be listed on the policy. However, if you wish to insure expensive jewellery, computers, or MP3 players for example, you need to tell your insurer their make, model, type and exact value.
High value possession cover can usually be extended to protect your possessions if you take them away from your home. This means that if your laptop is accidentally damaged or stolen when it is outside the property, you could still make a claim.
Freezer Food
Many comprehensive home insurance policies will cover the food in your fridge and freezer against loss resulting from a fall or rise in temperature, perhaps due to a faulty appliance or electrical fault.
Money and Credit Cards
Even basic policies will usually include a certain level of cover for cash and credit cards. Most insurers will provide cover if your credit card is lost or stolen and then used fraudulently. Although credit card companies cannot charge you for purchases or withdrawals made fraudulently on your card, they can refuse to cover you if your own negligence led to the loss. In this case, your home insurance would provide a greater level of protection. Typically there is a limit of £250 for cash and £500 for your credit card. For a small increase in your premium you can usually increase these limits to provide more protection.
Bicycles
Bicycles (often referred to as 'Pedal Cycles' in policy documentation) are typically covered separately in your home insurance. Usually, your bicycle is covered anywhere within the UK for loss or damage as a result of an accident or theft. Exclusions will apply however, such as theft as a result of your own negligence.
Legal Expense Cover
Your home insurance policy may also cover you against certain legal costs. If a member of your household is involved in a legal dispute, they may have to pay legal costs such as solicitor's fees to defend themselves in court. Some insurers provide up £50,000 or £100,000 worth of cover for disputes or towards the cost of obtaining advice related to a personal injury, contract dispute, consumer protection, property boundary disputes, employment and tax. Usually, free professional advice can be obtained by calling your insurance provider's dedicated legal helpline. If the dispute began before you took out the insurance, it will not be covered. In addition, most insurers will only provide this protection if you have a reasonable chance of winning your case.
Emergency Home Assistance Cover
This covers you against costs incurred as a result of an emergency that renders your home insecure or unsafe, such as a burst water pipe or a boiler breakdown. Your insurance provider will give you details of an emergency helpline which you can call in such cases. Even if the damage or loss is not covered by your policy, you may still be entitled to a small claim from the 'emergency assistance' protection. For example, this extra cover could pay up to two hundred pounds for a plumber to visit your home and inspect the damage and / or make emergency, temporary repairs, but the insurance would not cover the cost of the repair itself.
