The pitfalls of cheap home insurance deals

In these straitened economic times, many people are looking for save money by getting cheaper home insurance with more exclusions and limitations than they previously might have been comfortable with. With the popularity of price comparison websites increasing exponentially, the cheapest deals have never been more accessible. Most companies have been forced to cut down even their least comprehensive policies in order to compete with other providers for the coveted top spot in the best-buy tables. However, many of these cheap deals can prove to be a false economy, as they do not cover you for every eventuality. That means that if you happen to lose or damage a valuable asset in a way that is not covered by your insurance policy, you could end up without any compensation – and still have the insurance bill to pay for. So before you commit to buy a policy, make sure you know exactly what it does and doesn’t cover you for.

Many people think that contents insurance will protect their assets in the event of accidental damage, although this is seldom the case. Accidental damage cover is usually a cost option in most insurance policies, and is rarely included at all in the cheapest policies. So if you spill a glass of red wine or a bucket of emulsion paint all over your expensive new carpet, don’t expect the insurer to pay for a new one unless you have specified accidental damage as part of your policy.

It is also quite common for people to assume that your possessions are insured even when you take them out of the home – again this is usually a cost option which rarely comes as standard with cheaper insurance policies. Even if you have taken out additional cover for your personal possessions outside of the home, more valuable items such as digital cameras or laptop computers have to be specified in the policy documents if they are to be covered by the insurance. In addition, many policies place limits of around £1000 to £1500 on the insured value of individual items, regardless of their true value.

Although these types of cover are almost always cost options on home insurance policies, they are often not too expensive, and are well worth getting if you think you require them. Some of the more well-known insurance firms, such as Kwik Fit Insurance, offer extra cover of this type alongside their home insurance plans, usually with a big discount for buying online. Visit the Kwik Fit Insurance site for info and quotes on home insurance.