Home insurance isn’t the most exciting of topics, but it’s an important one. And with winter drawing in, bringing darker evenings, home insurance claims are expected to peak due to adverse weather and an increase in the number of burglaries. As a result, ensuring you have adequate home insurance in place is even more important! Here are some of the biggest home insurance blunders we’re all prone to making:
Not having insurance in the first place
The first mistake is not to have a home insurance policy in the first place. Recent research has revealed that over a fifth of households in the UK have no insurance protections in place. This is partly because people (42%) feel they can’t afford to take out a policy. We can understand that. But more than a fifth of people haven’t got any just because they don’t think home insurance is important and 18% don’t believe they have anything worth insuring. Meanwhile, 15% don’t have any insurance simply because it’s not a legal requirement. This is pretty worrying stuff. After all, if the worst were to happen and your home were to catch fire, you might be surprised at just how much it would cost you to replace all of your belongings. In fact, it would probably be considerably more expensive than simply paying for an insurance policy in the first place.
Underinsuring your possessions
Even if you do have home insurance, many of us fail to have enough insurance. In fact, on average, we’re underinsured by a whopping £4,650*! However, if you don’t have enough insurance in place, and you did need to claim, your insurer may assess your property and only pay out in proportion to what you’re covered for. Of course, it can be really difficult to work out exactly how much all of your possessions are worth. After all, it’s easy to think a wardrobe of clothes is far less valuable than it actually is, and it’s easy to exclude items you have in the garden or shed. And once you’ve worked out how much your belongings are worth, make sure you regularly check that this is still the case.
Alternatively, if you really want to ensure you’re fully covered, opt for an insurer that offers unlimited cover as you won’t have to specify a limit to the value of your home contents.
Thinking the cheapest option is best
All of us want to keep our costs to a minimum. However, opting for the cheapest home insurance policy isn’t necessarily the best solution. Home insurers are increasingly offering certain aspects of cover as optional extras rather than as standard features. So if you’re choosing the cheapest policy, there’s a good chance you might not be covered for everything you need to be. For example 82% of policies include accidental damage as an optional extra, while 11% include plants in the garden as an optional extra. So, if you want to ensure you’re fully covered, you may need to pay that little bit extra. And make sure you read the terms and conditions of the policy carefully so you know exactly what you’re covered for.
What is public liability insurance?
Public liability insurance covers you if a customer or member of the public makes a claim against your business relating to injury or property damage. It is there in case you find yourself on the end of a compensation claim. If someone is injured, or their property is damaged, and you are found legally liable for it, public liability provides the cover your business needs to resolve a claim.
You may need it even if you work from home – if a client or delivery person falls down the stairs due to a loose handrail, for example.
What does it cover?
A Business Public Liability policy insures you for a range of accidents. It could be something very serious, like the home owner getting hurt by tripping over your tools while you’re building their conservatory, or something as simple as spilling coffee on a client laptop during a meeting. It’s worth noting that some businesses – if you work in the public sector for example – will often be required to take out a minimum of £5 million worth of cover to be considered for a contract.
You can also choose to add elements like employers’ liability insurance and cover for subcontractors, tools and equipment.
Who needs public liability insurance?
Every business could face a compensation claim, so every business could benefit from public liability cover. Even if you run a small business, or you’re a sole trader working from home, going without public liability could have a significant impact on your business’ financial health. For example, if you’re a retailer exhibiting at an event and you damage the floor when dragging your clothes rail across the room, or you’re a caterer and you accidentally pour hot soup on a member of the public, public liability would cover you.
Without public liability insurance, settling a claim could cost you thousands – and it would come directly from your business. So, it’s important to make sure that you’re covered.
Why do I need public liability cover for my business?
When accidents happen, you want to put right what’s gone wrong as quickly as possible. That’s why public liability cover is so important. It helps you keep your business running without the extra worry of a compensation claim or legal fees.
Is it a legal requirement?
It’s not a legal requirement to take out public liability insurance. However, considering the financial damage a claim could do to your business, it really should be seen as an essential business expense.
