Is It Worth Risking All Of It For Affordable Insurance?



Picture the scene, you get up early one morning using the sound with the wind blowing and rainfall bashing against you window. You ease yourself too much of bed, walk down your stairs and are faced with your house under 6 feet of flood water. And so begins the long and distressing procedure for recovering from flood damage. And imagine your shock and horror when you call your insurance carrier only to find out you don’t have the coverage you thought as well as your claim is rejected!


This horrific scenario whilst uncommon could well be on the increase as home and business owners seek the cheapest possible insurance fees without first looking at the cover they provide.


Mark Burdett, Marketing Manager of Gateshead based Northern Counties Insurance Brokers had this to state, “The recent flooding many areas of the UK has seen is likely to have an adverse affect on insurance premiums with insurance companies like Norwich Union already announcing price increases. Among the problems with increased insurance costs is that people will naturally look to cut costs by doing your research for the best deal. The possibility downside to this really is that they then select the cheapest premium quoted without actually considering the cover it provides. And unfortunately this could well lead to cover not in place which may only emerged when a loss occurs and they find out they are not covered.”


So with flood claims seemingly on the increase for many home and office owners, Mark suggests people purchasing to buy home or business insurance make certain they:


1. Get the cover actually required. For homeowners this could mean accidental damage whilst for business owners’ and business insurance business interruption is often more beneficial. Many of these types of cover are often sold as optional extras so don’t you should be tempted using the lowest premium without understanding what it does (and perhaps more importantly) what it really doesn’t cover you for.


2. Understand what excess they’re going to have to pay in case of a loss occurring. One way insurance companies can quote lower premiums is actually increasing policy excesses. Make sure your policy comes with an excess you can pay for.


3. Require advice and help if in any doubt. Insurance Brokers are a good source for this as they can use their experience to locate you the right cover, on the right price whilst ensuring you, your home and your business are safe.


As a victim of flood damage before himself, Mark summed the risks involved in buying the cheapest insurance possible, “Many people see insurance like a grudge purchase and one which only creates a benefit whenever a claim needs to be made. I used to be lucky enough to have the right protection plans in place when my home was flooded and I would urge anyone looking to cut costs on their insurance to be sure they know the possibility consequences of buying the cheapest policy.”

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