All insurance policies, irrespective of their nature, contain terms and conditions.  These are sometimes, perhaps unfairly, referred to as ‘the small print’ – with the implication being that the insurer is somehow trying to sneak something past you on your home insurance policy.

This is certainly a misperception.

In fact, these conditions exist to help clarify what cover the policy provides for your holiday home and therefore, they are intended to help you understand the nature of the insurance you are purchasing.

It is, therefore, imperative that you fully understand what these conditions mean – and any obligations you may have under the terms of your policy (such as keeping the property well maintained, notifying the insurer if you are undergoing any structural renovations or changing the usage). These conditions may materially affect your ability to make a successful claim.

You should pay particular attention to terms relating to loss or damage of your contents, for example, some policies may state:

  • that you need to provide a proof of purchase relating to contents where you are making a claim for loss or damage;
  • that there are article limits (the maximum the insurer will pay out for a specific item).

Proof of purchase

In the case of proof of purchase, it is not unreasonable for an insurer to ask to see some evidence that you actually own (or owned) the object you are claiming for. It may also be perfectly logical for them to ask to see how much you originally paid for it.

Of course, insurers typically recognise that it may be practically difficult to retain every single receipt for every single item you may have purchased over a period of many years. That is why they may accept things such as photographs, earlier inventories and credit card bills, as such evidence.

Make sure that you periodically:

  • review your contents and their value (to check that the sum insured on your policy is still correct);
  • update an inventory of all your belongings, from Cd’s to gadgets, garden furniture; and
  • take photos or video footage of more ‘valuable’ items (preferably storing the photos somewhere other than your holiday home).

These steps may also help remind you what items you had (but forgot about) should you need to make a claim.

Also, making a concerted effort to keep receipts for larger value items somewhere safe can give you the peace of mind that you have everything an insurer may need in the event of a claim.

A typical contents insurance for second homes policy should highlight what, if any, such proof you will need to provide to support a claim.

Article limits

Some people assume that all their contents are covered, no matter what their value. However, most insurers will impose limits (i.e. an upper amount that you can claim for a particular item). For example, with our insurance for holiday homes policy, we cover property in the open but within the premises subject to a £2,000 limit.

Do check your policy terms and conditions for verification of this.

In summary; many policyholders fail to read the terms of a policy when taking insurance out – and then dispute the value of a policy. It’s essential that you check what is, and more importantly, isn’t covered. Check what evidence you will have to provide for items involved in a claim and any article limits.

Similar Posts:

Share