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Do I have to take out the Buildings Insurance with my Mortgage lender?
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No, although your lender would probably prefer you to. Shop around for the best deals, and choose the company that provides you with the cover you need, at the cheapest price.
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Do I need to buy my Buildings Insurance and Home Contents policies from the same company?
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No, you do not have to insure your contents and buildings with the same insurance company. However, some companies may offer you a discount if you purchase both policies from them. Using the same company may also help to streamline claims handling if you suffer damage to the building and its contents.
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Can I change Insurance Company after I have taken out a policy?
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Yes. There is no reason why you cannot change to a new insurance company if you find one that can provide the same or better cover for cheaper premiums. However, if you do change, you must make sure that your property remains insured throughout the change over period. You should also inform your mortgage lender of any changes to your insurance arrangements.
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My property is currently empty, do I need Buildings Insurance?
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Yes, you must insure your property, even if it is unoccupied. However it can sometimes be slightly more difficult to obtain the cover, and the premiums may be higher for the period the building is empty. You must inform your insurer if the property is not occupied, as failure to do so may invalidate any potential claims.
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I live in an apartment, do I need to take out Buildings Insurance?
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If you own a flat or apartment that is part of a bigger building, you should make sure that the owners of the freehold have adequate Buildings Insurance. You should be aware of what insurance cover exists for the building and that your property is covered. You can always take out extra cover if you are not satisfied with the level currently provided.
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Does my insurance cover me for subsidence?
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A buildings insurance policy will normally cover damage caused to a property by subsidence, heave or landslip. Damage to walls, gates, fences, patios, drives and swimming pools will not usually be covered unless a home is damaged at the same time and by the same cause. The policy should set out what is and what is not covered. However, if any clarification is required, an agent or the insurer will be happy to help.
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Is my property covered for flood damage?
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The majority of household policies provide cover in respect of flood, but you MUST check your policy to make sure.
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Is car insurance compulsory?
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Yes. It is an offence to use a car on public roads without having insurance to cover your legal liabilities if you damage other people's property or injure others. The minimum level of cover is compulsory under the Road Traffic Act.
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How do I reduce the cost of my premiums?
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There are several possible options:
- limit the policy to named drivers
- go for a higher voluntary excess
- drive a lower annual mileage
- install security devices
- keep your vehicle in a garage
- consider Third Party Fire and Theft for older cars
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If I have UK insurance, am I covered to drive abroad?
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Yes. UK vehicle insurance policies automatically extend to the European Union countries and a few others, although you may have to pay an extra premium to extend to fully comprehensive cover. It's best to check with your insurer before you go.
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What should I do if my car is stolen?
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Tell the police immediately and then tell your insurer. You may have to be prepared to wait a while in case your car is recovered. Many stolen cars are found abandoned and can be returned to the owner.
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What if I (or any other insured drivers) have a medical condition?
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Motor insurers need to know about medical conditions likely to affect safe driving, and will ask appropriate questions when you take out or renew your motor insurance. You must answer any questions about medical conditions truthfully, if you fail to do this, you may find that your claim is rejected, especially if you have an accident that is attributable to your medical condition.
However, many insurers adopt the position that, provided any medical condition or other disability has been notified to the appropriate licensing authority (DVLA or DVLNI), and a driving licence has been issued, then they will treat the application no differently from someone without such a condition.
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What is 'excess'?
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Excess is the first amount of any claim that you are required to pay. For example if your policy carries a £200 excess you will need to pay this amount and your car insurance company will pay anything above this amount. You may be able to claim your excess back if you are involved in an accident that was the responsibility of another party.
Voluntary excess is the amount you agree with the company and can influence any premium discounts that you may be offered. Compulsory excess is imposed, usually in the cases of young drivers, and may be the only way a company will agree to insure a driver.
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What is legal cover?
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Legal cover is available as an optional extra with most car insurance policies and provides the expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. For the small additional premium cost this cover provides essential legal advice and valuable peace of mind.
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Doesn't my own household insurance policy offer enough protection for my possessions and cash?
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You need to check that the cover your household policy offers you is adequate, and if you are satisfied, you could decide not to take out the personal possessions and personal money cover. This will allow you discounts on many travel policies.
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What is a policy excess?
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An excess is the first amount you will have to pay in the event of making a claim. For example if your claims settlement figure is £700 and the excess £50 your payment would be £650.
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Why take out an annual policy?
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If you are intending to travel more than once a year, it may be more cost effective to take out an annual policy, which covers you for any number of journeys for the whole year. This also saves you the hassle of arranging cover each time you travel.
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What happens if I need help while on holiday?
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Most travel insurance policies include a 24-hour emergency service and telephone advice line. Take with you a copy of the policy and a note of the telephone number; many insurers issue a wallet card with contact details.
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What happens if my baggage is lost?
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Obtain a Property Irregularity Report (PIR) from the airport authorities straightaway, and pass this with all other appropriate documents to validate your claim upon your return to the UK. An amount can be claimed if your baggage is mislaid beyond a certain period (usually 12 hours) for you to obtain replacement essential toiletries and clothing.
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Will I be insured for business trips?
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If you are travelling on business, check what cover your employer is offering. Many employers arrange for insurance cover equivalent to the level of a standard travel insurance policy whilst also being responsible for insuring any of their own equipment such as laptop computers, which you need to take with you. If your employer does not provide any cover you should ensure you have a policy of your own that provides the appropriate cover. Many standard policies will include business trips, so long as they don't involve hazardous or manual work.
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Will my car be insured if I take it abroad?
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If you are travelling outside the UK with your own car it is important to check what cover your motor insurance covers. UK policies will usually only cover you for the minimum third party level whilst abroad, and so you may wish to consider extending this protection.
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How are Life Insurance premiums calculated?
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The cost of life insurance depends on two factors: how much cover you want and how long you want it for. Your age, sex, occupation, health and smoking habits are also taken into account.
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Why do I have to provide details about my health?
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The Life Assurance company must decide whether or not you are an acceptable risk. If you or any members of your family have had a history of illness, they will want to check on your general state of health before deciding on the premium to charge.
The Life Assurance company will usually be able to offer terms without the need for you to undergo a medical. However, they do have the right to request an examination if they feel it is necessary.
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Can I have a joint policy that covers my partner and myself?
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Yes. These are known as joint life policies, which will pay out if either of you should die during the lifetime of the policy. If the second person is not your spouse then you need to prove that their death would cause you a financial loss.
When either of the parties dies, the sum will be paid out and the Joint policy will be terminated. This means that the second party will be left uninsured, sometimes at an age where they will find difficulty in obtaining replacement cover. Always consider whether 2 single policies will be more appropriate for your needs.
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What happens if I stop paying the premiums?
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In the majority of cases, the Life Assurance cover will lapse. If you want to reinstate the policy at a later date then fresh medical evidence would generally need to be supplied to the Life Assurance Company before cover could be reintroduced.
Unless you have an Endowment Assurance or a Whole of Life Assurance that contains an investment element, then you are unlikely to receive a return of any of the premiums you have paid. Even in the case of Endowments or Whole of Life plans you may not get back all of the money you have paid to the policy.
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Who Can Sell Life Insurance?
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Anybody can sell life insurance for protection purposes. This may include financial advisers, insurance companies or brokers, solicitors or accountants. However, they must be authorised by the Financial Services Authority or have an arrangement with an authorised firm who will take responsibility for their actions.
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What is critical illness insurance?
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This insurance provides a lump sum on diagnosis of a specified critical illness, or if you become totally and permanently disabled during the cover period. The policy has no cash-in value at any time, including if you live until the end of the term.
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How are critical illness premiums calculated?
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The cost of critical illness cover depends on two factors: how much cover you want and how long you want it for. Your age, sex, occupation, health and smoking habits are taken into account.
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When would the policy pay out?
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This insurance provides a lump sum on diagnosis of a critical illness during the cover period and survive for a minimum specified period (usually between 14 and 28 days). It will also pay out if you become totally and permanently disabled within the cover period.
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Which hospitals may I use for my treatment?
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In the UK, hospitals are graded A, B or C, with A being the best and most expensive. Some insurance companies may have their own or preferred hospitals which may not suit you. It is essential to think about the reputation and range of hospitals offered by your potential PMI insurance company.
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What is a 'moratorium' cover?
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If you apply for moratorium cover, you will not be required to provide any medical history. However, the insurance company may not cover any medical condition which has existed in the last 2-5 years. These conditions will only become eligible for cover if you do not have symptoms, or receive treatment, tests, medication, or advice from your GP for that condition for a period of (usually) two years, after your policy has been made effective.
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What is a 'medical history declaration' cover?
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Your insurance provider will require you to give full details of your medical history, possibly with medical reports. It is vital that you provide all the information required to avoid any rejection of future claims. If in doubt, declare it. If you have a medical condition that may recur, the insurance company may cover you, but they will exclude that condition, reviewing the possibility for inclusion into the plan in later years.
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I have pre-existing medical conditions, how does this affect my insurance?
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A pre-existing condition is a medical condition which has been diagnosed and has required medical treatment, or for which you have sought medical advice, or symptoms have occurred before you have applied for the plan. Most health plans will not pay for the treatment of pre-existing conditions.
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What is the difference between a standard and a comprehensive medical plan?
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A standard (or basic) scheme will usually cover in-patient or day care treatment, nursing at home, post hospital treatment, emergency dental and complications of pregnancy. It will not cover out-patient, routine maternity or dental costs.
A comprehensive scheme will cover everything listed in the basic scheme, plus out-patient care and specialists, and occasionally routine dental care and complementary care. Comprehensive plans also often have higher budget limits than a Standard plan.
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What is in-patient coverage?
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In-patient coverage includes any expenses incurred when you go into hospital for private treatment or investigations and stay for one or more nights.
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What is day-patient coverage?
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This is also called Day-care or Day-case, and includes expenses incurred when you go into hospital for private treatment or investigations, but do not need to stay in the hospital overnight.
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What is out-patient coverage?
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Out-patient coverage includes expenses incurred when you receive treatments from a doctor or investigations or consultations that do not require you stay in hospital, either as an in-patient or out-patient.
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Can I take out a policy at any age?
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Policies usually cover you from age 18 up to a specified age of 60 or 65, but a higher age limit may be available.
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How long will I have to wait before policy benefit payments will be made?
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There is usually a waiting period at the start of each claim before benefits are paid. This may be 30, 60 days or longer. Some policies may then pay benefits from that date or backdate to day 1 of the claim.
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How long will the policy keep paying?
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Policies will typically pay out for 12 or 24 months, or until you return to work, if sooner. Permanent Health Insurance (PHI) will usually pay until you reach retirement age.
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I am not a permanent employee, I am employed on a contract basis. Can I apply for a policy?
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Some insurers will you if you have been on a contract for at least 1 year, and had it renewed at least once, or have worked continuously for at least 2 years.
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I am self-employed with my own business. Can I claim if I have to cease trading?
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Some policies may cover you if you have involuntarily ceased trading because you could not find enough work. However, voluntary insolvency would not be covered.
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Can I claim for a medical condition I had before I bought the cover?
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Most pre-existing conditions will be excluded from the policy cover. However, some insurers may cover you if you have been free of symptoms for a certain length of time prior to taking out the insurance.
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Can I claim for pregnancy or childbirth?
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No - not unless there is a serious medical complication which is diagnosed by a recognised obstetric specialist.
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I took out ASU insurance because I knew it was likely that I was going to become unemployed. Can I still claim when this happens?
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No. If you are aware at the start date of the policy of any circumstances that may result in you becoming unemployed, the insurer will not accept your claim. This is whether you had official notice of unemployment or not.
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If I am unemployed and can only get short term temporary work, will I be able to resume claim payments when the temporary work ends, without having to start a new waiting period before the claim is paid?
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Some insurers may suspend your claim whilst you are working and start again when the work ends without having to wait again. The insurer will then add up all the period of payment towards the maximum period for which benefits may be paid.
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What happens if I am claiming for unemployment and I become unwell and unavailable for work - will I have to go through another waiting period?
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Not usually, many insurers allow you to switch from unemployment benefit to sickness benefit without having to go through another waiting period.
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How do I make claim on my extended warranty?
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Refer to the claims procedures in your policy before you arrange repairs. These will give you full details of how to claim and what to do. Some companies may pay the repairer direct, whilst other plans may require you to pay for the repair yourself, and send the receipt to the insurer for reimbursement.
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What types of extended warranties are available?
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Breakdown or warranty policies are available for a wide range of items. Policies include household equipment, vehicle, office machinery, boats, fitted kitchens and household furniture. The basic principles of cover are all very similar, but the individual policies will have different specific conditions.
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Are extended warranties insurance?
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Some warranties are not insurance contracts, and they will usually be called service contracts, or something similar. With service contracts, your payments are put into a pool that is used to pay claims. In many cases this money is protected, so that if the retailer goes bankrupt, your claims would still be met. However, this is not always the case, so when you buy a plan, always check whether you would be covered in the case of insolvency.
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