Shene (Insurance) Limited

The damage that fire can cause to a property has been highlighted by the news of the Clandon Park House fire last week. Yet this is not an isolated case, fire can devastate any property and change lives.

If there was a fire at my home, I would turn to my insurance company.  What would I expect?  A helping hand.  Now that we haven’t got a roof over our heads, we need somewhere to live! Fortunately, most home insurance policies provide cover for the cost of alternative accommodation.  But then there is the long process of sorting out the work and repairs to be done to the damaged property.

The insurance company would normally appoint a loss adjuster who will make arrangements to visit the property and organise salvage work/repairs.  They would then become the point of contact for dealing with the claim.

It commonly happens that you will only fully realise what your insurance covers in the event of a major claim.  However within insurance policies there are limits which can effect your claim.  For example, with alternative accommodation there may be a limit of 20% of the Buildings Sum Insured (the normal level within a standard buildings policy). Unfortunately some policies are limited to a fixed amount of £25,000*.   You may think £25,000 is a lot of money but see the calculation below!

Accommodation required for family of 4
2 weeks in a local hotel** - 3 Rooms	£	4,000
Rental of 3 Bedroom House for 12 Months at £2,500 per month	£	30,000
Total	£	34,000
Cover from insurance policy	£	25,000
Shortfall not covered by your insurance	£	9,000

 

It is bad enough to be affected by a fire, but to find that the “peace of mind” of your insurance policy is not what you were expecting just adds salt to the wound.  This highlights the need to ensure you check and understand what you are covered for before the event. If in doubt speak to us for independent advice.

* Cover provided under a major bank’s standard insurance policy

** Premier Inn, Twickenham