Five things you need to know about insurance

1. Insurance doesn’t cover everything
It’s important to know that your insurance policy doesn’t cover everything. For example, your homeowners' policy probably won’t cover such events as earthquakes or possibly flooding, and if you are at risk, you’ll need to arrange additional cover. Likewise, your motor policy probably covers you for personal use. So, if you start collecting or delivering items as an additional source of income, you’ll need to arrange additional cover. It’s also important to know that insurance policies generally don’t cover wear and tear. So, if your dishwasher breaks, your guttering needs replacing or your grouting fails, your insurance policy won’t payout. Insurance is designed to provide cover for sudden accidental damage, such as a pipe suddenly bursting. If this happens and your floor or wall is ruined, then you’ll be covered.
 
2. Gaps in cover can prove costly
If things get tough financially and you’re having difficulty paying your bills, it can be tempting to let your insurance policy lapse, but this is a false economy. If the worst happens and you have a disaster, you will have to foot the bill out of your pocket. It’s far better to talk to your insurer or broker and discuss options, such as paying monthly. Also, if there are gaps in cover, insurers may regard you as a higher risk and charge a higher rate. The golden rule is to talk to your broker before cancelling or making any decisions.
 
3. You can’t get cover after the event
This might sound like stating the obvious, but it’s worth pointing out. For example, if you have an accident and your car needs repairing, you may require a hire vehicle. If your policy doesn’t already cover this, you can’t add it at this stage. Car hire will only be provided if the cover was already in place before the event. Likewise, with a home policy, you can’t claim for flood damage if you don’t have this cover in place before the event. It’s worthwhile checking with your insurer or broker that you have adequate cover in place to cover all your potential risks.
 
4. Don’t forget liability insurance
Liability insurance can be even more important than possessions. This pays for injury to a third person or property if you are found to be negligent. A lawsuit against you could be more costly than losing your laptop or jewellery. It’s worth looking at your policy to ensure your liabilities and legal costs are protected.
 
5. Rely on your broker
They say the devil is in the details, and this is definitely the case, but who has the time or inclination to go through your policy’s small print? This is definitely a job for your broker, who has your best interests at heart and is there to help and advise you. It’s important to keep in touch with your broker, particularly if your circumstances change, such as getting a new car, getting married or renovating your home, which could require an update to your insurance.
 
TMD - here to help
As your broker, with many years’ experience and expertise under our belt as well as being Chartered, TMD is here to help you every step of the way. We can advise you on the level of cover you need to have in place to protect you against risks, we can implement additional cover should there be any changes to your circumstances, and we can talk through your options if you are facing financial difficulty. Should you need to make a claim, we can also guide you through the process and help you reach a satisfactory result. To talk to us about any aspect of your insurance, please call us on 01992 703 000 or email: insurance@mcdonaghs.co.uk