Big changes in life, such as moving home or getting a new job, can be exciting, but it’s easy to forget the impact they can have on the more mundane, such as your car or home insurance.
Life events and insurance risk
There are a number of things that need to be flagged up to insurers so they can assess whether it impacts on how much of risk you are and what is being insured.
To take just one example, a big new extension built on a house means there’s greater potential cost for an insurance provider if things go wrong and a claim is made.
From moving home to driving offences, here are some of the life events insurers need to know about:
Change of job/occupation
What you do impacts on your car or home cover as insurers partly price policies depending on what you do.
A new job might mean you work away from home more, for example, and therefore your property might be empty for longer periods than when you took out cover.
Whether you’re single or married can impact on policy premiums.
Married people tend to have fewer accidents so it could have a positive impact on car cover costs, for example. It also might indicate you’re ‘settling down’ and less likely to accidentally burn the house down!
Annual car mileage
It goes without saying that the more you drive, the greater a risk you are to an insurer.
If you indicate when you take out cover that you only drive a few thousand miles, but find you’re doing a lot more, you might have difficulty claiming unless you’ve told your insurance provider.
Any change to a home’s level of security is of concern to an insurer.
You might have completely new windows with much better locks fitted, for example, or an alarm system put in, both of which could actually bring down the cost of cover.
The number of people living at a property
Any new additions to a family, or if you take in lodgers or other permanent house guests, also need flagging up.
It’s vital an insurer knows the number of people permanently living in a property as, once again, it changes the financial risk associated with a policy.
From tell-tale crime statistics to how much flooding there has been in an area, the address of a property is crucial for insurers when working out the terms of a policy and how much cover should cost.
If you move, but don’t tell your insurer, you may face problems if you need to claim on your car insurance, as well as your home insurance!
Not telling your car insurer about any new speeding points on your licence, or other driving offences, means you’re risking being unable to claim for a crash or injuring yourself or someone else while driving.
You should tell your insurer about anything you purchase that’s of high value and in particular if it exceeds your home cover’s claim limit – which is usually around £1,500 to £2,000 for single items. Otherwise they might reject a claim if the item is stolen or damaged.
Major building work
From loft conversions to new outbuildings, insurers need to be told of any major changes to a property, preferably before the work is started. If not, you’re taking a major risk with what is, for most people, their biggest financial asset.
Here at Policy Expert, our dedicated customer service team is always on hand to help – either online or over the phone. Whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information speak to one of our experts on 0203 014 9300 or email email@example.com
Published 17 August 2018