Why You Still Need Insurance if You're Planning a Staycation, What is High Net Worth Insurance, Plus More

Welcome to the August edition of the West Craven newsletter.

This month, we discuss why you should still buy insurance even if you're planning a staycation, we investigate what high net worth insurance is, we reveal six things you need to know about insurance and your home business, and we share ten minor mistakes you can make that will invalidate a car insurance claim.

Staying at Home for Your Summer Holiday? You Still Need Insurance...

 

With the weather getting warmer, there are plenty of people getting ready to take a break from the Monday to Friday slog. Although many people are looking forward to jumping on a plane and jetting off to somewhere exotic, there’s an increasing number of people who are deciding to take a staycation and explore the UK.

What many may be unaware of is that just because you’re not going abroad, it doesn’t mean you don’t need cover.

Recent studies from Policy Expert have looked into the number of people planning a staycation and the valuables they will take with them.

The results of their research showed 75% of respondents were looking to take a holiday in the UK this summer and also plan on taking an average &676 of valuables along with them.

This is obviously a considerable amount of valuables at risk, but the study also revealed that only 50% of these respondents have the necessary cover for taking their valuables away from home.

In addition to this, the study also found that 1 in 10 respondents have lost valuables - most commonly phones, cameras, wallets/purses and jewellery - to damage, theft or just simply misplacing them whilst on a previous staycation.

It’s not just your valuables you need to think of before planning a trip. While approximately 90% of people take out travel insurance when taking a trip overseas, just under a third of those respondents (32%) felt it was necessary to take out insurance for a domestic holiday, meaning they’d be out of pocket if the worst were to happen and the holiday needed to be called off.

Rebecca Hollingsworth, the policy adviser for travel at the Association of British Insurers, said: 'People may not be aware that a number of travel insurance policies offer cover for UK breaks.

'This means you could get your money back for pre-booked accommodation if your holiday has to be cancelled at short notice - for example because you fall seriously ill or suffer a bereavement.

'Policies may also provide cover if valuables such as cameras or laptops are lost or stolen, although it's also worth checking whether this is already offered as part of your home insurance.'

So before you start packing your bags in your car, why not have a check of your current policies and exactly what they do and don’t cover. It’s considerably cheap to update your policy to cover you away from home and the peace of mind and potential long term savings are undoubtedly worth it.

What is High Net Worth Insurance?

 A house insurance policy is essential for protecting your home and possessions against any unfortunate eventualities. But did you know that there is a limit on how much insurers will pay for a single item? If you have a little more than most to insure, then High Net Worth Insurance could be the perfect policy for you.

How do you define a “High Net Worth” client?

Generally speaking, insurers will consider a client to have a high net worth if they require a household policy that can cover at least &150,000 worth of general contents including specialist items such as antiques and fine art.

Much like a standard home insurance policy, high net worth insurance gives you financial protection for the contents and structure of your home, for the value they are worth. If you have high-value assets and a lack of time, a high net worth policy is perfect for you. High Net Worth insurance providers will give a high-quality service which is quick and simple to understand.

What cover is usually included in a High Net Worth policy?

Contents - all of your contents, including “Fine art”. “Fine art” is an umbrella term and will usually include antique furniture, sculptures, paintings, etc., but not jewellery which must be covered under a separate part of the policy.

Buildings - acts like a normal buildings policy, insuring the structure of your home against damage and accidents.

Bespoke Valuable Cover - usually warranty free and used to cover items like designer jewellery.
Other - including holiday homes in the UK or abroad, annual travel and motor cover.

So what is the difference between a high-value insurance policy and high net worth?

High-Value insurance is usually just a regular household policy, which has been modified so that a larger risk can be insured. However, the policy will usually include a clause or warranty that requires certain security measures to be in place for you to remain insured. For example, all valuables must be kept in a safe, or you must have a house alarm.

High Net Worth insurance, on the other hand, is “warranty free” meaning that there will be no clauses requiring above-average security. There is also an added bonus in that you will agree upon the value of your items before hand, meaning making claims is easier and faster.

Six Things You Need to Know About Insurance and Your Home Business

 

 

Running your own business out of your home can be the first exciting step on the path to being successfully self-employed. But bringing your work into your home can create new risks that must be taken into account.

Your Home Policies Aren’t Adequate
Your home and contents insurance protects your home, but they provide little to no cover against the risks your business presents. For example, there won’t be any type of liability coverage, and your business contents are unlikely to be covered.

You Still Need Cover If the Business Isn’t Under Your Actual Roof
Running a motor trade or fixing cars in your garage? You can still be held liable. In some cases, structures on your property that you use for business will have zero coverage, even if you have a home policy, without a business policy.

Do you Rent? You Still Need a Policy
Firstly, ensure you inform your landlord before you start a home business. Whilst you might not need to worry about protecting the property, you still need cover for your business items such as tools or your computer.

Concerned about picking up forged currency?
It’s a risk that hangs over every business - but it can be devastating for a small business to receive a payment in counterfeit currency. A business policy can assist with covering the cost of lost income.

What about the loss of income?
Should the worst happen, and your home is ravaged by a fire or damaged in a flood, you also have to contend with the loss of income due to being unable to continue running your business. When buying your home based business policy, you should ensure that you have business interruption cover included.

Ensure you get a policy that covers you against Advertising Injury
This protection is especially relevant to creative types working on the internet. Having an insurance policy that protects you if you get sued for libel, slander or copyright infringement is a must have, as you cannot be expected to cover the legal costs.

10 Minor Mistakes that Could Invalidate Your Insurance

 

Being a safe driver extends further than your habits and ability to control your vehicle. It also includes the clothes you wear, the maintenance of your vehicle, and whether you have any distractions in the vehicle. Any one of these simple errors could see drivers risking invalidating their car insurance.

Drivers who make these mistakes run the risk of joining thousands of other rejected claims, which totalled at &114million.

According to research by Uswitch, 63% of motorists are making errors which could leave them seriously out of pocket.

Errors like putting off essential car maintenance, forgetting to renew your car insurance and failing to lock your car doors are all potentially costly mistakes to make.

In an additional troubling development, 25% of those asked were unaware that these seemingly small mistakes can lead to insurers refusing to pay out, whilst a third admitted that they had forgotten how some of these behaviours can negatively impact their insurance.

According to data collected by the Association of British Insurers (ABI), more than 43,000 car insurance claims are rejected every year.

Rod Jones, the insurance expert at uSwitch.com, says: “We know the British public are increasingly time poor, so it’s unsurprising that motorists can be forgetful when it comes to locking up their cars or renewing their car MOT and taxes on time.

“With claims now running into the thousands of pounds, people can’t afford to make a careless mistake that could invalidate their cover and leave them out of pocket.

“It is therefore really important that drivers note down their key renewal dates, and avoid making the easy to forget mistakes to ensure they are covered by should they ever need to make a claim.”

Top 10 mistakes drivers make that may invalidate car insurance

1. Wearing high heels or flip flops while driving - 25%
2. Leaving car unlocked - 24%
3. Putting off car maintenance when required - 21%
4. Forgetting to renew their car MOT on time - 16%
5. Letting pet(s) roam free in the car - 15%
6. Lent car to a friend or family member - 14%
7. Not updated details after changing jobs - 9%
8. Attached fluffy dice, or another object, to rear-view mirror - 9%
9. Forgotten to renew vehicle tax on time - 9%
10. Underestimated mileage travelled every day - 8%

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