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First of all, this is an expensive problem. There will inevitably be a serious excess, thus you will have to pay the initial part of any claim. Most policies now impose a £1,000 excess but you can shop around for less. I hope you have some money put aside! Second, your claim is very likely to take months, if not years to resolve. There is a lengthy set of exclusions. Here is a typical list. If one or more of these apply, you could well be without any help from the insurer. No outside terraces, patios, decks, walls, paths, gates etc. are covered if none of your main buildings or outbuildings are damaged. Landslip by coastal erosion. Any disturbance of solid floor slabs unless the house's foundations under exterior walls are also damaged by the same cause Settling of new structures or newly made-up ground settling. On a happier note there are the little plus points that are included in standard cover. These exceptions provide some accidental damage cover with your standard perils. Underground service pipes and cables. Apart from wear and tear, you are pretty well covered for any damage you might be responsible for as the property owner. Sanitary fittings, windows etc. Again accidental damage to your bathroom fixtures, built in ceramic hobs in your kitchen and all the fixed glass and glazing in your building. Beware, that there is very likely to be a clause later on into the policy that will restrict what you can claim for. Every item is treated as an individual item, not as part of a set. Thus, if your wash basin is accidentally damaged, don't expect your insurance company to fork out for a complete new bathroom suite! Stand-By Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. The insurance company will pay for alternative accommodation. This could be a nearby hotel or possibly the extra cost to family and friends if they can give you a roof over your head. At least one major online insurance company will also pay the boarding costs for any pets if you have to be away from them. The policy could also provide for either payment of rent or loss of rent due if you are a landlord. There is a limit, a sum insured which is normally around 20% of the total sum insured for your buildings cover. By the way, if you sell the house, the purchaser can enjoy the benefit of the cover up to the date of completion provided they have no cover of their own at the time. WHAT WILL BE PAID - All good policies will provide for 'reinstatement'. That is, in effect, 'new for old'. It will be repaired with new parts and should the entire structure be beyond economical repair, it will be completely restored with new materials and no contribution from you (except any excess). With some buildings, meeting new regulations might mean increased costs. Sadly, if only part of the building is damaged and restored, the remainder of the building might then come under the latest building regs and this updating and its related costs would be down to you. Demolition, removing debris, having the building shored up etc are all covered as are reasonable architects and surveyors fees, legal costs and fees for estimates, plans etc. In all instances the insurance companies like to be in control of the situation so if cracks start appearing in your walls, report it to them at once. Instructing your own surveyor could end up with them recommending that you prop up your house when it might not be required. You will end up in dispute with the insurance company. There are many issues that will arise following a claim involving subsidence. Because of the amount of time that these claims can take, things such as trying to sell your home, trying to change your insurer and so on can all raise problems. It would take a whole volume to clarify them all. One that is worth mentioning is that if you have moved your cover from one insurance company to another, the previous insurers might be required to contribute to your claim under the A.B.I. Domestic Subsidence Agreement. This prevents disputes between insurers as to which insurer pays for what. You should not be affected by any negotiation between the companies. But what happens when an underground pipe has leaked and this has led to movement and thus subsidence? What insured peril should apply and what excess would you have to pay? Do your best to demonstrate that the claim should be dealt with by the the underground services peril. That way you do not have to pay the imposed excess of a subsidence claim. The policy clause in question is known as the 'proximate cause'. You need to be able to show that the proximate cause of the damage is the leaking or broken pipe.
Article Source: http://www.financemanual.com
This article was created by Terry Cod. He has many years of experience working as a claims adjuster with UK insurance companies. His website www.instant-online-insurance.co.uk offers tesco home and contents insurance with online quotes and secure online payment.
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