Things Know Insurance

The UK has the third-largest insurance industry in the world, but it can be an extremely complicated product to understand. Having a little basic knowledge of insurance can go a long way towards ensuring that you at least an understanding of what exactly you are, and more importantly, are not covered for.

Here we look at 5 things that you need to know about insurance, in order to clear up any misconceptions that you may have regarding your policy.

#1 A standard insurance policy will not cover everything

When looking for insurance many people fail to realise that a standard insurance policy will typically not cover everything. This means that you may find yourself also needing to purchase separate coverage to ensure that you are fully protected. 

As an example, whilst a standard car insurance policy may cover you for the personal use of your vehicle, if you’ve recently started work during lockdown delivering takeaways to increase your income, and your work involves the use of your personal vehicle, then you will likely need to purchase additional insurance to cover this.

Most insurance policies, such as home contents insurance, also typically do not cover “wear and tear” as it is a product designed to cover theft and accidental damage, not the regular maintenance of the insured property.

#2 You can’t insure against something that has already happened

Hindsight can be a wonderful thing, however, unfortunately, it cannot be used to purchase insurance for something that has already happened!

If you live in one of the many households across the UK that find themselves flooded throughout the year, and you haven’t purchased a home insurance policy that includes flood damage, you can still get insurance coverage for future floods and other disasters, but that won’t pay for damage that has already happened to your home.

#3 Your location can affect the cost of your insurance premiums

Your geographical location can affect the cost of your premiums and environmental risks are one of the highest contributors to the cost of your insurance. Insurers will make adjustments according to the levels of risk associated with past insurance claims based within your geographical area. 

Any areas with a higher risk of burglary, crime, flooding and accidents will usually pay higher premiums for all types of insurance including home insurance, car insurance and business insurance. Ultimately though, location is just a single factor that contributes to the price of your insurance.

#4 Many people underestimate the importance of liability insurance

As it is not a legal requirement, many people underestimate the importance of liability insurance, which covers you for any injury or damage to property for which you are at fault. If a member of the public becomes seriously injured on your business premises and you fail to have the right liability insurance cover in place, the financial costs could be devasting.

A public liability insurance policy can be taken out by individuals, self­-employed workers and small businesses that wish to reduce the financial risk of paying out for any accidents and damages that they may be liable for. 

Employer’s Liability insurance is a legal requirement and it exists to protect employees against any risks posed in the workplace. You should run frequent risk assessments and check your existing policy to determine whether you are fully covered and apply for a new policy if this isn’t the case. 

#5 Brokers can help you find the right insurance and save money

The fine print on an insurance policy can be confusing, and it’s still important to shop around to get the best deal you can, but you don’t have to do it all on your own. An insurance broker can help guide you through the process of purchasing all the right insurance coverage that you need helping you to save money.

Insurers often provide different prices to brokers than they do to consumers because working with an insurance broker reduces the risk for the insurance company. Insurance brokers, like Ashburnham Insurance, are likely to choose the right policy for their customers and are better equipped than insurance companies to handle the detailed discussions with the customer about the type of insurance that they need and where best to get it from.

Want to talk about your insurance policy? Call the experts for FREE on 0800 1696137.

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