This insurance mistake could ruin your summer!
Don't let this home insurance blunder cost you hundreds.
It seems that many of us are risking home insurance disaster by failing to cover items left out in the open. New figures from financial research firm Defaqto show that 42% of home contents policies offer less than £1,000 of cover for contents left outdoors.
But is this a big deal? A couple of plant pots and bird feeder can’t be worth more than £1000, right?
In fact, many people own really expensive items that they completely fail to consider. And even if your home insurance does cover most of the items in your garden, there are several common loopholes that you need to watch out for.
It all adds up
The contents of your garden shed alone could easily be worth over £1,000. Bicycles, barbecues and garden furniture sets can all cost several hundred pounds each.
And don’t forget things that are embedded or fixed, like water features, lighting, decking, fencing and plants in flowerbeds. Thieves might not be able to run off with them, but they’re still vulnerable to damage from a fire or flood.
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Then there are all the bits and bobs that tend to get left out in the garden during the summer months - children’s games, deckchairs, pet toys and housing… the list goes on.
Finally, you need to consider whether the value of your garden’s contents has risen since you last reviewed your home cover. This time of year is prime garden centre season, with many of us dashing out at weekends to add new equipment to our gardens.
Do you now have a shiny new lawnmower or beautiful new shrub languishing uninsured?
Factors to consider
Unfortunately, you can’t just tick the ‘contents in the open’ category on your home insurance document and be done with it; various exclusions and limitations come up time and time again. Definitions vary significantly between policies, so you really do need to go over the policy wording with a fine tooth comb.
Sadly, my boyfriend only realised this after his bicycle (an item excluded on our home insurance policy) was stolen from our front yard…
Here are some of the factors that typically trip people up:
Limited versus unlimited cover
Consider your insurance options: You can insure the contents of your home for a specific amount, or you can pay a bit more and opt for a policy that offers unlimited cover.
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Lower your household bills
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Do this goalIf a limited cover policy is going to work for you, you need to be very clear about the total value of your possessions. Choose a total value that’s too low, and you risk being under-insured. If this happens and the contents of your home is destroyed, your insurer may refuse to pay out in full.
Personally, I feel more comfortable with unlimited cover, such - I don’t trust myself to be able to accurately catalogue and price every single item in my home and garden.
Just bear in mind that value limits on individual items may still apply, so you may need to get particularly valuable items insured separately.
What are your boundaries?
Your policy may state that it insures items within the boundaries of your home. In this instance, it’s important to confirm exactly what its definition of ‘boundaries’ is.
The items in your garden will probably be covered, but what about the plant pots edging the shared driveway, the bicycle left in that side passage or the fencing that divides your plot of land from your neighbour’s?
These are all areas an insurer may quibble over in the event of a claim, so it’s important you know exactly where you stand before that time comes.
Exclusions
Even if a policy states that it does cover objects outside your home, certain items are likely to be excluded under specific clauses. Read that small print!
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For example, bicycles are almost always excluded, and need to be insured separately. Some policies also exclude plants and trees, money and ‘valuables’.
As with the ‘boundaries’ issue, you need to establish exactly how ‘valuables’ are defined. Is your iPod going to be covered if it’s nicked from your patio table? What about the wedding ring you accidentally drop down the drain?
How to get the right home cover for less
There are a number of simple steps you can take to ensure you get the home cover you need at the lowest possible price.
First and foremost, shop around - this is the single best way of keeping your insurance premiums low. When my home insurer recently gave me an extortionate quote for another year’s cover, I did a bit of research, switched insurers and saved over 50% on my premium as a result.
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You can compare quotes quickly and easily at lovemoney.com’s home insurance centre, but first I’d recommend you read eight savvy tips to cut your home insurance to find out how to keep your home insurance costs down.
And if you’re keen to cut all sorts of other insurance costs, make sure you pursue our Slash your insurance costs goal.
Don't forget, you can always head over to Q&A to ask other lovemoney.com readers for their hints and tips.
More: Make sure your home insurance covers this! | Insurance policies that pay out - and ones that don’t
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