As financial institutions tighten up their purse strings to get through these difficult times, it may be more important than ever to ensure your home insurance policy is adequate for the purpose. For example, many have not been able to move house recently due to low house prices or the difficulties in obtaining a mortgage.
Many have opted to improve their existing home instead, by extending their property adding conservatory, adding composite doors or a loft extension. For some of these improvements they may not have changed their insurance position with their company. An example could be where a house originally had good Global composite doors at the rear with 5 cylinder lock, but now had added a conservatory with a different lock system. Or say a back door had now been replaced with sliding doors, if these new improvements have not included the required lock system of makes entry into your home easier than was described in the original premium, then your policy could be void for certain insurance claims.
It is possible that improvements have taken the value of your home over the replacement limit. Remember in many cases you are not insured for the market value of your home, but the cost to rebuild or replace. If this cost now exceeds the original policy value than you may not get enough payout to bring your home back to its original position. This is compounded for those who have just renewed their policies over a few years.
The advice is simple. Go back and review your home insurance policy, especially the small print and schedule. If you believe you have crossed and limits, or do not have sufficient security measures in place as per the conditions of the policy, then you should upgrade your security or speak to your insurance company to amend your policy, before it is too late.