• Media centre
• Press releases
• Tesco corporate media
• Tesco Compare media

UK homeowners leaving policy documents unread

13 June 2007

Over a third (34%) of UK homeowners admit to leaving their insurance documents languishing in a drawer unread instead of going through them to familiarise themselves with the level and terms and conditions of their policy according to a study by leading insurer, Tesco Home Insurance.

Two out of five (41%) people concede that although they are aware of their contents cover limit it might not be enough as they've never checked if it's sufficient for what they're actually insuring.

Allan Burns, head of Tesco Home Insurance comments: "We would urge all homeowners to read through their documents to familiarise themselves with the terms and conditions of the policy they have purchased. If they are unsure of any points they should contact their insurer for clarification."

Over a third (36%) could also find they aren't insured for their treasured engagement rings or expensive watches, as they have never checked their insurers individual article limits after splashing out on big ticket purchases.

Almost one in five (19%) of homeowners may also be sacrificing important elements of cover by searching solely for the cheapest policy and not looking at cover limits.

Burns continues: "Being practical about how you protect high value purchases will avoid any confusion or disappointment if you need to claim. Check your insurer's individual article limit. If the price of any valuable item is higher than this then specify it on your policy; otherwise it might not be covered."

To help consumers buy the right policy for them Tesco Home Insurance offers the following top ten tips:

• Decide what you need--buildings and contents cover or contents only.
• Purchasing your buildings and contents cover together is usually better value than buying from two providers.
• When you're shopping around for the best price, also check that the policy limits and extent of cover are adequate for your needs – not all insurers are the same.
• Identify any valuables worth more than your insurers individual article limit (jewellery, plasma TV) - you'll need to specify these items on your policy.
• Read your policy documents when you receive them to familiarise yourself with the details. If you're in any doubt contact your insurer.
• Make a note of all your home contents and how much they're worth in total – you don't want to be underinsured.
• Keep your insurer updated with any changes that you think might have an impact on your policy.
• Consider if you need personal belongings cover while out of your home. It may be a false economy leaving it off your policy.
• Consider buying family legal protection cover—it could save you hundreds of pounds.
• Consider buying accidental damage cover – especially if you're a DIY enthusiast or have accident prone kids!

Burns concludes: "We want everyone to make an informed choice when buying their home insurance policy. It's important to consider what sort of cover you need and what the terms and conditions are of the policy you eventually sign up to."