Insurance plays a vital role
in the economy. It allows individuals
and businesses a degree of protection
from the impact of unexpected
and damaging future events.
You can insure against all sorts
of risks, there is almost no
limit. Under general insurance
we have focused on three main
types, household insurance,
motor insurance, and travel
insurance.
House
Insurance
House insurance comes in two
types. Buildings
insurance and house
contents insurance. Buildings
insurance covers the structure
of the home and pays the cost
of any repairs or rebuilding
that is carried out as a result
of your home being damaged by
any unforeseen events, as detailed
in your insurance policy. The
sum
insured under the policy
must be for the full cost of
rebuilding your home. It is
your responsibility to ensure
that the sum insured is correct.
If your house is significantly
underinsured your costs may
not be covered or the claim
could even be rejected.
House contents insurance covers
the cost of replacing your possessions.
Anything that you would take
with you, were you to move house,
is covered against loss or damage
caused by the list of risks
detailed in your policy. There
is a wide range of cover available,
ranging from 'indemnity
policies' to 'new
for old' policies. Some
insurers will now base the policy
on the number of bedrooms that
you have, removing the need
to value your possessions.
Premiums
can be affected by your postcode.
Your postcode can be used to
gauge the area where you live,
to see if it is a high crime
risk area, or if it is a part
of the country that is susceptible
to flooding, for example. There
is little you can do about this,
but if you reside in a high
crime area additional security
measures can sometimes reduce
the premium.
The risks for which you are
covered are listed in your policy.
It may be desirable to widen
your cover. This can be done
by insuring against accidental
damage in the home: Extended
accidental damage covers any
accidental damage to the property
like falling through the attic
roof, breaking a table or paint
spillage. As it is more comprehensive
an extra premium will be payable.
Car Insurance
You are required by
law under the Road Traffic Act
to be insured against liability
in the event of injury to other
people or for damage to someone
else's property as a result
of you using a car or vehicle
on the highway. There are three
main categories you can choose
from - 'comprehensive',
'third
party, fire and theft',
and 'third
party only'. How you choose
to insure your car depends on
the level of risk you are prepared
to take and how much risk you
want the insurer to take for
you. Premiums vary according
to whom will drive the car,
its type, where it is to be
kept and what the car is to
be used for. The type of cover
will also affect the premium,
comprehensive being the most
expensive.
Travel Insurance
A typical travel
insurance policy provides
five main areas of cover:
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Medical
Cover |
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Is
perhaps the most important
part of any travel insurance
policy. If you are taken
ill whilst abroad it can
soon become a very expensive
situation. Medical cover
will meet the costs of
such things as emergency
medical treatment, and
the expenses that arise
from returning home early
due to illness, or even
death. This usually forms
part of all travel insurance
but it is wise to ensure
that you have the level
of cover your require. |
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Personal
Liability |
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Covers
the cost of any claims
that are filed against
you for injury or damage
to others and their property.
As with medical cover,
personal liability forms
a part of most travel
insurance, and can extend
to £2 million, even
on cheap policies. |
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Legal
Expense |
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Covers
legal expenses that result
in an attempt to claim
compensation or damages
following an injury to
yourself or death. You
cannot usually claim against
the tour operator, travel
agent or carrier. |
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Cancellation
or Curtailment |
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you
may claim your expenses
back if you have to cancel
your holiday due to an
unforeseen circumstance
such as an illness or
accident. You can often
opt out of this part of
the policy. |
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Personal
Belongings |
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Insures
your belongings whilst
you are on your travels.
Protect yourself from
theft or loss of money,
passport, and other such
valuables, or damage to
any personal belongings
such as bags, clothing
and cameras. |
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Hedgelands Financial Services,
Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
Hedgelands Financial Services is a trading name
of Honister Partners Ltd. Honister Partners Ltd
is an appointed representative of Sage Financial
Services Ltd, which is authorised and regulated
by the Financial Services Authority. Sage Financial
Services Ltd is entered on the FSA register (www.fsa.gov.uk)
under reference 150452. The information and content
of this website is intended for UK consumers only
and is subject to the UK regulatory regime. The
FSA do not regulate will writing services and some
forms of mortgages and tax planning services. Honister
Partners Ltd Registered Office 1 Nicholas Road,
London W11 4AN. Registered in England and Wales
no. 06923303. |
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