The world of insurance: Busting common misconceptions

1. Comparison sites are cheaper

Comparison sites work by listing the available quotes for the product you want to buy, starting with the “best deal” at the top. So, at first glance, they’re going to look very competitive. However, there are several reasons why they’re not always the best:

• Sponsor deals: Some comparison sites are sponsored by insurers, which means their quotes will show at the top even if they’re not the best available.
• Access to the market: Comparison sites don’t always scan the whole market, so there might be deals you aren’t seeing.
• Hidden costs: Deals shown on comparison sites may not be as cheap as they seem. The lowest quotes might appear at the top, but the excess you’ll have to pay could be very high, and you may not be able to afford the cost if you need to claim.
• Level of cover: The lowest premium and an affordable excess often sounds good and might be cheap upfront, but there’s a chance that you won’t be covered for essential things such as accidental damage. The policies are also likely to have very low cover limits, which means you won’t have enough cover for the worst-case scenarios (which is even more important when covering a listed property because when things go wrong, it’s expensive!).

Going through a broker or direct to the insurer is more likely to unlock deals that a comparison site doesn’t show you; plus, you get the added benefit of speaking to a human being that understands your needs. It’s always important to make sure you’re getting the right amount of cover, but when it comes to specialist insurance for something as unique as listed buildings, the difference between using a comparison site or a broker could mean the difference between losing your home or having it reinstated.

5. Insurers aren’t knowledgeable about my insurance needs

This depends on the type of insurer you take out insurance with. All insurers will be knowledgeable to some degree, as they’re creating and offering a product so need to have a good understanding of the products.

If your requirements are niche, or you want to deal with someone who really understands your needs, it’s always recommended to go to a specialist insurer or broker. A specialist company will have a deeper knowledge of the relevant sector, like Abode for example. We’re listed property specialists who’ve been insuring listed properties in the UK for almost 20 years. With our expert knowledge of the rules governing listed properties, and our experience of the challenges and risks these can pose to you, we’re perfectly placed to support you through our comprehensive cover and useful insights – giving you the peace of mind that the historic property in your care is truly protected.

6. Your insurance policy can cover everything

Unfortunately, this is not the case. Although there are some pretty comprehensive policies out there, all policies have exclusions, so it’s critical to make sure you understand your policy and what wouldn’t be covered should you need to claim.

As an example, household policies have some standard exclusions such as gradual deterioration and wear and tear. Insurance only covers losses due to unexpected events, and wear and tear overtime is something to be expected. That’s why it’s important to take care of your property and do regular upkeep.

7. Claiming is always the answer

Many people believe that if they suffer a loss or damage to their home, they should always claim on their insurance. This isn’t the case and even more so in today’s climate. Your insurance premium is heavily impacted by the no claims discount, and sometimes even the smallest of claims can wipe out that discount completely. This impacts the price of your policy for the following year and possibly even a few years after that.

If you do need to claim, do your future self a favour – even if the cause of damage is covered, get an estimate of the cost of repairs and compare it to your policy excess first to see if the claim is worth filing. If it’s something that you have the funds to cover yourself, consider doing this, because when your premium increases the following year, you might thank yourself.

If you’re insured with Abode and are ever unsure on what to do around making a claim, get in touch with your account handler who can offer honest advice on what you might be able to expect.

8. Staying with the same insurer for years will get you the best price

A common assumption is that staying with the same insurer will get you a “loyalty” discount that is guaranteed to get you the best price. But that isn’t always the case.

At Abode, we recommend a review of the market at least every three years to test your current insurers price against others in the market. However, if something has changed about your circumstances or you think it should be more frequent, this can also be done. The best thing about being insured with Abode is that we can do all the hard work! We’ve a book of specialist insurers with varied cover options, so together we can work to find the best solution for you, whether that’s staying with your current insurer or moving to a new one.

As we said before, insurance isn’t fun, and can be hard to navigate all the options. But making life easier for you is what we’re here for. Our experienced team of Abode advisors are on hand to answer your questions, clear up any confusion, and ultimately, find an insurance solution that suits you. Call us today on 01622 476433 or email us at info@abode-insurance.com.