Frequently asked questions

1. Why should I bother insuring my house for the rebuilding cost? It's higher, so if I had a fire I'd just move to another house.
That's easy to say, but not always as easy to do. It is extremely rare to find a house is burned to the ground. Normally it is damaged and there is, at least part of the structure still standing. If this happens to you, the local authority could step in and force you to spend money on keeping the structure standing or having it demolished. Either way it will cost you money and if you don't have enough insurance it will mean that you could end up paying these bills yourself, just at a time when you need all the money you can get to rebuild your home.

2. I have a friend living a few miles away whose house is practically identical to mine. How come that my rebuilding costs are so much higher than hers?
People often get confused by this. The rebuilding cost of your home reflects all sorts of factors, including how it's built, the cost of labour in your area, the materials that would be needed to re-instate the building. There is no point in comparing one building with another because not all the factors will be the same - even if the houses are similar - just make sure that your sum insured accurately represents the cost of rebuilding your home and you'll be ok. After all, how do you know your friend has worked out his/her figures correctly?

3. Heavy rain has crept through my flat roof. Why won't the company pay to repair the roof? - They keep saying its wear and tear.
Your insurance covers you against a long list of disasters listed in your policy, like fires, floods, burst pipes and so on. If the rain came through your roof because of a storm you should be able to claim. But if it leaked because the roof was wearing out (which your insurers seem to be suggesting) that's not what your insurance is for.

4. I told the insurance company I would rather have cash than replacement furniture after my fire. Why is the cash they have offered a lower amount than the replacement cost?
Your policy will contain a clause saying that, when they deal with your claim, they can repair, replace or pay for any item. When they replace an item they negotiate a special discount with the supplier. If you turn down their offer to replace an item and ask for cash instead, they will usually agree to this, but they will then pay you the price they would have paid for the replacement (ie including any discount).

5. My three piece suite will never look the same with just one chair replaced. Why won't they replace the whole suite?
The simple answer is because the whole suite hasn't been damaged - just one chair and your insurance is not designed to pay for undamaged items! This question arises quite often and most insurers have clarified the position by putting an explanation in their policies. If you can't see anything in your policy, give your insurers a ring and ask them whether they have clarified their position on 'pairs and sets'.

6. My home is in a subsidence-prone area. Will I still be able to get insurance?
Your broker will still be able to find you an insurance policy. However, it should be noted that the risk of subsidence is likely to mean that your premiums or excess is likely to be higher. Even if your house has been affected by subsidence you will still be able to get insurance, as long as the repair work has been completed successfully.