Householders Insurance - Moving house

So long as you continue to pay premiums, your property will be covered while you live in the same place, and as soon as you decide to move, let your insurers know. Keep the contents insur ance in force so long as you leave any items in your old home, and continue your buildings cover until the sale of your old home is completed. Under no circumstances should you ever live in an uninsured house, so arrange for your new insurance to begin when you exchange contracts for the purchase of your new home. Since the premium depends on the particular risks involved, your premium may be changed when you move.

`All risks' policy

Although the above policies for contents cover a wide range of perils, they are not as comprehensive as they seem at first sight. `All risks' policies are available, either as an extension to the policy for contents, or as a separate policy to provide further cover. For example, with a policy covering contents only, you would probably not be able to claim if your umbrella and coat were stolen while you were eating in a restaurant, if you left an attache case in a bus or train compartment, or if you lost a contact lens. The first two claims may be refused because the umbrella, coat and attache case were not stolen from your home or place of work, and the third claim because personal loss, as distinct from theft, is not usually covered.

`All risks' policies are designed to cover your more valuable possessions against loss or damage by any cause, including fire, theft and accident. They are particularly appropriate for jewell ery, furs, pictures, objets d'art, photographic and electrical equipment (radios, televisions, tape recorders, projectors, hi-fi), watches, coins, stamps, special collections, hearing aids and sometimes contact lenses. Although the name `all risks insurance ' implies the widest possible cover, there are limits to the benefits provided by this type of policy. You cannot normally insure for loss or damage due to wear and tear, depreciation, moth, vermin, cleaning, dying, repairs or restoration, mechanical or electrical breakdown, climatic conditions, rust, war, riots or radioactive contamination. Some insurers also exclude accidental damage to brittle objects, unless caused by fire or theft, and the overwinding of watches or clocks.

`All risks' policies vary considerably in the conditions on travelling abroad. If you are a regular traveller overseas, you should ask specifically about this. Many insurers automatically extend insurance to any part of Europe. Other companies may without extra charge allow you to take your property with you anywhere in the world, provided you are not abroad for more than thirty days in any one year, imposing also a limit (such as £6,000) on the insured value of the property you may take with you. Often, insurers also exclude travel on charter flights and other non-scheduled services. You can usually overcome all these limitations and exclusions simply by paying an extra premium.

Your insurer will probably ask for receipts or professional valuations for all items worth more than about £600, so when buying jewellery or furs, for example, ask for a receipt, and if the article is second-hand, ask the shop to prepare a valuation statement as evidence for your insurer.

The cost of 'all risks' policies depends on the precise risks involved. Premium rates vary between k i and £6 per k i 00 insured, with a minimum of £4 to £6 a. policy. As with policies covering buildings and contents, the cheapest rates apply to residents in country districts and small provincial towns.

While some 'all risks' policies exclude cover for contact lenses, many opticians sell special insurance policies to cover their loss or damage, limited to £10,000 a year, for a premium of about £4 a year. Insurers usually insist that, when not in use, the lenses should always be kept in their special container, and they exclude damage due to scratching, wear and tear and depreciation.


Moving house

read on: Insurance for the Businessman

So long as you continue to pay premiums, your property will be covered while you live in the same place, and as soon as you decide to move, let your insurers know. Keep the contents insur ance in force so long as you leave any items in your old home, and continue your buildings cover until the sale of your old home is completed. Under no circumstances should you ever live in an uninsured house, so arrange for your new insurance to begin when you exchange contracts for the purchase of your new home. Since the premium depends on the particular risks involved, your premium may be changed when you move.Insurance for the Businessman