Question: My client has just lost her engagement ring and unfortunately, the value was over the maximum claims limit of her home insurance policy. How can I avoid something like this happening in future?
Answer: Unfortunately, sometimes accidents happen and we lose things that are precious to us.
However, it’s exactly this type of item that your clients will be seeking to protect under their home insurance policy. So, how can you help them to make sure that what they think is covered really is?
Whether your clients are about to take out a new policy or have been renewing theirs for years, it’s vital that they’re aware of the potential impact of new items coming into their homes and when their insurance would need to be updated.
Standard home insurance policies will provide cover for most of your clients’ items while they’re in the home. However, your advice is crucial for clients to understand exactly what their home insurance is and isn’t designed to do. For example, standard cover is unlikely to provide protection when items are worn or taken out of the home; so, in the case of expensive new jewellery, additional personal possessions cover is certainly something you should be highlighting as a valuable addition.
The value of your advice is also priceless when it comes to encouraging clients to think about any items they might have in their home that have a higher value than the standard limits of their policy.
Higher value items such as these should be specified on their policy. If they choose not to, your client might find that they won’t receive payment for the full value of that item in the event of a claim, which could be devastating in the case of precious pieces.
When specifying an item, it’s vital to stress to your clients the importance of giving as much information as possible – including the brand, colour, size and so forth – to help ensure a smooth claims process, should the unthinkable happen.
Your devoted advice means you can save your clients from the financial loss incurred by a refused claim or a pay-out that doesn’t quite cover the full value of the item that has been lost or damaged.
