Understanding Home Insurance with Budget Insurance

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We know that home insurance isn’t always the simplest product to understand so we have collated frequently asked questions from our customers and have provided answers that we hope will help you identify what you’re buying and what it covers you for.

I thought I was insured with Budget Insurance – so why are third parties involved?

So you’re insured with Budget Insurance but you’ve noticed that third parties are involved. The reason for this is that we, Budget Insurance do not underwrite our own policies. We have a panel of trusted insurance providers and when you get a quote with ourselves, you will be insured through one of the underwriters, i,e, Axa or RSA. So when you make a home insurance claim you may be speaking to your insurance provider direct.

Here at Budget Insurance we also work alongside repairers and suppliers to solve your claim. For example, if you’re in need of a home repair, we will contact a supplier to arrange for it to be carried out. Imagine your new carpet has been damaged and it needs replacing, we will contact a local supplier which would come out to you and either look to clean it or replace it if required.

Tip – If you receive a call from a third party and you’re not sure who it is, it may be a good idea to write down the details of the call, for example: the company and their reason for calling. If you’re then unsure of why they are calling you can speak to one of our claims representatives. They will be able to run through any details with you including who should be contacting you. You can find the number for your insurance provider in your policy documents.

What does my home insurance actually cover me for?

When you purchased your insurance, did you review the cover levels and limitations? We understand that the small print is often lengthy and not the most interesting read but it’s worth taking the time to go through it, just so you’re aware of what you’re covered for.

With Budget Insurance, there’s a number of ways you can view your documents. You may have received these in the post when your first took out your policy. If your document drawer is full and you haven’t got the time to look for them, you can access these online. If you go to your My Account and sign in with your email address and password, you will have instant access to your documents. These can be printed or just viewed online.

If you haven’t got time to sit and digest your policy documents now,  here’s a breakdown of the types of things that are covered under your buildings and contents insurance.

Buildings Insurance

  • Up to £1 million damage to your home, including any outbuildings that’s within the boundary of your property
  • Property owner’s liability up to £2 million

Contents Insurance

  • Household goods and non-permanent fixtures and fittings
  • Replacement of keys and locks up to £500
  • Personal belongings, with the option to insure valuable items outside the home as well
  • Alternative accommodation if your home is uninhabitable following an insured event

What events am I covered for?

With the recent storms and severe weather warnings, you’ve probably thought about what events are covered under your home insurance. Each home insurance policy varies so again it’s important to know what your insurance covers.

If you have a Budget Insurance policy you are covered for the following events:

Buildings Insurance

  • Fire, smoke, lightning, explosion, thunderbolt or earthquake damage
  • Storm or flood damage
  • Water or oil damage from any fixed water or heating installation, or from a domestic appliance
  • Riot, civil commotion, strikes, labour or political disturbances
  • Theft, attempted theft, vandalism or malicious acts
  • Subsidence, heave or landslip on your property’s land
  • Damage caused by falling trees

Contents Insurance

  • Fire, smoke, lightning, explosion, thunderbolt or earthquake
  • Storm or flood
  • Water or oil damage from any fixed water or heating installation, or from a domestic appliance
  • Theft, attempted theft, vandalism or malicious acts
  • Subsidence, heave or landslip on your property’s land
  • Damage caused by falling trees, aerials or satellite receiving equipment

Tip – If you live in an area with associated risks like a flood plain or has regular storms, let your insurer know. When you take out your home insurance policy it’s important to be transparent with your insurer, providing as much detail as possible.

What exclusions should I know about?

All exclusions are shown in your Budget Home Insurance policy documentation, however here’s a quick round-up of some things you should bear in mind.

Loss or damage to your possessions that is caused by the following is not covered:

  • Wear and tear: This is defined as the damage that naturally and inevitably occurs as a result of normal wear or ageing. This often occurs with home appliances like a radio, TV or appliances. For example, if your microwave is old and happens to stop working, the chances are it won’t be covered.
  • Domestic pet damage: We all love our pets but sometimes they cause unexpected damage to your home. If your pet scratches, tears or even chews your furniture, unfortunately, this is not covered by your home insurance.

Tip – Look out for wear and tear as it will occur over time. Have a look around your house to see if anything needs replacing and generally keep the house well maintained.

What’s my duty as a customer?

In regards to home insurance, the industry expects customers to keep their building in good repair. So be sure to check each room and maintain it the best you can. Be wary of the small detail if even it’s just a bit of mould, as these types of issues can lead to bigger problems. Insurers also expect customers to take reasonable steps to prevent damage or loss.

We have written a blog on the top five disasters and how to avoid them. Take the time to read how you can do your bit to help maintain your home here.

Top tip – remember your home means a lot to you so don’t just rely on your insurance to put things back to normal when things go wrong. Always check for the damage and keep on top of it.

Are my contents covered outside of the home?

The answer to this varies depending on who you are insured with. It’s important to understand this area of your contents insurance especially if you take valuable items out and about with you. For example, that precious ring that you wear on a night out or the watch you got for your special birthday, or even your smartphone.

With Budget Insurance contents cover, you can select to include ‘away from home’ cover which covers your contents outside of the house as well inside. The total cover is limited to the amount selected when you purchase your insurance with us.

Tip – If you have an expensive item that you would like to specifically cover under your contents insurance tell your insurer. They may be able to add it to your policy as a specified item.

We hope this guide helps you understand the importance of your home insurance and how it can help you protect your home. If you need to speak to us or have any questions, please visit our contact us page here.

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We’re currently experiencing a high volume of calls into our contact centre and whilst we are doing our very best to maintain service levels, we ask that you only call our contact centre if absolutely necessary so we can keep our phone lines available  for vulnerable customers and those who don’t have access to online services.

If you need to check any details or make a change to your policy, please  log in to your Self-Service Centre. It will be much quicker for you to make changes to your policy online at the moment. Once logged in, you can also use our Webchat service which is available Monday- Saturday 8am-6pm and Sunday 10am-4pm to make changes, accept or decline your renewal or if you need to let us know about a claim. To log in, please click here.

We also have some other information that may be useful. Click here to read our FAQ’s, and information on what we are doing to support key workers can be found here.