Understanding Home Insurance with Budget Insurance  

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 insurers 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 claim you may be speaking to your insurer 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 insurer 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.

If you’re insured 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 you’re 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 Self Service Centre 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 builds 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

Tip – These are just some of the inclusions in a Budget Home Insurance policy. When looking through your policy documents, some key pages to make note of are 17 and 18 as these show exactly what’s included in your policy. If you have both buildings and contents insurance, these will be broken down in your policy documentation. 

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, labor 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. If you live in an area with associated risks like a flood plain, let your insurer know.

4) 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 aging. 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 its 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 your 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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