Until, very recently, the only way to obtain a quotation
for your home insurance was to visit your local insurance broker or telephone
one of the many companies that advertised in the trade directories. The birth of
the Internet has changed all of that and now, obtaining an online home insurance
quote is very easy and straight forward. In the early days of the internet, the
choice of product provider for online home insurance was very small, the quote
systems, they employed were inaccurate and at best the quotes could be viewed as
a guide only. However, the accuracy of online home insurance quotes is
improving all the time and now the majority of information supplied after a
quote has been applied for is fairly accurate. When searching for insurance, the
companies offering cover do vary in the type of service they offer. The new
style, online aggregators who seem to be spending the most amount of money
convincing people to use their service ,ask customers, to complete a generic
questionnaire, which is then used to scrape, product providers data bases to
produce the online quotation. Sometimes a wide range of questions are asked or a
combination of questions and assumptions are used.
Following the completion of the home insurance online
quote form, the results are displayed. The customer is then free to click on
which ever quote he or she find appealing, at which point transfer to the
product provider’s web site takes place. In almost all of these instances,
fulfilment can be achieved online, and policies documents can be downloaded
instantly. If this is not the case, usually confirmation of cover is sent, with
the policy documents following shortly by post. Many online home insurance
providers are able to keep their costs down by insisting that customers print
their own documents. These are available quite securely online and the documents
can be downloaded in a pdf format.
As well as these sales sites, there are many more traditional
insurance brokers and intermediaries advertising online. Most will have a form,
which they need completed. This form is then sent by means of a script to the
broker’s office, where a member of staff will view the quote, calculate the
premium and then pass on a quote recommendation either by telephone or email.
This type of service is still popular; many people feel that
actually speaking to a “real-person”, they will better be able to understand
their exact insurance needs and advise accordingly. One real criticism of online
quote systems in general, is that the generic quote forms used, can not cater
for every scenario. If you are intending to use an online quote generator to
source your own home insurance quotation, remember to study the supplied
documents most carefully, these should include a terms of business or customer
charter and a Keyfacts document outlining the scope of the cover on offer. By
employing the services of a broker, you will have someone explain the more
salient details of a contract to you,If you buy your policy online, you will
need to do it your self, thus careful attention to the detail is required.
Always remember, that the information you provide online is used to form the
basis of the contract between yourself and the insurance company., You are
responsible for any inaccurate answers as these may affect the quote or more
seriously, the actual scope of the cover on offer If you find that the online
form you are using, does not cater for your own set of individual circumstances,
it is probably best if you give the company a ring and put your question to
them.
When applying for your quote, an insurance company or broker
will require you to furnish them with certain amounts of information. This will
enable them to offer premium for your home. There are lots of various factors
that govern the rating of home insurance including some of the following:-
-
Postcode - this is probably the most important piece
of information, when applying for an online home insurance quote. From your
postcode, the insurer will be able to determine a number of important facts
about the area in which you live. These include: the likelihood of flooding,
details on crime in the area and the properties susceptibility to damage by
subsidence. Insurer’s postcode data is now highly sophisticated, and it is not
unknown for two properties within the same postcode area but in different
sectors, to attract different premiums.
-
Sums insured - when you apply for your online quote,
you will be asked for details of your sum insured. If you re requesting a
quote for buildings, you will need to supply the rebuilding cost of your
property. This can cause a little confusion, as most people know the value of
their home, but few are aware of its rebuilding cost. One place, you can check
is on your survey report, proving of course that it is reasonably recent. The
Association of British Insurers also has a guide online that you are free to
use. If you have any doubts over the actual rebuilding cost of your
home, you should seek expert advice and opinion. With regard to insuring your
contents, you will usually be asked to provide a valuation of your contents on
a “ as new” basis. These type of policies are now almost always arranged on a
new for old basis, and by valuing you belongings on a replacement basis, you
can ensure that you receive this protection. Many online insurance covers are
now offering polices on a” no sum insured” basis or with high basic limits, to
help over come the tricky problem of dealing with rebuilding costs or having
to value your contents.
-
Previous Claims. Most insurers will want to know, if
you have suffered any previous losses. This can have a direct bearing on the
premium you are asked to pay or any special terms that need to be applied.
Most online quote engines, don’t seem to have space for a great deal of claim
information, if you have suffered more loses than you can fit in the online
form, always contact the product provider with the additional information. Do
not assume, that they only require details of the few claims you can fit on
the online form.
-
Use of the property - most online facilities will
assume that you only use your home for residential purposes, and that you do
not conduct any business at the property. Many people now run a business from
home and in many cases, insurers will be able to offer cover, but usually, you
will not be able to obtain your quote online, you will have to phone the
company and discuss your needs. If you are renting your property, this as l
will require a different form of policy noting that your property is rented to
tenants.
The Key facts Document
This document was introduced as a method of making sure customers had sufficient
information about an insurance product, to enable them to make an informed
decision as to a contracts suitability One of the problems, with this style of
document, is that it tends to be a little generic it its construction, they do
vary from insurer to insurer but mostly the information is of a similar nature.
It will provide you with a snap shot or synopsis of the cover on offer but for
full details, you must refer to the schedule of insurance and policy document.
The Keyfacts document will have been designed for the contract on offer and
should only be used for that particular contract. Sometimes you will be offered
different contracts by the same insurance company, each contract will have to
have a separate key facts document.
The keyfacts document will
contain other important information which you should study. This will include
information about your insurance company, the duration of the contract and how
to make a complaint or a claim. Most insurance intermediaries will also provide
you with a terms of business agreement document or a customer charter, this
will outline details of the service they are offering to you. You may find that
some of the information seems to be duplicated. Under FSA rules and regulations
all companies whether they are product providers or sellers have to provide
certain details to customers. In simple terms, the actual insurer will give you
a Key facts documents, providing information about the contract and the
organisation, the intermediary will give you a Terms of Business Agreement
outlining the service you will receive from them
When you buy your home insurance
policy, you will be supplied with a policy document which will come with a
schedule of insurance attached. The policy document, will outline all all of
the perils you are covered against and will also list all the terms & conditions
applicable. The policy document should always be read in conjunction with the
schedule as it is this document that actually outlines which sections of the
policy you are covered for. The schedule will also list other important unique
information .Always keep your policy documents safe.
-
Sums insured - details
of the amounts you are covered for and the operative sections will be listed
on the schedule. If a sum insured is not mentioned on the schedule, then that
section of your policy will not be operative. This is often the case with "
optional extra" sections of the policy such as All risks
-
Warranties & endorsements
- most policies will have warranties and conditions and these are stated on
the schedule or a continuation sheet, these should be studies carefully as
they will state certain requirements necessary, to make the policy valid (
such as a requirement to fit deadlocks on doors and key operated window
locks). The schedule should also state any excess you are obliged to pay and
any additional excess you have elected to pay.
back
to top
Copyright Assetsure Limited 2008
