Howell Insurance – What does home insurance cover? And other important questions

Why use Howell Insurance?
At Howell Insurance we treat our customers as individuals, with individual requirements. As a local company, our staff are your neighbours - so we have as much interest in your well-being as you do!

Why use an Independent Financial Adviser?
As an Independent Financial Adviser, Howell Insurance has access to all the financial products on the market – but we’re not committed to any one provider.

When you come to us you’re guaranteed unbiased advice to help you choose the financial products most suitable for you, from the financial services companies we know to be the best.

About Home/Building Insurance

What does home insurance cover?
Home insurance covers damage to or loss of the structure and permanent fittings in your home. That is anything that is permanently fixed to the structure of the house, such as built-in wardrobes, kitchen units, bathroom suites, central heating and decorations.

If your home is rendered uninhabitable, good home insurance policies will also cover a claim for alternative accommodation during repairs.

Conditions and levels of cover vary considerably between insurance companies - which is why it’s so important to get expert advice from Howell Insurance before you proceed.

Why is home insurance cover so important?
Your home is probably your single largest investment and your mortgage will be secured against it. If you’re uninsured and your home were to burn down, then not only have you lost your home (and your largest investment), but you’re still faced with paying back the mortgage in full. For most people that would mean financial ruin.

How much should I cover my home for?
You must be careful with this. You are not insuring your home for its market value, you are insuring for the total cost of rebuilding it. You won’t have to buy the land again, so the rebuild cost is typically much lower than the market value.

If you insure for the market value you are over-insuring yourself and wasting your money!

What type of damage does home insurance cover?
Damage to your home can occur in many ways - the most common being fire, storm, flood or explosion. But your home insurance policy should also cover things like falling trees, crashing cars, earthquakes, lightening, break-ins, vandalism, riots – or even more bizarre events, such as rampaging horses or objects falling out of aircraft! But home insurance does not always cover accidental damage – and we do strongly recommend you have this cover.

Does home insurance cover external buildings?
Home insurance policies vary, and you should consider whether you want your home insurance to cover external buildings such as a garage, shed or greenhouse.

Does home insurance cover my home contents?
Building insurance does not cover the contents of your home. For that you need home contents insurance or a joint building and contents insurance policy – which can often be cheaper.

About Home Contents Insurance

What does home contents insurance cover?
Home contents insurance provides cover for those belongings you would take with you if you moved house. Think of it like this: if you were to turn your house upside-down and give it a good shake, all the things that would fall out are those items that would be covered by contents insurance!

Most home contents policies will cover you for fire, flood, and theft, but you need to know if they will cover you for accidental damage, such as your toddler trying to play your cheese toasty in the VCR. As with building insurance, accidental damage cover is often extra.

If you have expensive electronics equipment, jewellery, or antiques, you might also need to cover these separately as most policies will have limits on payouts on individual items.

Why is home contents cover so Important?
Think about all the things you have in your house: the TV, the DVD, the CD player, your clothes and jewellery…don’t forget the carpets and curtains, cooker, fridge, beds, furniture.... Now imagine you return one night to find the whole house cleared out. Besides the heartache, consider how much it's going cost to replace everything. It’s a scary sum of money…

What happens if I underestimate the value of my contents?
It is important that you cover your contents for the correct amount because under-insuring would result in any claims settlements being restricted pro rata.
Insurers will apply a clause in your policy called average. If, for example, you cover your contents for £20,000 and they are actually worth £30,000, you would be under-insured by 1/3. If you then put in a claim for £3,000, the insurers would only have to pay you 2/3 of the claim - so you would only receive a claims settlement of £2,000.

How can I reduce my home insurance premiums?
There are all sorts of things you can do to reduce your premium. The first thing you should do is check that you’re not paying for more cover than you need – eg many people make the mistake of insuring their home for the market value rather than the cost of rebuild. Something else to consider is a voluntary excess: by agreeing to pay more in the event of a claim you could reduce your premium.

If I told a little white lie on my home insurance application to keep the premium down, would it matter?
Don’t do this! By lying on the application form you would invalidate the contract between the insurer and yourself – so in fact it would be a total waste of money. Invalid home insurance might also breach your mortgage lender's terms and conditions. Not a good idea!

Howell Insurance works hard to get the right cover in place for you at the right price, so it’s important that you’re accurate on the application form. If you have made an error on your policy then please let us know. We're always happy to help.

I live in rented accommodation – should I have home insurance cover?
In order to buy insurance you must have an 'insurable interest', which means you have to own whatever it is you are trying to cover. If you rent, you probably don't own the building - which means you cannot insure it. You could, however, cover your home contents with a tenants content insurance policy.

About Life Insurance

What is Life Insurance?
Life insurance (also known as life assurance, term insurance, term assurance) is a simple way to protect your family financially in the event of your death. If you die or suffer from a terminal illness during the term of the policy then a lump sum of money will be paid out to your family or nominated beneficiaries.

Life insurance can also be used as a means of investment or saving, whereby the policy pays out a cash amount on a specified date.

What is the age restriction on life insurance?
There isn’t one. The FSA rule restricting the sale of life insurance to over 70s was finally scrapped in June 2007.

How much life cover do I need?
Howell Insurance recommends that you buy enough life insurance cover to replace the income you now generate for your family. You should also factor in any additional expenses they would incur, such as relocation, or paying for services that you provide at the moment, such as DIY or taxes.

Your cover should last until your dependents are old enough to look after themselves. 20 years is about right for most people, or until your savings can adequately provide for you and your partner - possibly by the time you're 60 years old.

How much will life insurance cover cost?
There's no simple answer to that one! First, you need to consider how much cover you want and how long you want it for. Cost will also vary according to age, gender, smoker status, medical history, height/weight and the amount/type of cover you choose. Other factors, such as dangerous sports or high risk occupations, will also affect your premiums.

About Motor Insurance

What are the different kinds of motor insurance cover?
There are three main types of motor insurance cover:

Comprehensive
Comprehensive car insurance is designed to cover any damage to your vehicle - it is, in effect, an all-risk policy. Comprehensive cover is popular because it provides cover for minor scratches as well as accidental damage. There will be some exceptions to what the policy will cover, such as regular wear and tear, but Howell Insurance will advise you on these before you sign the contract.

Despite its convenience, comprehensive insurance cover is not the best option for everyone. For example, if you're young and you drive a second-hand car that's not worth all that much, you may find comprehensive insurance costs more than your car is worth.

Third party
Third party car insurance is the minimum level of cover permitted under the Road Traffic Act. It only gives cover for your liability to other drivers - it does not cover damage to you or your vehicle. Some policies may also cover your legal fees in case of litigation following an accident.

Third party, fire and theft
For slightly more than the third party option, you can cover yourself for third party, fire and theft – which would also pay out if your car was stolen or destroyed in a fire.

What can I use my car for?
Standard cover allows use of your car for social, domestic and pleasure purposes, and commuting to and from a permanent place of work.
It does not cover use of your car for commercial travelling, any purpose in connection with the motor trade, carriage of goods or passengers for hire or reward, racing, pace-making, speed testing, rallies, trials, competitions, 4x4 off road events and track days.

If you want to use your car for business purposes, you need to arrange extra cover for this. Call Howell Insurance for advice on 01446 792505.

What is an excess?
An excess is a contributory amount you pay, when making a claim. If the claim is deemed not to be your fault, this excess is usually recovered from the other party.

Will I need to provide evidence of my no claim discount?
Yes – your proof of no claim discount is usually one of the documents in your renewal invitation from your most recent insurer. It shows the number of years' no claim discount you have earned. The document must show:

the number of years' no claim discount you've earned
the expiry date of your last insurance policy
any claims you have made

I've been driving a company car until now. Can I still get a no claim discount?
If you were a company car user and are moving to your own insurance we’ll need a letter from your employer confirming:

that you were the sole user of the company vehicle
the dates you were covered under the company car scheme
details of any claims which occurred during this period and whether these were settled on a fault or non-fault basis
that you no longer have a company car and that no more than 3 months have elapsed since you left the company car scheme

What is a protected no claim discount?
We recommend that you protect your no claim discount with a small additional premium. This way, you won't lose your no claim discount even if you do have to make a claim. However, there is usually a limit to how many times you can do this within a five year period.

If I leave the keys in my car am I still covered on my car insurance?
In a word, no! If you leave the keys in your car and your car is stolen, your car will not be covered (even if you just got out to post a letter!). So always take your keys with you - or it could prove an expensive couple of minutes…

Can I drive other people's cars with my own insurance cover?
Not all policies provide this cover. And even when they do, the cover provided is third party only, which does not cover damage to the car they’re driving.

About Mortgage Insurance

What is mortgage insurance?
Mortgage insurance is designed to cover your mortgage repayments in the event of you not being able to work – either due to unemployment, accident or disability. Mortgage protection provides you with peace of mind, allowing you to concentrate on getting back to work rather than worrying about the mortgage.

Why do I need mortgage insurance?
Mortgage insurance is designed to protect the lender. Because lenders can lose a great deal of money on an unpaid mortgage, mortgage insurance cover is often required for loans with less than a 20% downpayment from the borrower, even if he/she has a good credit rating.

How much mortgage cover do I need and for how long?
You need to cover the amount of the outstanding mortgage, up until the debt is paid off.

How much does mortgage cover cost, and how are premiums paid?
Mortgage insurance usually amounts to a small fraction of your total housing cost, typically about 0.7% of the annual mortgage payment. Borrowers usually pay premiums to their lenders as part of their monthly mortgage.

About Travel Insurance

Can I travel when I'm pregnant?
Most policies require you to return home once you are within 12 weeks of your due date (ie before the 28th week of pregnancy).

Is sailing covered as an activity?
Travel insurance will normally cover pleasure sailing, but only within internationally recognised territorial waters. Ocean sailing, sailing in any international waters and competitive sailing are excluded.

Is there cover for dangerous sports?
Standard travel insurance does not usually cover dangerous sports, such as powerboat racing or diving with sharks. Similarly, ice hockey and hockey are excluded activities. For skiing or snowboarding you'll need winter sports cover.

Can I get cover for delayed baggage?
Yes you can. If your baggage is delayed for more than a specified number of hours following arrival at your final destination, you can get cover to replace essential items of toiletries, medication and clothing.

About Pet Insurance

What is pet insurance?
Pet insurance is designed to cover your household pets and is mainly used for cats and dogs. Most pet insurance will pay the veterinary costs if your pet is ill or has an accident. Pet insurance can also cover other expenses such as emergency kennelling costs, theft and travel.

Why do I need pet insurance?
Most people take out pet insurance cover because unexpected veterinary bills can be hugely expensive. By insuring your pet you can rest assured that your pet can always receive the best medical treatment available. Pet Insurance also provides cover for any damage or injury your pet might cause to a third party.

What is my pet insurance likely to be used for?
Veterinary costs can run into the thousands if X-rays, surgery or long-term treatment are required. Injuries to your pet can also lead to other expenses like holiday cancellations and courts costs. If your pet is lost or stolen, advertising and reward costs can be an added bonus of some policies.

Where should I go for pet insurance cover?
When you come to Howell Insurance, you can take advantage of our expert knowledge of the pet insurance market. We'll compare all the different policies out there and recommend the right one to suit you and your pet. Think of it as shopping around – but without the hassle.

Is insurance cover available for other animals?
Most pet insurance companies cover only cats and dogs - but there are a few companies that also cover other animals such as reptiles and exotic birds. Specialist insurance is widely available for horses and is known as Equine Insurance.

About Wedding/Event Insurance

How long before my wedding should I take out wedding insurance?
You really need to arrange wedding insurance cover as soon as you've paid for any part of the wedding, so that your deposits are covered.

What sort of items can wedding insurance cover?
Wedding insurance can cover just about anything that is key to your special day, such as illness, no-show of a key supplier like the photographer or florist – even your wedding cake.

Will my honeymoon be covered by wedding insurance?
Not usually. You should take out separate travel insurance to cover your honeymoon.

Will the couple be covered if one or both of them decides not to get married?
Sorry, no. This would be classed as "disinclination to marry" and is not covered under the policy.

Can anyone take out wedding or event insurance?
The insurance policy must be taken out by someone who has an insurable interest, such as the bride, the groom or the person who is paying the main cost of the event.

What does event cancellation cover mean?
If you have to cancel your event, event cancellation cover would cover you for any deposits or costs that you can't recover - but the reason for cancelling would have to be an insurable one listed in your policy, such as adverse weather conditions, the caterers not turning up and so on. Cancellation cover should also cover any costs involved in you having to rearrange the event elsewhere.

Couldn’t find what you needed to know? Call Howell Insurance on 01446 792505 and we’ll be happy to help.

Latest News

Payments by Credit Card

18th June 2008

Payment by Credit Card now available

Don't forget to pack your travel insurance this summer

12th June 2008

In the rush to pack your suncream and sunglasses, don't forget to pack the most important item - your holiday insurance.

Give yourself peace of mind, by making sure that if anything goes wrong, you and your family will be taken care of.

At Howell Insurance Services, we can build your holiday insurance around your requirements, while providing value for money every step of the way.

At Howell Insurance Services, we place you, the customer, at the heart of everything we do.

Howell Insurance Sponsors Celtic Crusaders Rugby player

06th March 2008

We are pleased to sponsor Paul Ballard this year from the Celtic Crusaders rugby league team who are based in Bridgend and are in N LEAGUE 1.

Paul is one of two brothers currently active within the game. He is mainly seen as a winger or fullback and came through the Academy ranks at Wigan before joining Widnes in 2005. His debut for the Crusaders was in February 2007 and we wish him every success.