Hi all,
I've been getting some odd quotes for house insurance lately. Seems they tr= y to steer you towards a "blanket" policy with an overall sum insured of 50=
0,000 pounds, even if your house is worth less than half that! The law as I understand it states that if you are underinsured, you will no= t recover enough from the insurer to put everything back in order. Sounds f= air enough, I think. However, if you are OVER insured, you cannot claim the= excess sum insured to rebuild your house to a better standard than it was = originally, so you're basically just throwing valuable premium money down t= he drain for nothing! The fact that the insurer is pushing you towards over= insuring no assistance to you in law in the event of a claim.If the rebuilding cost of my house is say 250,000 pounds, it seems I have t= o pay for 500,000 pounds worth of cover which I can never get the benefit o= f! A quarter of a million pounds worth of cover is simply wasted...
Has anyone else been faced with this stitch-up? Are there still insurers wi= lling to insure to the correct rebuild value only, or are they all now tryi= ng to screw us over with this new scam??