So a robbery or a fire shouldn t leave you worse off. Sadly, when it comes to claiming on an insurance policy there are many who end up with nothing. You could blame that on recalcitrant insurance companies which will twist and wriggle in an effort to find ways not to pay out. But that has always been the case. It s a real bore, but it is important to read and understand the small print on an insurance agreements.
Insurance companies are famous for hiding exclusions in there.
For instance, while most household policies have a limit on individual items of around 1,500, you may be surprised to discover that a collection is often regarded as an individual item. So if you have more than 150 CDs, for instance, and they are stolen, your insurer is likely to turn down your claim as their total worth is more than 1,500. Preposterous, I know, but if an insurer can find a rule that allows them to keep their cash, they will. Reading the small print thoroughly is the only way to beat them at their own game. And if you want to add extras to a policy, such as a bike on your contents insurance, you should get an agreement in writing from your insurer to save disagreements later.