In 2004, the insurance industry thought that weather damage caused about 45 percent of the claims they paid out. This number went as high as 60% in January of this year, and homeowners may have been able to claim up to GBP300 million in weather-related damages.
Is your house protected from damage caused by high winds? Will your insurance company pay to fix the damage your frozen pipes cause? How much will you have to pay for repairs out of your own pocket if heavy snow damages your roof or rain gutters?
If you don't know the answers to these questions, you might find it helpful to read your home insurance policy. A spokesman for the industry says that too many homeowners find out what their buildings insurance does and doesn't cover after they have had a loss and filed a claim. This is the case for many people whose homes were damaged by the high winds in January. They were shocked to find that they would have to pay for most of the repairs out of their own pockets.
In fact, the most recent numbers show that more than one third of homeowners don't have any home insurance at all, and many more pay for policies that don't cover enough of the damage that bad weather could cause.
There are a lot of differences between home insurance policies when it comes to what kind of weather damage they cover and how much you have to pay out of pocket before the insurance company will pay its share. That's why it's important to sit down with your policy or broker, or both, to talk about how much coverage you have for weather-related damage and if there are any limits or exclusions. Here are some of the most common exceptions and limits:
Damage from floods
If you live in a place where flooding is likely, you may need to buy extra insurance to cover damage from flooding. Insurance spokespeople say you can't forget about this. When damage is fixed after a flood, it can easily cost GBP30,000 or more. Normally, a weather-related claim costs about GBP500.
Broken pipes cause water damage
If your pipes freeze and burst, you may only be able to get a certain amount of money for the damage. If you don't clean up after a burst pipe in your loft, mould and mildew will start to grow, which is bad for your health. The cost of all of these fixes can quickly and easily go over normal damage limits.
What's in it?
If you only have buildings insurance, you might be out of luck if your roof gets damaged and your expensive curtains, carpets, and furniture are destroyed. Even if you have coverage for your home's contents, you might want to get extra insurance if you have expensive things like Oriental rugs or fine art.
Outdoor and garden items
Many policies only cover weather damage to things inside your home, while others will pay to replace plants that are damaged by storms. If you like to garden or have patio or yard equipment, you might want a policy that covers your garden.
Make sure to check your policy every so often to make sure it's still up to date, especially when you buy new things or add on to your home.
