Directline Tradesman Business Insurance: Assumptions made

Tradesman insurance assumptions - saving you time with your quote

Please ensure that the information provided by you is correct, and you comply with the statements on this page. Should you decide to buy this policy, these details will form the basis of the insurance contract between us. Incorrect information could invalidate all or part of the policy. Under European law you and we may choose which law will apply to this contact. English law will apply unless both parties agree otherwise. Our cancellation and complaints procedure is detailed in the policy documents, where you can also find the details of the 14 day cooling off period.

If your circumstances change between the date you purchase the policy and the date when you require the policy to commence, please call us. Incorrect information could invalidate all or part of the policy.

Mid term adjustments to your policy will result in a maximum amendment fee of £21.00 (including Insurance Premium Tax where applicable) in addition to any premium charged or refunded.

If you decide to cancel your policy during the period of insurance a cancellation fee will apply amounting to 1/12th of your annual premium, up to a maximum of £50.00 (calculated at the time of cancellation, plus Insurance Premium Tax where applicable).

• Neither You, nor Your Directors nor Your partners have ever had a proposal for insurance declined, renewal refused, cover terminated, increased premium required or special conditions imposed by any Insurer

• Neither You, nor Your Directors nor Your partners have ever been convicted of or have any prosecution pending for any offence involving arson, violence or dishonesty of any kind (e.g. involving fire, fraud, theft or handling stolen goods)

• Neither You, nor Your Directors nor Your partners have ever been subject of a County Court Judgement (or the Scottish equivalent) or been declared bankrupt or insolvent.

• The number of persons working manually in the business (total of Proprietors, Partners, Employees, Working Directors, Labour Only Sub-Contractors and Trainees) does not exceed the maximum allowed of 10.

• Your business does not involve the use of hazardous substances, such as Radioactive Substances/Devices, Explosives, or materials giving rise to dust, flames or vapours, discharge of toxic or dangerous substances into the atmosphere, waterways or elsewhere and any substance regulated by COSHH regulations

• Your business does not use Cranes, Hoists, Passenger Lifts, Escalators and Scaffolding unless erected by a specialist scaffolding Contractor. Your business does not operate in what may be considered a high risk environment, such as Nuclear Plant/Power Stations, Gas or Chemical Works, Oil Refineries/Bulk Oil Storage, Off Shore Structures, Airfields/Airports, Railway Property, Quarries, Towers, Steeples, Chimney Shafts, Bridges, Viaducts, Flyovers, Underpasses, Docks, Harbours, Piers, Wharves, Dams, Reservoirs, Lakes, Rivers, Foundries or Forges, or in connection with Tunnelling, Mining, Piling, Ground Stabilisation, Underpinning, Dewatering, Water Diversion, Flood Protection, or Sea Defences, processes involving a noise level exceeding 90 decibels, Manual Work outside of the EEC.

Link to previous articles: Direct Line Tradesman Insurance: Claims FAQ Direct Line Tradesman Insurance: How to make a claim? DirectLine Business Tradesman Insurance FAQ Direct Line Business Insurance: Overview Directline Life Insurance: Level of Cover you need Directline Life Insurance: Tips and Advice

Direct Line Tradesman Insurance: Claims FAQ

Frequently asked claims questions

Q: What questions will I be asked when I phone to register my claim?
Q: What kind of additional information will I be asked to provide?
Q: What is a Policy Excess?
Q: How will I know if my claim is covered by my policy?
Q: Are there any organisations I can contact for counselling if I am upset by the incident?
Q: Will my premium increase at the next renewal date if I make a claim?
Q: How long will it take to sort out my claim?
Q: Who will deal with my claim once it has been reported?
Q: What measures do Direct Line take to prevent fraud?
What questions will I be asked when I phone to register my claim?
We will ask you what happened and when it happened and what action you've taken so far. Then we'll ask you what it is you're claiming for and the approximate cost(s) involved.

What kind of additional information will I be asked to provide?
It is helpful if you keep receipts, guarantees, instruction manuals, valuations or photographs for your most valuable items in a safe place as these may help to support your claim. By valuable items, we mean tools, computer equipment and business equipment whilst in transit in your vehicle.
We may also ask you to provide us with estimates or invoices for claims involving repair or replacement of items.
If the claim involves a repair, we normally request two estimates for comparison purposes.
If the incident involves theft or criminal damage, or if any property has been lost outside of the workplace, you should inform the police immediately and make a note of the police incident number.

What is a Policy Excess?
This is the part of each claim that you agree to pay - we cover you for the remaining amount. The experienced claims handler will inform you of the amount of the excess and details can also be found in the policy schedule.
We will deduct the amount of the Policy Excess from the settlement of your claim, or alternatively our appointed specialist or supplier will collect this amount from you on our behalf.

How will I know if my claim is covered by my policy?
Our experienced claims handlers are fully trained and have an excellent knowledge of the policy cover you have arranged with us. Wherever possible, we will let you know during your first call to us whether your claim is covered by your policy.
It may help you to read through the policy booklet along with your schedule of cover before ringing us to report your claim.

Are there any organisations I can contact for counselling if I am upset by the incident?
Direct Line, in association with Victim Support, can provide you with support when you need it the most. The emotional effects of a theft or loss can be difficult to deal with - you may feel angry, frightened or unsafe.
Most people suffer in silence, but you needn't - just sharing your thoughts can help. Together, Direct Line and Victim Support can help you pick up the pieces practically and emotionally.
Victim Support is the national charity offering victims of crime emotional support through trained volunteers. If you need a knowledgeable and sympathetic ear, their services are available 24-hours a day.
Simply call the Victim Support line on 0845 30 30 900 or have a look at their website at www.victimsupport.com. Calls may be recorded.

Will my premium increase at the next renewal date if I make a claim?
Our tradesman insurance policies do not include a 'no claims discount', as we feel it would be unfair to penalise clients for the many types of trade claims which are totally outside of their control e.g. flood, fire or theft. However, making several claims under your policy could result in an increased premium at the next renewal date. This depends on the number, type and value of claims you make. Our premiums are calculated individually and you will be notified in advance of the renewal date.

How long will it take to sort out my claim?
Some claims are more straightforward than others - when you call to register your claim one of our experienced claims handlers will give you an indication of the timescales involved.

Who will deal with my claim?
Our Claims Handling Centre is based in Liverpool. The details and contact numbers will appear on any correspondence we send you.

What measures do Direct Line take to prevent fraud? Our main aim is to ensure that our honest customers, which of course are the vast majority, are dealt with as quickly as possible. However, we know that fraud is a reality and that a very small number of people provide false details in order to make up, or inflate claims. We believe it is important that we identify and avoid paying such claims, as they affect the cost of tradesman insurance for everybody. As fraud is a criminal offence, we believe it is our duty to forward details of any fraudulent activities to the Police. There are a number of insurance industry databases through which we share information with other companies about claims and fraudsters. This allows us to use the latest technology to conduct checks for unusual features and fraud. We also share information about fraud with other companies within the financial services industry, the Police and other bodies where the law allows us to do so. These pages are for information purposes only. They do not form part of the contract of insurance.

Link to previous articles: Direct Line Tradesman Insurance: How to make a claim? DirectLine Business Tradesman Insurance FAQ Direct Line Business Insurance: Overview Directline Life Insurance: Level of Cover you need Directline Life Insurance: Tips and Advice Directline Life Insurance: Get Life insurance cover

Direct Line Tradesman Insurance: How to make a claim?

Directline is here to help you make a claim quickly, and deal with it fairly - with as little hassle as possible.

To make a claim, or for information on claims, call our experienced claims team on:
0845 303 1753

Lines open:
8am - 8pm Monday - Friday, 9am - 5pm Saturday and 10am - 4pm Sunday
Calls may be recorded. Calls from a BT landline charged at local rate. Calls from other networks may vary.

How to claim

• Ring us and we'll tell you if your claim is covered - if you are, we'll register your claim straight away. Please have your policy documents to hand.

• If you have suffered a break-in or lost any items outside your property - call the Police straight away, and make a note of the crime reference number.

• For all large claims, we'll arrange for a claims adviser or loss adjuster to visit you as soon as possible

• A Direct Line approved specialist or supplier may be appointed to deal with the claim on our behalf. • Damaged items may be repaired for you. Have you been a victim of crime? Victim Support is the national charity which helps people cope with the effects of crime. It provides free, confidential, practical help and support - you can call them on 0845 30 30 900 (9am - 9pm weekdays, 9am - 7pm weekends, 9am - 5pm Bank Holidays. Calls may be recorded.).

Link to previous articles: DirectLine Business Tradesman Insurance FAQ Direct Line Business Insurance: Overview Directline Life Insurance: Level of Cover you need Directline Life Insurance: Tips and Advice Directline Life Insurance: Get Life insurance cover Directline Life Insurance: How much cover do you need?

DirectLine Business Tradesman Insurance FAQ

Q: What if I don't have an email address?
Q: How long is a quote valid for?
Q: How far in advance can I get a quote?
Q: What if I don't know the date of my claim?
Q: What if I don't know the amount of my claim?
Q: What if the cause of my claim is not there?
Q: How many claims can I have?
Q: What are the exclusions on this policy?
Q: What are the standard excesses?
Q: Do you accept cheques or cash?
Q: What does public liability cover?
Q: What does employer's liability cover?
Q: What if I haven't got a business name?
Q: I'm not a Tradesman, can I insure with Direct Line for Business?
Q: Can you cover my van under the tradesman policy?
Q: What if my trade is not on the list?
Q: What do I do if I have multiple trades?
Q: How many trades can I have on this policy?
Q: What do I do if I have more than three trades?
Q: What is the maximum number of people I can cover for manual work?
Q: What is the maximum number of people I can cover for clerical work?
Q: What covers are available under this product?
Q: If I select the tools section will they be covered in the van overnight?
Q: Under what circumstances will my premium in year 2 be the same as year 1?
Q: What would be a material change to my risk?

What if I don't have an email address?
You will need to enter a valid email address to obtain a quote. If you do not have an email address you can still obtain a quote and buy a policy by calling us on 0845 303 1756. Calls may be recorded.

How long is a quote valid for?
Your quote will be valid for 30 days from the day you receive it.

How far in advance can I get a quote?
You can get a quote up to 30 days in advance.

What if I don't know the date of my claim?
If you are unsure of the date of your claim(s) please contact your current or previous insurance provider to find out. Alternatively you can enter an approximate date and then contact us on 0845 303 1760 to amend your claims details with the correct information. Calls may be recorded.

What if I don't know the amount of my claim?
If you are unsure what the amount of your claim(s) is please contact your current or previous insurance provider to find out. Alternatively you can enter an approximate cost and then contact us on 0845 303 1760 to amend your claims details with the correct information. Calls may be recorded.

What if the cause of my claim is not there?
If you can not find the cause of you claim from the list provided, please contact us on 0845 303 1756 for help. Calls may be recorded.

How many claims can I have?
You can provide us with up to four claims within the last 3 years. In the majority of cases we will be able to help, but our ability to provide a quote will depend on the information you supply. Unfortunately, if you have more than four claims we will not be able offer a quote

What are the exclusions on this policy?
Please refer to the policy summary document where we detail the general exclusions. For more details please refer to your policy wording or call our customer services department on 0845 303 1756. Calls may be recorded.

What are the standard excesses?
Your individual excesses will be found in the 'Your Summary' page when you have completed the quote details or alternatively please call us on 0845 303 1756. Calls may be recorded.

Do you accept cheques or cash?
No, we only accept payments by direct debit and credit/debit cards. Cards that are accepted are MasterCard, Visa Electron, Visa, Maestro and Solo card.

What does public liability cover?
This provides protection against your legal liability for death or bodily injury (other than to an employee) and / or loss or damage to third party property arising out of the operation of your business.

What does employer's liability cover?
This protects you against claims for compensation from employees following injury for which you are legally liable

What if I haven't got a business name?
If you do not have a business name then please enter your full name instead.

I'm not a Tradesman, can I insure with Direct Line for Business?
We only provide insurance solutions for Tradesmen, Residential Properties and Vans at present. We are in the process of developing some additional products.

Your Business

Can you cover my van under the tradesman policy?
Unfortunately your van is not covered under the tradesman policy but Direct Line does offer van insurance as a separate product. If you would like to get a quote you can do this online or call us on 0845 303 1756. Calls may be recorded.

What if my trade is not on the list?
If you can not find your exact trade, or one that best matches what you do, on the list provided please call us on 0845 303 1756. Calls may be recorded.

What do I do if I have multiple trades?
You have the option to input up to three trades so that we can fully understand your business. If you need some help selecting the right trade or you have more than 3 trades under one policy please call us on 0845 303 1756. Calls may be recorded.

How many trades can I have on this policy?
You can select up to a maximum of 3 trades on your policy.

What do I do if I have more than three trades?
If you need to add more than three trades under your policy please call us on 0845 303 1756. Calls may be recorded.

What is the maximum number of people I can cover for manual work?
You can have up to a maximum of 10 people covered for manual work under your policy.

What is the maximum number of people I can cover for clerical work?
You can have up to a maximum of 10 people covered for clerical work under your policy.

What covers are available under this product?
Our policy provides the following as standard:
• Public Liability
You can also insure:
• Employers Liability
• Tools

If I select the tools section will they be covered in the van overnight? Only if your van is in a locked building or compound. Please refer to the policy wording for full details. Under what circumstances will my premium in year 2 be the same as year 1? The premium will be fixed for two years if there is no material change in your risk. What would be a material change to my risk? Some examples of materials changes to your risk are if you hire more employees, make changes or additions to your trade, or add extra covers to your policy.

Link to previous articles: Direct Line Business Insurance: Overview Directline Life Insurance: Level of Cover you need Directline Life Insurance: Tips and Advice Directline Life Insurance: Get Life insurance cover Directline Life Insurance: How much cover do you need? Direct Line Life Insurance: Types of Covers

Directline Business Insurance

Whether you're a plumber, decorator, electrician or builder you won't want to put your livelihood at risk. After all, one small mistake could jeopardize your ability to earn an income.
Tradesman Insurance from Direct Line protects you from such situations, giving you a really good deal: the comprehensive standard policy gives you up to £1 million public liability cover, with the option to increase up to £5 million and add additional covers, allowing you to get precisely the insurance you want.
For full details, please refer to the tradesman insurance policy document, or read on for a guide to our cover: it's a good deal better!

Standard Cover

Public Liability: up to £1 million of cover for compensation payable arising from injury to third parties or damage to their property caused by you in the course of your business or arising from the sale, supply, servicing/repair or use of the goods that you sell and for which you are held legally liable. You can increase the limit of cover if required.

Optional Covers

Employers' Liability: up to £10 million of cover against compensation claims by your employees injured in the course of employment by you where you are held legally liable, as well as expenses and legal costs arising from such an injury. Tools & Equipment: all risks cover against damage to tools and equipment. Different levels of cover are available, up to £1,500 per worker.

Link to previous articles: Direct Line Life Insurance: Mortgage Life Cover Directline Life Insurance: Level of Cover you need Directline Life Insurance: Tips and Advice Directline Life Insurance: Get Life insurance cover Directline Life Insurance: How much cover do you need? Direct Line Life Insurance: Types of Covers

Jargon buster for Insurance Terms

Accident, sickness and unemployment insurance

See mortgage protection insurance and payment protection insurance.

Buildings insurance

Pays the cost of repairing or rebuilding your home if it is damaged by unforeseen events (as detailed in the insurance policy).

Contents insurance

Covers the cost of replacing possessions lost or damaged due to unforeseen events (as detailed in the insurance policy).

Cover

The protection given by insurance.

Critical illness cover

Insurance that pays a lump sum if you're diagnosed with a specified critical illness covered by your policy.

Dental insurance

A type of health cash plan that focuses specifically on dental care expenses.

Excess

The amount you agree to pay before your insurer pays the rest of the bill (for example, the first £100 of a claim).

Exclusions

Things that your insurance will not cover.

Health cash plans

Provide limited cash sums towards everyday healthcare bills.

Income protection (or permanent health insurance)

Insurance that pays you a monthly income if you're unable to work due to illness or injury, until you are able to return to work, or retirement, whichever is the sooner.

Investment-backed life insurance

Life insurance which has two roles: to protect you, and to act as an investment. These include Whole-of-Life insurance, With-profits bonds, Income and growth bonds, Endowment policies and Maximum Investment plans.

Joint life

Typically, life-cover to protect a family in the event of either or both parents dying.

Mortgage protection insurance

Accident, sickness and unemployment insurance (or payment protection insurance) used to cover your mortgage payments.

Motor insurance

Pays out if you injure someone or damage someone else's property while driving. It may also cover damage to your own car.

No claims discount

A discount if you haven't made a claim on your insurance policy within a specified period of time (for example 3 years) but it does not mean the premiums to which the discount is applied do not rise.

Payment protection insurance (or accident, sickness and unemployment cover)

Pays out a regular amount (repayments of a loan, although some cover bills as well) for a limited time – a year, say – if you can't work for health reasons or redundancy.

Policy

The details of what your insurance covers, what it doesn't, and what it costs, normally provided separately.

Premium

The amount your insurer requires you to pay for insurance.

Private medical insurance

Insurance that pays for you to receive private medical treatment.

Schedule

The specific details of what's covered, and what's excluded, by a policy.

Term insurance (or term assurance)

Life insurance giving protection for a specific amount of time (the 'term').

Travel insurance

Pays out if you unexpectedly have to cancel your holiday; are taken ill while away; accidentally injure somebody or damage somebody else's possessions; lose your own possessions; and so on...

Link to Previous article : Getting help with Travel Insurance

Getting help with Travel Insurance

Getting help with Travel Insurance

Generally, firms selling insurance and those providing insurance cover (underwriting the risk) have to be regulated by us, or be the agent of a regulated firm. There are some exceptions, for example travel agents that sell travel insurance do not usually need to be regulated by us.
Regulated firms and their agents are put on our Register and have to meet certain standards. Always make sure that the firm you use is on our Register before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints and compensation procedures. To find out if a firm is on the FSA Register, see check the FSA site.
Your friends or family may recommend an insurance broker or insurance company or you can find one along your high street. Alternatively there are organisations that can help you – see Useful links. But remember, always check that the firm you use is on the FSA Register.

Buying without advice

You don't have to get advice before you take out an insurance policy, and UK firms that sell insurance without advice still have to follow our rules. But it is up to you to decide whether the policy is suitable for you. You may have less grounds for complaint if the product turns out to be unsuitable.

What information will you get?

When you contact an insurance broker you will get two important pieces of information – sometimes in the form of keyfacts documents:

• details of the service the broker is giving you – see Step 1; and

• a summary of the insurance policy being offered to you – see Step 2.

Getting the Key facts

Step 1

When you contact an insurance provider, they must give you details of the service they offer. It may be in a keyfacts about our service document, but doesn't have to be. They will tell you:

• whether they're offering you advice or just information about the product;

• whose insurance policies they offer – it may be from one company or many; and

• how much you'll have to pay for the service.
Use this document, or information to shop around to get the service you want at the price you're happy with.

Step 2

Once you've discussed what you need and answered all the questions about yourself and what you want to insure, the intermediary, insurance company or the firm selling you the insurance will give you a keyfacts about the policy. This sets out the essential facts. Ask questions if you don't understand anything as misunderstandings could lead to the insurance company refusing to pay out when you claim.
The keyfacts policy summary will set out:
• what the insurance policy actually covers;

• what it doesn't cover;

• any limits or restrictions; and

• other important features you need to know before you make up your mind.

Make sure you get this and that you read and understand it. Ask the provider or insurance company to explain anything you don't understand.
Use this document to shop around and compare like with like. Another policy may be cheaper but does it offer the same cover?

Important tips for travel Insurance

1. Check that the firm is on FSA Register.

2. Use the keyfacts about the policy to compare other policies.

3. Answer the questions as best you can – it will help avoid misunderstandings.

4. Ask questions if something is not clear.

Link to Previous article : Travel Insurance

Travel insurance

What is Travel Insurance for?

If you are a UK resident you are entitled to free or reduced-cost, State-provided healthcare when visiting a European Union (EU) country as long as you have the necessary European Health Insurance Card (EHIC). However, in many other countries healthcare can be very expensive.

Most travel insurance plans will cover medical bills for £1m, and often more, as well as pay for an emergency air ambulance to bring you home for treatment in the UK. Travel insurance can also cover you against other mishaps while you're abroad, from lost luggage and theft to flight delays. Make sure you read the policy summary for exclusions – there are bound to be some. Also check for excess charges – some policies charge an excess per clause rather than one overall.

You could be offered travel insurance by the travel agent where you book your holiday, but you don't have to take their cover and generally travel insurance sold at the same time as a holiday, isn't covered by regulation. You can shop around and get the right cover for you. Find out whether your employer offers travel insurance as part of your benefits package.

What Travel Insurance does not cover?

You won't usually be covered for medical conditions you already have, or may have to pay extra to get them covered. Always ask if you're in doubt. Travelling against a doctor's advice may also invalidate your cover.

Important Tips for Travel Insurance
1. Read the paperwork and ask questions if you don't understand anything.

2. Make sure you check what you're covered or not covered for.

3. Tell the insurance company if you have any existing medical conditions.

4. Find out if your employer provides health insurance as part of your benefits package.

5. Don't be pressurised to take travel insurance from your travel agent – you don't have to, and other policies may be more suitable for you.

Link to Previous article : Flood Insurance - Flood damage claim options

Flood Insurance - Flood damage claim options

Flood damage insurance comes to your aid in case you have lost your possessions due to a flood in your area.
If you have suffered flood damage and are intending to claim on your insurance policy, consider the following:

--You can make a claim directly to your insurer – who is obliged by FSA rules to handle your claim fairly.

--Individuals or companies who offer to notify your claim to the insurer or to negotiate it on your behalf) must:

-be regulated by FSA or

-be an exempt professional firm such as a law firm

-And as such, must handle your claim fairly.

Think about whether you need to hire a third party's help.

If you do decide you want to hire a third party, make sure you check how much it will cost you first (they may charge a share of any sum paid out by the insurer).

The Association of British Insurers (ABI) has a useful list of questions and answers about flooding and insurance on their website – please refer to that for more information.

Link to Previous article : Pet Insurance

Pet Insurance

What is Pet Insurance for?

There are two kinds of pet insurance:
• Life-long Pet Insurance – it will pay out for specific conditions for the life of your pet; and

• Time-limited Pet Insurance – it will only pay out for 12 months per condition.

Policies vary, but in addition to an agreed maximum payout for a vet's bills and drugs, some will pay for you to advertise if your pet has been lost; or for kennel/cattery fees if you suddenly have to go into hospital; and, in some cases, the cost of making good damage caused by your pet.

What isn't covered in Pet Insurance?

Generally, the routine maintenance items such as annual vaccinations, boosters and nail clipping, as well as spaying and neutering.

Keeping costs down for Pet Insurance

As with most insurance, the higher the excess (the amount of the claim that you agree to pay yourself), the lower the premiums. Make sure you disclose any key relevant information. Shop around and always compare what's covered by a policy, not just the price. Some might be cheaper than others, but they may not offer the same level of protection.

Important tips for Pet Insurance

1. Read the paperwork and ask questions if you don't understand anything.

2. Make sure you check what you're covered or not covered for.

3. Shop around when it comes to renewal time to make sure you're getting the best deal.

Link to Previous article : Motor Insurance

Contents insurance

What is Contents insurance for?

Contents insurance covers the loss of or damage to the contents of your home. This includes your furniture, electrical goods and other items within your home. But also items you take outside, for example cameras, jewellery and briefcases. Different policies offer different levels of cover but generally you'll be covered against theft and fire, and have the option to insure against damage you may cause by accident.

If not already covered by your contents insurance, you may want to consider travel insurance for loss or damage to your personal belongings whilst travelling. For more information see travel insurance.

What isn't covered in contents insurance?

Anything beyond the maximum amount your insurer says they will pay, and it may pay a maximum amount on single articles. You'll need to specify the value of the contents. Some companies have limits on the value of any one item under the general policy so you'll need to specify individual items such as expensive jewellery or camera equipment, for example. Your cover may also be affected or cancelled if you leave your home empty for a long period of time, or if you let it out. Damage to the building itself is also not covered; this needs to be covered separately with Buildings insurance – see Buildings insurance.


Keeping costs down for Contents insurance

Many insurers will offer discounts if you have a burglar alarm, window locks or if you're a member of a Neighbourhood Watch scheme. You may also get a deal if you combine contents and buildings insurance. Always compare what's covered by a policy, not just the price – the keyfacts policy summary will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

Level of cover for Contents insurance

Some contents insurance policies offer new for old. This means they'll replace old damaged appliances and possessions with new ones when you claim.
Bear in mind that your premiums may increase the following year, or the insurance company may refuse to cover you for the same risk if it happens more than twice, for example.
Important tips for Contents insurance

1. Read the paperwork and ask questions if you don't understand anything.

2. Make sure you check what you're covered or not covered for.

3. Shop around when it comes to renewal time to make sure you're getting the best deal.

Link to Previous article: Buildings Insurance

Buildings Insurance

What is Buildings Insurance for?

If you have a mortgage, your lender will insist that your mortgage property (and their security) is protected by buildings insurance. This insurance usually pays out if your property is destroyed by fire, floods or subsidence (although you will need to check if you live on a flood plain, for example).

Damage to fixed fittings such as baths and kitchens are often included, as well as sheds, greenhouses and garages.
You might be offered buildings insurance when you take out your mortgage, but you don't have to take what's on offer. You must use the keyfacts policy summary to shop around and get the best deal for you.

If you purchase a leasehold property (such as a flat in a block of flats) the freeholder may have arranged buildings insurance for the whole block, in which case you may not need your own buildings policy.

What isn't covered in Buildings insurance?

Your cover is based on what your home would cost to rebuild. You can check whether you have enough buildings insurance through the Building Cost Information Service (BCIS) website. It has an online tool to help you calculate the sum you should insure your building(s) for, in case your home has to be entirely rebuilt.

You need to tell your insurer if you extend your property, for example with a loft conversion or conservatory. Your belongings are not covered – these need to be covered separately with contents insurance.

Keeping costs down for buildings insurance

As always, shop around. You may also find that you get a better deal if you buy buildings and contents insurance together. Most policies have a standard excess charge which means you agree to pay the first part of any claim, for example the first £50 or £100. If you agree to pay a higher excess you might get a cheaper policy. Always compare what's covered by a policy, not just the price – the keyfacts policy summary will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

Important tips for buildings insurance

Read the paperwork and ask questions if you don't understand anything.

Make sure you check what you're covered or not covered for.

Shop around when it comes to renewal time to make sure you're getting the best deal.

Protecting your possessions – special insurance

What would happen if your house was damaged in a storm, flood or fire; you were burgled; or a tile fell off your roof and injured a passer-by? Do you have the right level of cover?

What about your personal belongings or pets – are they covered?

There is insurance to protect your home inside and out as well as to protect your possessions.

As with all insurance, it's important that you:

• give the full facts;

• read the policy summary to check what's covered and what isn't;

• shop around to get the best deal for you; and

• always compare what's covered by a policy, not just the price.

Some might be cheaper than others, but they may not offer the same level of protection.

You can choose from the following:

• Buildings insurance

• Contents insurance

• Motor insurance

• Pet insurance

• Flood damage claim options

In the next few articles, let's discuss how you can go about considering and taking these special types of insurance schemes to protect your posessions.

Link to previous article Travel Insurance

Term Insurance

Continuing further from the previous article on Life Insurance, let’s today discuss about the Term Insurance.
Term insurance
Term Insurance is the simplest and cheapest type of life insurance policies available in the market, and is known as term insurance because you have the option to choose how long you want to be covered for, say, 5, 10, 15, or 20 years (this duration is known as the term).

Term insurance only pays out if you die within the term you've agreed. If you live longer than the term, you get nothing. As a couple, you can also take out term cover in both your names, with the policy paying out if either of you die during the term.

Things to look out for while buying term insurance
While it is easy for anyone to think about term insurance, it is equally important that you understand what you are buying. Consider the following questions:

• What type of policy do you buy? For example,
1. family income benefit (a policy which pays out regular income, like every month, instead of a lump sum),
2. increasing policy (where cover and premium will rise over the years),
3. decreasing policy (where cover and premium will fall over the years),
4. renewable policies (which let you renew and extend the original term).

• Check for exclusions in the policy - in other words, there may be certain conditions and situations when the policy won't pay out. For example, most do not cover death due to alcohol or drug usage or suicide cases. You might not be covered while taking part in risky sports like car racing. If your health is poor when the policy starts, some causes of death might be excluded or you might be refused cover altogether.

• Premiums shown are usually fixed for the whole term. There are also contracts where premiums are reviewable after a certain period, usually five years.

• How flexible is the contract? Can you reduce or increase cover easily as your circumstances change? Are there extra charges for doing this? Does cover stop immediately if you miss a payment or is there a period of grace?

• By paying extra, you can usually include a waiver of premium. It pays the premiums if you can't work because of a long-term illness so that your cover is not interrupted.

• If you want to change insurer, check the level of premiums for the new contract before switching (premiums may have gone up because of older age or because you have developed medical conditions). Also check the new level of cover compared to the previous one. Different benefits may be available, and different exclusions may be applied – for example you may not be covered for medical conditions that have developed before the switch even if these were covered under the previous contract. If you do decide to change, make sure you do not cancel your original cover until you are fully covered by the new contract.

• The policy can be set up under trust. This means that in the event of death, proceeds of the policy are paid directly to dependants of your choice. Provided a trust is set up properly, there may be benefits to doing this. However, using a trust may not be suitable for everyone and because of the complexities we recommend you seek financial and legal advice.

In the next article, let’s discuss some more details about Term Insurance

Life insurance

Protecting your family and dependants

Today, let us begin with the introduction to Life Insurance.

We all know that life insurance is good and very useful, especially when we have to cover ourselves against the unfavourable events happening.

Life insurance is about providing some financial security for people who depend on you if you died. (So if you don't have a partner, spouse or civil partner, children, or other dependants, you may not need life cover.)

To make sure you buy the right amount of cover, with the right terms and conditions, you should consider getting some advice. The adviser assesses what your family would need, and shops around for the cover that suits you best.

Always answer questions as best you can and disclose any existing medical conditions when asked. If you don't give the full facts, you could invalidate your policy and the insurance company won't pay out.

There are two main types of life insurance: term insurance and whole-of-life insurance.

Term insurance (also called term assurance) pays out only if you die within a certain term, and whole-of-life insurance pays out whenever you die. Some whole-of-life policies also contain an investment element to them, but such investment-type policies cost a lot more than protection-only insurance.

If you want investments, consider the full range of products (not just life insurance) which might meet your circumstances and needs.

Tomorrow, in the next articles, let's discuss in detail about the term and whole life insurance!

Payment Protection Insurance-part II

This is part II of the article Payment protection insurance

What should you do while planning to take Payment Protection Insurance?

• Think carefully about the risks you could face while paying back a loan, mortgage or credit/store card and whether taking out PPI would be to your advantage. If you had an accident that stopped you from working, would you have enough savings to be able to continue paying off the loan?

• Consider whether you have other insurance which already covers you (for example through your employer), or whether other types of protection insurance may be more appropriate.

• Don't be pressurised into buying it - you don't usually have to take out PPI to get a loan and you don't have to buy it from the same place you get your loan from.

• Check online forms when applying for loan or credit online. Sometimes PPI is selected by default and you will need to change this option if you don't want to buy it. You should also print out or keep copies of completed forms in case you need to complain or make a claim in the future.

• Find out whether the firm is giving you advice, if not, consider whether you need advice. Getting advice means that the firm should recommend a PPI or other policy that meets your needs.

• Find out whether the policy is a single or regular premium. If you buy a single premium policy you pay a lump sum of 3-5 years' worth of premiums in advance. This amount is added to the sum you borrow and attracts interest, so you'll be paying more over the long run.

• Think about what you would do when the claims payments stop and you are still unable to work. How would you pay the rest of your loan?

• Check to see what you will be covered for and what won't be covered – for example any exclusions relating to the nature of your employment or your medical history.

• Check what you will get back if you cancel the policy or repay the loan early.

Ask the salesperson to explain the terms and conditions of the policy and make sure you read the keyfacts Policy Summary document – especially read the exclusions carefully.

In the next article, let’s cover some fine details and more information on Payment Protection Insurance

Payment protection insurance

Yesterday, in the previous article, we talked about the special case of Mortgage payment protection insurance.

Today, let us focus on the wider topic of Payment Protection Insurance Scheme.
What is it?
Payment protection insurance, or PPI, is insurance that will pay out a sum of money to help you cover your monthly repayments on mortgages, loans, credit/store cards or catalogue payments if you are unable to work. This could be because you have an accident or sickness, or become unemployed through no fault of your own.
This means that the insurance company will pay the monthly repayments (or a percentage of them) on your behalf for a fixed period of time if you become unable to work. It is sometimes known as ASU (accident, sickness and unemployment) insurance, Account Cover or Payment Cover.
PPI can provide worthwhile cover against unexpected changes in your personal circumstances, but bear in mind its limitations and exclusions.


Where might you get it from?
You're likely to be offered PPI by the company when you take out a loan or credit agreement, but you don't have to buy it from them. You can buy it yourself separately from insurance brokers, including over the internet. Shop around to get the best deal for you.
PPI is useful, but you may not always want it or be able to claim on it when you need to.


What are the main features?
• PPI is almost always optional – you should not normally be refused a loan if you decide not to buy it.
• PPI only pays out for a set period of time, generally either 12 or 24 months.
• To claim on the unemployment part of the policy typically you must have been employed continuously by the same company for the last 12 months on a permanent contract.
• You may not be able to make a claim for an illness you already have or have had before. Make sure you check this before you take out the policy.
• Stress or back complaints, and possibly other conditions, may not be covered, even if you can't work because of them. Again, it's worth checking before you take out the policy.
• You have a legal right to cancel the policy and get a refund within 14 or 30 days of taking it out.
Tomorrow, let’s talk about how and whether you should take this insurance.

Mortgage payment protection insurance

Continuing further from the previous article about Critical Illness, let us today talk about the insurance for mortgage payment protection or commonly known as Mortgage payment protection insurance.

Mortgage payment protection (also called accident, sickness and unemployment insurance) is an excellent insurance scheme as it takes care of the undesirable situations when your income stops. A typical policy will start to pay your mortgage repayments one month after your income stops due to redundancy or job loss, accident or illness, and continues to pay for the next 12 months. This insurance cover can be very beneficial in case you are in a bit dodgy kind of a job, where the chances of redundancy are quite high. Hence, if you are made redundant by your employer, or you are unable to get your income due to sickness or accident, then this mortgage payment protection plan will take care of you.

But the first question: Do you really need Mortgage payment protection insurance?

You don't have to have this type of cover at all (unless it's a condition of your loan) and you certainly don't have to buy it from your own lender, so shop around for the best deal for you. But this insurance is very suited if you have taken a loan or mortgage and are planning to repay it back from your salary or income. In case you loose your job or fall sick such that you are unable to work, then your loan or mortgage payment will not be paid on time, and you will end up in a financial distressed situation.

If you take the Mortgage payment protection insurance, then it will make sure that atleast your payments for your mortgage of loans are honored on time and you don’t loose your house due to failure in making payments. Hence, secure this Mortgage payment protection insurance if you are a salaried person and have income mainly from your salary, along with the commitment to fulfill your loan or mortgage obligation.

Hence this insurance policy or scheme is also called Mortgage payment protection insurance scheme.

To explain in detail, Mortgage payment protection insurance scheme is a special type of insurance policy which falls under a more general insurance cover called Payment Protection Insurance. Where Mortgage Payment Protection scheme is specific to covering the mortgage related payments, the general Payment Protection insurance scheme is there to cover all kinds of payments (including mortgage payments), in case you falls sick or meet an accident and are unable to get your salary or income.

Let’s talk about the general Payment Protection Insurance Scheme tomorrow in a next article in detail.

-Buying insurance & need for insurance

Before buying insurance, one must make sure that he analyses his personal situation, with respect to whether he really needs insurance or not. There are a few compulsory insurance that you may have to take, like while buying a car, you must compulsorily have atleast a third party accident insurance. At the same time, there are other insurance schemes which may not be compulsory but optional, like insuring your pet dog, travel insurance, etc.
There are hundreds of insurance policies and type available in the market. Should you take each and every type of insurance? You don't have to take out most insurance but for your own satisfaction and peace of mind, you may like to consider some of the insurance policies. You may like to try the Financial healthcheck link offered by FSA to help you prioritise your insurance goals and requirements.
Insurance firms and agents or brokers selling insurance policies and those providing insurance cover (underwriting the risk) are usually regulated by FSA, or they are authorized agents of a regulated firm. There are some exceptions, for example travel agents that sell travel insurance do not usually need to be regulated by the FSA.
Regulated firms and their agents are put on the registered accounts of FSA and they find a place on FSA register only if they meet certain criteria and standards. While buying insurance policies, always make sure that the firm you use is registered with FSA before giving over your money. If they aren't regulated by FSA and things go wrong, you won't have access to complaints and compensation procedures through FSA. To find out if a firm, broker or agent is registered with FSA, you may Check the FSA Register.
Once you’ve checked the credibility and authenticity of the insurer or firm offering insurance, you can buy insurance in one of the following ways:
• directly from insurers over the phone,
• on the internet through their website and online payment
• by mail, sending them all the required documents and cheque
• you can also buy insurance from other types of firms such as banks, building societies, insurance brokers, financial advisers, mortgage brokers, or supermarkets – more on these in a later article.
First, set your requirements and then get the facts about the insurance policy you buy:
Insurance differs in what it covers and what it doesn't cover (the exclusions). Read the policy summary that the insurance company will give you to find out exactly what you're getting and use it to shop around and compare other policies.
Whatever type of insurance you decide to take out, always:
• ensure the firm is authorised by FSA to sell insurance using Check the FSA Register..
• disclose the full facts when applying for insurance – if you don't, you could invalidate your policy and the insurance company will not pay out in the event of a claim;
• read the policy summary for exclusions – to ensure that you choose the right policy for you; and
• shop around using the documents to ensure you get the best deal for you. Some policies might be cheaper than others, but they may not offer the same level of protection.

Types of insurance

This article provides an overview of the different types of insurance available in the market. The FSA is the regulatory authority and ABI, Association of British Insurers' (ABI) Information represents the interests of UK Insurance industry and maintains information for the customers and the various insurance firms in the UK.
Insurance can be broadly classified into 2 categories:
• Pure Insurance
• General Insurance
FSA regulates the policies and implementation of sales of pure protection and general insurance.

What are pure protection and general insurance?

As the name suggest, pure insurance is the type which is solely taken for a purpose of getting compensated in case of any unwanted incident occurring. Pure protection insurance includes:
• term assurance (like life insurance for security of life);
• critical illness insurance (like refund in case of hospitalization);
• income protection insurance (like loosing a job or business); and
• payment protection insurance – includes elements of pure protection and general insurance (like preventing situations when one fails to make a payment towards a loan taken).

General insurance includes:
• motor insurance (like your car being stolen or meeting an accident);
• household insurance (like house being burgled or losses due to fire);
• some travel insurance (for accidents/losses while traveling overseas);
• health cover; and
• pet insurance.
FSA also regulates the sale of payment protection insurance, which often includes elements of both general insurance and pure protection insurance.

What is not covered by FSA rules?

Along with knowing what is covered by the regulatory authorities and its rules, it is also important to know what is not covered by it. The selling rules of FSA don't cover:
• travel insurance sold in connection with travel arrangements (eg a holiday or a flight);
• the sale of extended warranties on non-motor goods (such as on electrical goods);
• where the person selling the insurance is also arranging the travel or providing the goods.
However, the good thing is that even where the FSA rules don't cover the sale of a policy, they do cover the insurance company providing the policy, providing they are based in the UK and regulated by FSA – if so you will still receive a summary of the policy.