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Accidental damage insurance

If you take out home insurance for the contents in your home you may assume

that they are automatically covered against accidental damage - however,

this is often not the case.

Levels of accidental damage insurance can vary widely between insurance

providers - so here we look at how to get the cover you need.

  What is accidental damage cover?

Generally, accidental damage cover refers to damage that occurs as a result

of a non-deliberate and unexpected external action. This means that you`re

not covered against wear and tear or mechanical failure - instead you`re

covered against unintentional, one-off incidents.

However, the level of cover that applies can vary widely between insurers.

Many insurance companies, for example, only offer accidental damage cover on

electrical items - you may need to take out `extended accidental damage

cover` to protect other items such as your furniture and flooring.

Furthermore, the types of claim that are covered under one policy may not be

covered under another. Damage caused by children and pets for example, may

be excluded from your cover so read the terms and conditions carefully. It`s

also worth examining the policy to see if it will cover damage caused by

pests, such as rodents and insects.

  What about DIY accidents?

Even if you have extended accidental damage cover in place it`s worth

consulting your home insurance provider before undertaking any work to

ensure you are protected depending on the particular job you will be

carrying out. Remember that electrical work will not be covered if it is

carried out by an amateur and you should be careful when cleaning too, as

damage caused by cleaning is often excluded from policies.

One of the most common accidental damage claims is for flooding of the home

caused by a burst pipe - such as if you inadvertently nailed through a pipe.

According to AA home insurance in January 2009, `escape of water` claims

account for one fifth of home insurance claims and as such some insurance

companies exclude this from their policies, so be sure to check the terms

and conditions.

Is there anything else to consider when taking out a policy?

In addition to examining the exclusions and the terms and conditions of the

policy, you should also pay attention to the following:

- New for old/Wear and tear: When taking out contents insurance, your

provider will usually offer either `new for old` cover or `wear and tear`

cover on items. New for old cover provides a brand new replacement for

damaged items; whereas with wear and tear cover a percentage of the item`s

value will be deducted for depreciation.

- Excess: Many potential accidental damage claims could be pointless if you

choose a high policy excess - the excess is your contribution towards a

claim. Though setting the excess at a high level will normally lower your

home insurance premiums you should be careful to keep it at a level you can

comfortably afford.

   What about making a claim?

Should an item in your home suffer accidental damage and you wish to make a

claim contact your home insurance provider as soon as possible. It will

normally ask you to fill out a claims form and, depending on the

circumstances, it may send out a loss adjustor to assess the claim. Do not

be tempted to carry out any repair work or buy a replacement item until the insurer aproves your claim
 

Remember that if you are unhappy with your existing policy you can compare home insurance online using a comparison website. Just remember to compare the terms and conditions of the cover as well as the premiums. Further information regarding home insurance can be found at http://www.gocompare.com