Wave goodbye to underinsurance

• 52 per cent of home appraisals reveal the contents of a property are underinsured

• Direct Line’s SELECT Premier Insurance launches unlimited contents cover

• New policy offers a £10,000 single article limit for fine art and jewellery as standard

• For cycling enthusiasts the policy includes no upper limit on the value claimed for bicycles, as long as they have been locked to a fixed structure 
   

To help prevent households across the UK being underinsured, Direct Line’s SELECT Premier Insurance has launched new unlimited contents cover, ensuring householders are completely covered. If a policyholder’s property was to be damaged in a disaster such as a fire or flood, there is no limit on the total amount paid out to repair the damage or for replacing lost and destroyed goods or furnishings

The new policy is launched at a time when millions of households across the UK have been identified as being at risk of being underinsured. Research from the ABI reveals one in five1 (20 per cent of households) in the UK could be affected.  This issue may be even more prevalent in households in higher income brackets, as 52 per cent2 of home appraisals conducted reveal the homeowner was previously underinsured for their contents, or had underestimated their value upon application for a policy.        

Cover for valuables including fine art, antiques, collection jewellery and watches is included automatically up to £15,000 and this can be increased if required.    Householders will benefit from not having to list individual valuable items worth under £10,000 when they take out a new policy. People have the peace of mind that they do not need to inform their insurer and continually update their policy, or pay any additional fees, if they purchase new items under the £10,000 threshold during the term of their policy. 

Policyholders can specify any valuables worth in excess of £10,000 to ensure they are completely protected.  The new cover stands out from competitors in the marketplace, as policyholders face no inner limit for personnel possessions cover. In addition, personal possessions are covered worldwide under the terms of the policy; they do not need to be insured separately. 
 

Policies also include buildings cover with an unlimited rebuild cost, which means if a property has increased in value during the lifetime of a policy the full cost of reinstating the home will be covered if disaster strikes. Understandably many householders do not know the rebuild cost of their home, so those taking out this policy can relax knowing they are fully covered. 

Nick Brabham, head of SELECT Premier Insurance, commented: “Unlimited cover removes hassle for householders while offering the peace of mind they are fully protected whatever happens. Far too many people are underinsured and could find themselves out of pocket, unable to repair their homes or replace cherished items, if a disaster were to strike such as they were burgled or their home was flooded.  By offering a comprehensive product, with high single items limits for jewellery and art, people can be rest assured they will receive the full value of items if they have to make a claim.  They can also relax knowing they do not need to keep making updates to their cover throughout the duration of the policy.”

As finance expert Martin Lewis3 has highlighted, when people are underinsured they may not only be denied the full value for the goods claimed, if an incident occurs an assessor may penalise them with a discounted settlement because they were not covered for the appropriate value of goods. With unlimited contents cover householders are assured they will never be at risk of receiving a discounted payout for being underinsured.   

In addition, Direct Line’s SELECT Premier Insurance makes no provision for discounted cash settlements if people are claiming for items such as jewellery, so they will receive the full insured value of the item or can choose to have the item replaced.   Under standard polices if a ring or watch is lost or stolen the insurer may provide a discounted cash settlement lower than the insured value of the item.  

Cyclists taking out this cover can benefit substantially compared to a standard home insurance policy.  The policy includes no upper limit on the value claimed for bicycles as long as it has been locked to a fixed structure. 

To make the claims process as easy as possible householders are advised to retain any receipts for items purchased and to take videos or photographs of their home and its contents.  In addition, where jewellery and watches are concerned people are advised to have photographs with them wearing the items with their face is in frame, to keep the purchase receipt and any quality certification such as a GIA report.  

For more information on this please visit: https://www.directline.com/select-premier
 

ENDS
 

Notes to editor

1https://www.abi.org.uk/~/media/Files/Documents/Publications/Public/Migrated/Home/Is%20your%20home%20underinsured.pdf

2 Analysis of 1225 home appraisals conducted on behalf of Direct Line between 2012 and 2017, comparison made with their existing home contents insurance policy or estimated insurance needs upon initial application for a Direct Line SELECT Premier Insurance policy.     Of the appraisals undertaken 51.5% of those surveyed were underinsured on their contents and 83.4% of customers head either buildings or contents under insurance.3http://www.yorkshirepost.co.uk/business/martin-lewis-make-money-from-taking-out-home-insurance-1-7870849)
 

For further information please contact:

Claire Foster

Direct Line

claire.foster@directlinegroup.co.uk

0165 183 1672
 

About SELECT Premier Insurance

Direct Line offers SELECT Premier Insurance to cover homes, cars and valuables of high worth, as well as breakdown cover, pet and travel insurance, all covered under just one policy. When taking out SELECT Premier Insurance, Direct Line will even pay your cancellation charges from your previous policy, making it even easier and affordable to have all your policies under one roof, with one payment plan and one renewal date.

At SELECT Premier Insurance we help you stay in control by offering you a truly personal service. To begin with, one of our accredited insurance advisors will carry out a complimentary individual telephone review with you. Then they’ll give you tailored advice, based on your unique needs, for example, specialist cover for valuables such as fine art and jewellery (without needing to list individual items worth less than £10,000) or for your property portfolio, to ensure you get exactly the right level of cover.

To find out more about what Direct Line SELECT Premier can offer, go to https://www.directline.com/select-premier or go straight through to an expert, not a machine, on 0800 206 2849
 

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line products or get a quote by calling 0345 300 7838 or visiting www.directline.com