More than one in ten Brits (16 per cent) consider that home maintenance is covered under their home insurance policy, according to new research from Legal & General’s general insurance business as part of its Home Care and Repair Report.
The research revealed that the majority of Brits (94 per cent) do recognise the importance of home maintenance. Three quarters (75 per cent) said that they carry out maintenance checks in their home at least once a year or more. However, not everyone is on top of their home care, as 15 per cent of the population never carry out any home maintenance checks and 8 per cent are delaying basic home maintenance repairs because they feel they are too expensive to fix.
Legal & General’s Home Care and Repair research also highlighted that:
One in ten people (10 per cent) said they don’t understand what maintenance means in their insurance policy.
One fifth (20 per cent) of the population mistakenly think they can claim on their insurance to check or replace roofing.
Over one in ten people (12 per cent) wrongly believe they can claim on their insurance to treat damp on an interior wall.
There is also a small, but significant number of people who said that they don’t know what is covered under their home insurance cover. Almost one in ten people said they have no idea what is covered by their home contents insurance (8 per cent) and a similar number (9 per cent) do not know what is covered by their buildings insurance policy.
So although it is great news that customers understand the importance of home maintenance, Legal & General believes that there is more that the insurance industry could do to improve consumer understanding of the consequences of not carrying out regular home maintenance.
Legal & General, like the majority of insurers, requires customers, as part of providing the home insurance cover, to take responsibility for ensuring that their home is in a good state of repair. So, if any damage is caused, it is fixed as soon as possible so it doesn’t cause bigger problems. For example, if a roof tile should become dislodged, it should be repaired as soon as possible so rainwater does not start to leak into the property and then damage the building or contents – or if left too long, potentially bring down a ceiling. Ensuring regular checks are made and any problems identified are fixed as soon as possible means that customers’ home buildings and contents insurance continues to remain valid.
Mark Holweger, director for Legal & General’s general insurance business commented, “Our research shows that while consumers do appear to know the importance of carrying out regular home maintenance, they don’t necessarily really understand the important implications there might be for their home insurance cover if regular checks and repairs are not made.
It’s fantastic that 24 per cent of those surveyed said that they understood what is and isn’t covered under their home insurance cover. However, in our experience, when it comes to customers actually making a claim, they aren’t as clear on the detail as they thought. Unfortunately, this lack of understanding means that insurers do receive a number of claims that are not valid. This can lead to customers being confused and often disappointed and dissatisfied if their claim is turned down. This is why we believe it’s important to do more to help our customers and our intermediary and business partners’ clients have a better understanding of their policy cover.
As a responsible insurer, Legal & General wants to pay all valid claims quickly and efficiently. So we hope the Home Care and Repair Report will help improve consumer understanding so they have a better appreciation of the value of the cover they do have and the quality of service and support they receive if they should have a valid claim.”
Home insurance is there to help people should an unexpected event happen such as a fire, flood or burglary and give customers’ peace of mind that there is some financial support in place and expertise available to help resolve potentially horrible situations. Insurance is not a maintenance contract for customers to claim for any damage to their home. For example, the damage caused because of the gradual wear and tear to roofing so that with age the roof begins to leak or damp patches appear on interior walls will not be covered. Roofs need to be replaced over time and so if it starts to leak then it needs to be replaced or fixed as soon as possible to stop any further damage. If a customer should claim for damage where it is clear on inspection that the roof needed to be replaced or fixed due to wear and tear, then the claim will be declined. This is why it is so important that people understand their responsibility to keep their home in a good state of repair.
Holweger continued “In a period of economic uncertainty, customers may be tempted to avoid and delay basic home maintenance tasks to save money. So insurance brokers and intermediaries need to ensure their customers really understand the consequences of not doing regular checks or neglecting essential repairs. Not keeping a home in a good state of repair could result in bigger repair bills and could even see the value of the property drop substantially. Nobody wants to be in that position but trying to use a home insurance policy to help fund repairs is not a solution.”
Legal & General has prepared a checklist for intermediaries to use with their clients to help them understand what regular home maintenance tasks should be carried out to help care for their homes so they continue to be in a good state of repair and their insurance cover in place for any emergencies.
Always take care when undertaking any DIY task, particularly if it’s one that you are not fully familiar with, as you could injure yourself or those around you. Do always seek professional help, when required.
