Insurance tips from Compass
Published: 15th April, 2022
Published: 15th April, 2022
1. Get your sums insured right; with the cost of new park homes on the increase it’s more important than ever to insure for the right amount. Speaking to your Park is the simplest way to work out what it would cost to replace your home with a brand new one on your Park. Don’t forget to include any decking, skirting, veranda and steps in this amount.
2. You need a tailored park home insurance product. A park home isn’t a holiday caravan, nor is it a bricks and mortar house, so make sure as a starting point you don’t insure on either of those types of product. In particular holiday caravan products will have terms and conditions that are not suitable for a park homes.
3. Resist the temptation to save a few pounds by insuring for less. This could end up costing you thousands in the long run if you have a claim. Under insurance affects each and every claim you make and when you add up the cost those pounds saved won’t be worth it. You should also beware some policies offering ‘blanket’ sums insured as you are still only insured for the amount it would cost to repair or replace, not necessarily the maximum amount of cover advertised.
4. The same goes for choosing between 'New for Old' and 'Market Value'. Insuring on a Market Value basis is the right thing for some people, and on average will mean you pay a cheaper premium, however it also means every claim will have an allowance made for wear and tear. In real terms that means that most claims will be reduced and you might not get the amount you thought you would, or that you need to replace the damage. Market value isn’t really an appropriate cover type for Residential policies.
5. Beware when comparing prices, especially online, not all insurance products are the same and some have restrictions or conditions that could impact you in the event of a claim. Always check your cover before you buy.
6. Understanding the risks your park home is vulnerable to will help you identify which products are not up to scratch. For example, the most common losses we see relate to flood, storm, vermin, escape of water and things like accidental damage.
7. Read the small print, insurance policies always contain exclusions, terms and conditions but these differ from insurer to insurer. Over the years we’ve seen some examples of terms that effectively render the cover useless, like unoccupancy conditions restricting cover when you’re not there.
8. If your park home is a ‘total loss’, cannot be repaired and needs to be replaced there are additional costs and expenses to do so, from disconnection, debris removal, re-siting and reconnection to possible legal and conveyancing costs. Compass cover this as standard and without you needing to add this to your overall sum insured, does your insurer?
9. Nobody buys insurance in the hope they need to use it, but if you do need to make a claim the level of service and speed of response is essential. Will there be someone there 24/7/365 to help you and will your insurer allow your park owner to help you, especially if you are not there when the loss or damage occurs?
10. If you do need to claim then there will be an excess to pay, this is the amount of the claim you have to pay yourself. At Compass we have the lowest excesses in the market at just £50 however check your excess, some insurers impose amounts that run into hundreds and sometimes thousands of pounds.
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Great Western Road
Gloucester GL 1 3ND
Tel: 0344 274 0277
Please mention Park Home Living when you call.