When you buy Home Insurance, you are protecting one of your biggest assets. But there are also risks in how you set up your policy. If a few key things are not right, a future claim could be reduced or even refused.
This guide explains the main risks to watch out for when choosing and setting up your home insurance, and what you can do to avoid them.
This blog is for general guidance only and does not take account of your personal circumstances. Always read your Policy Schedule and Policy Booklet to understand exactly what is and is not covered.
1. Risk of being underinsured
Underinsurance is one of the biggest risks. It happens when the amount you insure for is less than what you would actually need if the worst happened.
Your Buildings cover should reflect the full cost of rebuilding your home, not its market value.
Your Contents value should be enough to replace all your belongings as new, including everything in every room and in the garden.
If you under‑estimate these amounts, any claim settlement may be reduced because you are underinsured.
Your policy is index linked, which means at renewal we increase the amount insured in line with recognised cost indices for rebuilding and household goods. But index linking only works if you start with the right values and it will not correct an amount insured that is too low to begin with.
How to reduce this risk
- Walk room‑to‑room and estimate what it would cost to replace everything as new for your Contents.
- Review both figures at each renewal in your Statement of Fact and Policy schedule, especially after renovations or big purchases.
For more help with setting the right values for your buildings, contents and specified items, please refer to your policy wording or visit our blog post.
Risk of not keeping your home secure and well maintained
Your policy expects you to take reasonable care of your property and keep it in a good state of repair. It is not designed to cover problems caused by poor maintenance or everyday wear and tear.
We will not cover loss or damage caused by:
- Lack of or poor maintenance
- Wear and tear
- Faulty workmanship
- Failure to fix a known issue
For example, issues that could have been avoided by routine maintenance (such as re‑sealing a shower) may be treated as wear and tear, not as an insured event.
Security is also important. To keep your cover in place, you must:
- Keep all doors and accessible windows locked when you leave your home.
- Use your alarm whenever you go out and when you go to bed (if you have one).
- Wear, or keep in a locked safe, jewellery, watches or other specified items worth £15,000 or more individually or £25,000 or more in total, with the safe keys removed.
If these requirements are not followed, theft or attempted theft claims, especially for high‑value items, may not be covered.
How to reduce this risk
- Keep on top of basic maintenance and fix small issues early.
- Always lock doors and windows and use your alarm if fitted.
- Store high‑value items securely and keep valuations and receipts safely elsewhere.
3. Risk of not telling us when things change
You must tell us immediately about any change that may affect your policy. If you do not, we may:
- Cancel your policy or declare it void (as if it never existed)
- Change the terms of your cover
- Refuse to deal with a claim or reduce the amount we pay
Changes you need to tell us about include, for example:
- Moving home or changing your address
- Building works, structural alterations or demolition
- An increase in the number of bedrooms
- A significant increase in the value of your contents or the rebuild cost of your home
- Your home becoming unoccupied, or not being lived in regularly
- Using your home for business (other than clerical work)
- Criminal convictions (other than driving offences) for you, your family, or anyone living with you
- Someone outside your family moving in
- Any part of your home being boarded up
How to reduce this risk
- Contact us on 0330 331 0749, Monday to Friday between 09:00 – 17:30, as soon as you plan or experience a change like this.
- Do not wait until renewal – we need to know when the change happens.
4. Risk of assuming everything is covered
No insurance policy covers every situation. There are specific limits and exclusions you should be aware of. For example:
- Certain items in the garden or “in the open” are only covered up to set limits, and some risks (like storm or flood) may not apply to things left outside.
- Damage caused by wear and tear, poor maintenance, pets, vermin or faulty workmanship is excluded.
- Cover may be restricted if your home is unoccupied for longer than the period shown in your Schedule.
How to reduce this risk
- Read the “What is not covered” parts under each section in your Policy Booklet.
- Pay special attention if you keep items outside, are away from home for long periods, or use your home in any non‑standard way.
5. Risk of not understanding limits, excesses and other cover
Your policy includes:
- Amount (Sums) insured – the maximum we will pay for Buildings and Contents, as shown in your Schedule.
- Section limits – for example, limits for contents in the garden, money, theft from outbuildings, business equipment and high‑risk items.
- Excesses – the amount you pay towards each claim, which we deduct from the claim settlement.
If the same loss is covered by another insurance policy, we will only pay our share of the claim.
How to reduce this risk
- Check your Policy Schedule for your amount insured, specific section limits and excesses.
- Make sure you are comfortable with the excess shown on your Policy schedule, which is the amount you would pay if you needed to make a claim.
6. Risk of not being able to prove what you owned
When you make a claim, we may ask you to prove ownership and value of items. If you cannot, your claim may be reduced or refused.
You are advised to:
- Keep receipts and valuations in a safe place (not with the items themselves).
- Take photos of valuables, jewellery, paintings and other high‑risk items.
- Keep valuations up to date – for some specified items, valuations must be no more than three years old.
- Provide any evidence we reasonably ask for.
How to reduce this risk
- Keep a simple record (photos + receipts) of your key items.
- Update it when you buy or sell significant belongings.
Conclusion: simple checks that make a big difference
The main risks when buying Home Insurance are:
- Insuring your home and contents for too little.
- Not meeting key security and maintenance requirements.
- Forgetting to tell us when things change.
- Assuming everything is covered without checking the limits and exclusions.
Taking a little time now to check your values, keeping your home in good condition, and understanding your responsibilities can make a big difference if you ever need to claim.
More guidance: where to look in your documents
For more detail and examples, please see these parts of your Policy Booklet, alongside your Policy Schedule:
- “Making sure You have the right cover” – how to set the right Buildings and Contents values and how index linking works.
- Section B – Your Buildings cover – what is and is not covered for the structure of your home.
- Section C – Your Household Contents cover – what is and is not covered for your belongings, including underinsurance rules and limits.
- Section G – Contract Conditions – your responsibilities, including keeping your home in good repair and telling us about changes.
- Section I – Policy Exclusions – important events and situations that are not covered under the policy.
If you are unsure how any of this applies to your own situation, please contact our UK‑based team on 0330 331 0749, Monday to Friday between 09:00 – 17:30 before you buy or renew. We will be happy to explain your options, so you can choose cover that works for you.