What is a package policy in general insurance?
A single policy that bundles multiple covers needed by a similar type of policyholder (e.g., household, travel, SME trades).
Why do insurers favour package policies?
Homogeneous risks make claims more predictable, allow standard wordings, reduce admin costs, and enable lower premiums.
What are the two settlement bases for irreparable household items?
Indemnity (market value with wear and tear deduction) and New for Old (brand‑new replacement, with some exceptions like clothing).
What should the buildings sum insured represent under household insurance?
The full rebuilding cost at the time reinstatement is completed.
How do excesses typically work on household policies?
Either one overall excess or different excesses for specific perils (e.g., escape of water, storm, subsidence).
What property is included under buildings cover?
The dwelling’s structure plus garages, sheds, greenhouses, outbuildings, pools, courts, walls, gates, fences, and paths.
Which perils are commonly excluded if the home is unfurnished or unoccupied for 30–60 days?
Riot, malicious damage, theft, escape of water, and accidental glass/sanitary breakage (fire/lightning/explosion/earthquake usually remain).
What are key exclusions under storm or flood for buildings?
Frost, subsidence/ground heave/landslip, and damage to gates, fences, or hedges; an excess always applies.
What does impact cover under buildings include and exclude?
Impact from vehicles, aircraft, animals; may have an excess for the insured’s vehicles/animals; pet damage usually excluded.
What is notable about subsidence, ground heave or landslip cover under buildings?
A substantial excess (often £1,000+ or a percentage) applies; several exclusions (e.g., faulty workmanship, normal settlement).
What does loss of rent/alternative accommodation cover provide?
Ground rent and temporary accommodation when the home is uninhabitable after an insured peril, usually up to 10–15% of buildings sum insured.
What does the accidental damage extension on buildings typically cover?
Incidents like drilling through pipes, nailing through electrical cables, or putting a foot through a ceiling.
What are contents in household insurance?
Household goods and personal effects of the insured/family; schedules show limits; perils broadly mirror buildings.
What limits commonly apply to valuables under contents insurance?
Single item limit (e.g., 5% or £1,500) and a total valuables limit (often around one‑third of contents sum insured, unless specified).
Name typical automatic inclusions within the contents section.
Temporary removal, clothing and personal effects, accidental breakage (mirrors, glassware), and loss of rent/alternative accommodation.
What are common optional extensions to contents cover?
Accidental damage to entertainment equipment, accidental damage during removals, loss of metered water/oil, lock replacement, seasonal increases, students’ effects.
What are typical liability limits under household insurance?
Around £2 million for general liability per claim; at least £10 million for employer’s liability (domestic employees).
How do liability covers differ between buildings and contents sections?
Buildings covers owner’s liability and Defective Premises Act; contents covers occupier’s liability, personal liability, and employer’s liability for domestic staff.
What does the money and credit cards extension typically include?
All‑risks for money (cash, vouchers, tickets) and cover for stolen/misused cards, with limits and prompt reporting requirements.
What does the personal possessions extension cover?
Items regularly taken outside the home (e.g., jewellery, phones, laptops) on an all‑risks basis; higher‑value items must be specified.
What are typical conditions and limits for bicycle cover?
General limit per bike (e.g., £500–£1,000) unless specified; theft often excluded unless locked or stored securely; racing often excluded.
What costs are typically covered under identity fraud protection?
Admin fees, loss of earnings for meetings, notarising documents, subject to an overall limit (often around £12,000).
What does the freezer contents extension insure?
Deterioration due to temperature change (e.g., power failure) or refrigerant leaks; limits and variations apply by insurer.
What does the legal expenses extension cover and what is a typical limit?
Recovery costs, civil and prosecution defence, employment disputes; often up to £50,000, with standard exclusions (e.g., fines, business disputes).
