Are You Insured Adequately for Every Eventuality?

Are You Insured Adequately for Every Eventuality?

We have talked previously in other posts about being prepared for the worst, including structural damage to your home, loss of contents due to flood or fire damage and, indeed, theft. But what if your property was rendered unsafe due to subsidence, heave or through severe and extreme weather, and you had to vacate for a period of time? You may be fortunate enough to have relatives close by who are able to pick you up, but what if you didn’t and you were effectively rendered temporarily homeless?

Home damaged and nowhere to go
We have often seen via the international news the plight of people who have lost their homes as a result of flooding, fire or the ravages of the latest hurricane which swept all before it. Being homeless is something we never consider and, yet, many hundreds, if not thousands, of homes in the UK are damaged every year, necessitating the occupier to leave to seek temporary accommodation and/or shelter. If their buildings and contents insurance doesn't have a clause which covers them for temporary accommodation costs while repairs are expedited, they really are up the creek without a paddle.

Don't count on your local council to jump in and rescue you, because with personal experience I can state categorically you’ll not want to hold your breath waiting. If you're a homeowner, you're on your own, and if you do not have an alternative (as most people do not), you're effectively homeless.

Can you afford two homes?
If you're paying a mortgage monthly and then have to pay for temporary accommodation, which would be the same or approximately the same as your current overheads, would you be able to afford paying for a ‘second home’ if you needed it? On top of any rent you would have to pay, you’ll still have to pay utilities and council tax on a rented property, while still paying mortgage and council tax on your damaged home.

You may be out of your home for a very short period (days or a couple of weeks or so) while structural damage is surveyed and repairs expedited, but what if you were away from your home for several weeks (or months) while it was being repaired? If you do not have a clause in your buildings and contents insurance which covers temporary accommodation, you could end up being financially ruined.

Do you want to be a statistic?
Statistically, you stand an infinitely small chance of finding yourself caught up in the aforementioned scenario, but do you want to be a statistic if the worst SHOULD happen to you. ‘Fate is a fickle mistress,’ as someone once wrote; don't be a victim to circumstances beyond your control when you can BE in control of the aftermath. For the sake of a paragraph in the wording of an insurance policy, is it worth taking the risk?



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