In our previous article we discussed excesses, why they are necessary and how they impact on your premium. An excess is payable in the event of a claim and we explained how important it is to understand exactly what you, the insured would be liable for in the event of a claim. An unaffordable excess could impede the claims process resulting in a delay to repair or replace your assets.

In Part 3 of the series we're discussing claims.

A claim is something we all want to avoid. For the insurer it is an unwanted expense that impacts negatively on their loss ratio, for the insured it normally follows a traumatic experience e.g. an accident or a theft. When choosing an insurer you want to try and ensure that the claims process is as smooth and hassle free as possible to avoid prolonging the trauma.

Claims process

The claims process is a critical deciding factor when choosing an insurer. What is the attitude of the prospective insurer towards paying claims? Will the insurer put you back in the same position as before the loss? As that is the basic principal of insurance, the idea behind insuring your assets is to financially prepare you for possible future loss.

To avoid feeling resentment or frustration at claims stage, follow these simple guidelines:

• As the insured party, make sure that the information you supply in the initial contract or telephone interview with the insurer is 100 percent true. Inaccurate or incomplete information will impact your cover and negatively influence your claims.
• Ask the insurer what their claims procedure entails. Newer innovative insurers have paperless processes and provide regular updates on the progress of your claim via SMS and e-mail. Using their call centre or online facilities will save you loads of time and frustration.
• Enquire about the insurer’s turnaround time on claims. The industry standard is five working days depending on the type of claim and repair times.

An insurer’s policy wordings should be written in simple language and most importantly, they should urge prospective clients to provide accurate and complete information when applying for cover.

For more tips on choosing a reputable insurance, look out for the rest of the articles in this series: How to choose an insurer. Next topic: Convenience – can you do it yourself?

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