There is evidence suggesting that some homeowners in the UK face challenges getting home insurers to fully pay out for storm damage, leading them to consider borrowing against their properties for repairs. However, it’s important to understand the nuances.
Challenges with getting full payouts:
* Policy exclusions and definitions: Insurance policies often have exclusions for certain types of damage, like gradual wear and tear, or may define storm events in specific ways. This can lead to disputes about whether the damage is covered.
* Evidence and proof: Homeowners need to provide evidence of the storm damage and its cause. This can be difficult, especially for complex or hidden damage.
* Claims handling and negotiations: The claims process can be lengthy and complex. Homeowners may feel pressured to accept lower settlements than they deserve.
Research and data:
* The Financial Ombudsman Service (FOS) deals with complaints about insurance companies. In 2022/23, they received 4,658 complaints about home buildings insurance, including some related to storm damage claims.
* The Association of British Insurers (ABI) reports that the average cost of a home buildings insurance claim in 2022 was £4,228. This suggests that some claims for storm damage may be significant enough to necessitate borrowing.
* A 2022 survey by confused.com (http://confused.com/) found that 18% of UK homeowners would consider borrowing against their homes to cover unexpected expenses, such as storm damage repairs.
However, it’s important to note:
* Not all homeowners experience difficulties with their insurance claims. Many receive full payouts for storm damage.
* Borrowing against your home should be a last resort due to the potential risks and costs involved.
* There are resources available to help homeowners understand their insurance policies and navigate the claims process, such as the FOS and independent consumer groups.
While there is evidence that some homeowners in the UK face challenges getting full payouts for storm damage, it’s important to understand the complexities involved and the resources available to help. Borrowing against your home should be a last resort after exploring all other options.
Need help navigating the above? Get in touch: email@example.com
#remortgage #mortgage #property #mortgagerates #mortgagebroker #propertymarket #homeinsurance #2ndcharge #furtherborrowing #equityrelease
The post is for information purposes only and shouldn’t be viewed as advice. Please seek advice from a mortgage broker if you are thinking of remortgaging your home. A mortgage is a loan secured against your home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE