New Information Sheet on changes to house insurance
Media Release – 2 July 2013
Insurance & Savings Ombudsman Scheme launches new Information Sheet on changes to house insurance to “sum insured”.
Most house insurance policies are changing the basis of cover for new policies and at renewal. This change is from an unlimited full replacement, based on the size of the house, to a full replacement up to a maximum “sum insured”.
Consumers are now responsible for estimating the costs of replacing their house, known as the “sum insured”. The sum insured is the maximum amount the insurance company will pay in the event of a claim.
“From the calls and complaints we are getting to the ISO Scheme, we know that many people do not understand what the change to a sum insured insurance policy means for them. We have published this new Sum Insured Information Sheet to help people understand what the change means and the factors they should consider when working out the correct sum insured for their property”, says Karen Stevens, Insurance & Savings Ombudsman.
“We want consumers to be well informed, make the right choices and ask the right questions. Complaints often arise when consumers don’t understand the insurance cover they have and what it can do for them.”