The Association of British Insurers (ABI) has issued a set of tips for consumers to consider when they are taking out cover.
According to the group, the most important factor to keep in mind is honesty – ensuring that all relevant information is fully disclosed as failure to do so could lead to complications with a subsequent claim.
On the subject of home insurance, the ABI advised that the policy should reflect the cost of rebuilding rather than the current market value of the property, while contents cover should be updated when expensive contents within the household are changed.
However,
life insurance should be only based on the policy holder’s health when it is taken out, with honesty again being of major importance.
Acting ABI director general Maggie Craig said, "In the current economic climate, it is even more important people are not under-insured or put off getting vital cover because they don't understand how insurance works."
She added that anyone with questions about their insurance should talk to a broker or advisor to ensure they are taking out a policy which is specifically suited to their needs.
