There were 12 named storms in the UK between September 2023 and the end of August this year, compared to just two the previous year.

Are we going to squeeze in an insurance angle here? You bet.

Some of the most common claims for home insurance are escape of water, which can often happen in extreme temperatures (the dreaded winter burst pipes), and storm damage – flying debris, falling trees and so on. We’re entering prime ‘trampoline through the patio doors’ season.

The natural assumption is that your home insurance will cover you should the worst happen. If you’ve taken the time to make sure you’re adequately covered, then you’re probably right.

However, how many of us actually check that our building and contents cover is properly set up? Not too many, if the data is to be believed.

Nearly one in four (24%) home insurance claims are rejected, according to Financial Conduct Authority data, across building and contents. That rises to almost a third (68%) of claims knocked back for buildings only.

Part of the issue is underinsurance. Something like 70% of households are underinsured, according to specialists Rebuildcostassessment.com – ie the cost of replacing items or repairing property would come to more than the expected pay-out from your insurer. On average, policies only cover about a third of those costs.

You should be aware of something called the ‘average clause’ in insurance contracts. Essentially it means the insurer won’t pay out a sum greater than the sum for which you’ve insured your building. That seems reasonable, but what most people don’t understand is this also applies on average for any claim.

So if you’ve insured your property for £500,000, but a total rebuild would cost £1m, you’d only get 50% of that total. You’d also only get 50% of any other claim on that policy – eg if you claim for £20,000, the most you could expect to receive would be £10,000.

They key point to remember is a rebuild or extensive repairs; what insurers call reinstatement values. A lot of people assume that your home’s market value (what it would sell for) is the same as the reinstatement value. It rarely works like this.

The cost of building materials has increased wildly in the last few years, largely because of things like Covid, Brexit, conflict and other international market factors. Then there’s labour to consider, as well as the cost of removing debris and waste, legal fees, architects, and VAT.

In many cases, incidents like flood, storm damage and fire mean you could also be looking to your insurer to cover the cost of hotel or other temporary accommodation while your home is repaired or rebuilt.

Even if you were properly insured before, you might now be underinsured because of factors which are nothing to do with you. The cost of reinstatement could be well in excess of your home’s market value, especially if you have a high value or unusual home.

Yes, the chances are you’ll never need to worry about this. But if the day ever comes, then it’s well worth making sure your insurance cover will give you the help you need – and won’t leave you stranded in a storm.

Blackford always takes time to get to know you and understand your individual insurance requirements. Our insurer and policy recommendations are based on your individual circumstances and what we think is in your best interests.

For more information contact Michael.Gregson@blackfordinsurance.com.