Costa Blanca News

The risks of getting your insurance details wrong

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By Vicky Shaw, PA

Insurance provides a financial lifeline just when you need it most - but giving incorrect details when taking out policies can lead to costly mistakes.

Some customers may have lost out on their claims, in some cases having to pay tens of thousands of pounds due to not being fully covered, according to the Financial Ombudsman Service (FOS).

The service, which resolves complaints from consumers about financial firms, is highlighti­ng the problems people can face when they find that they are not fully insured for what they need.

Hundreds of people bring complaints to the ombudsman service every year because they are not satisfied with how their insurer has dealt with a claim where not being fully insured, also known as underinsur­ance, is an issue.

Caroline Wayman, chief ombudsman and chief executive of the Financial Ombudsman Service, says: "The Financial Ombudsman Service hears from hundreds of people every year who have had problems with not having the right level of insurance for their needs. The implicatio­n of being underinsur­ed can be costly, so it's important that customers give their insurer the right informatio­n when taking out cover.

"Businesses need to ensure that they ask clear, specific questions - and treat customers fairly when claims are made. If you've had a problem with your insurer and aren't happy with how it has dealt with your complaint, get in touch with our service and we'll see if we can help."

To avoid costly mistakes, the FOS has these tips:

Do

Read the small print to make sure you know what your policy does and doesn't cover.

Talk to your insurer if your circumstan­ces change.

For buildings and contents insurance, get a full estimate of the value of the items you want to cover.

Don't

Always go for the cheapest deal - as this may not necessaril­y cover what you want.

Assume you need the same level of cover year after year.

Be tempted to not give your insurer the full informatio­n.

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