Investment Property Insurance

No insurance company likes paying out money. And it certainly won't hand over more than it has to. What you need to do when you're making a claim is make sure they've no choice but to pay you what you're due. Here's how you do it...

1. Buy the right insurance from a reputable insurer. Start by writing down exactly what cover you want, including any extras and anything out of the ordinary. Few people do, and that's one of the reasons why they have problems later on - they're not actually insured for what they want! Then shop around. Most people just automatically renew an existing policy, go to the biggest insurer advertising and/or take a bog-standard policy that may not match their needs. That's a recipe for disaster! Your local insurance broker is a useful intermediary as they have access to many insurers (but check how many and compare brokers). Go for an insurer that belongs to the Association of British Insurers (020 7928 4488) and is involved with the Insurance Ombudsman Scheme (020 7600 3333). If you have a problem when claiming, you can then appeal. That in itself can get you your payment. Many insurers won't want all the hassle.

2. Spot suitability and potential problems by studying the small print. An insurance policy's not just about that annual premium, or whether you can pay by low-cost instalments. It's actually a deal between you and the insurer - you pay this and, subject to the small print, we'll pay that if such-and-such happens. The small print contains the legal framework of the deal. Look closely and you will find get-out clauses - you need to notify in a certain time-scale, you need to keep receipts to make claims etc. Be aware of these. When an accident happens, you'll not instantly think of getting receipts for associated costs; but you may need to. You also need to apply the 'what if?' scenarios to that small print. If there's anything you don't understand, ask for clarification - and in writing as you'll never prove a verbal comment was made. If you're not covered exactly as you want, ask for extra cover for an additional cost.       

3. Make sure you can claim fully - begin by answering honestly all the questions on the proposal form. You should also complete it yourself. Many people leave it to the broker and then simply sign the box without checking all the answers have been given or are correct. If the form is incomplete or incorrect, it could well invalidate any claim you make later on. It's your responsibility to make sure information is 100% and correct. Provide any 'material facts' too - these are any facts that might affect insurability, premiums etc. Examples include previous claims, insurance cancellations and anything else that might be a factor. If in doubt, mention it in writing. If or when you do claim, do it in line with the small print of the insurance policy; for example, notifying the insurer by phone as soon as you can etc. Don't give the insurer any chance to wriggle out.             

4. Get your claim processed promptly - be politely presistent. Most claims are not processed as quickly as claimants would like. It can be especially difficult if you are waiting on that money to buy replacement goods or whatever. The problem is that most claims are handled at a low level - and there are lots of them! This problem is worse in the summer when staff are on holiday, and claims can be higher. The solution is to make a nice nuisance of yourself. Call, speak to the person handling your claim, ask when it will be dealt with and then call back to check progress. Keep calling. You can be as nice as pie, but be persistent. The insurance clerk is only human and should deal with yours more quickly to stop any more irritating 'phone calls from you.

5. Resolve problems fast - go straight to the Managing Director. If your claim is anything out of the ordinary, it's going to sit at the bottom of the clerk's in-tray before moving slowly up through the insurance company. You won't want to wait that long. Don't waste your time talking to supervisors and section heads - they're often little more than glorified clerks working part-time shift patterns. Find out the name of the Managing Director and go straight to them. Again, you need to be polite but persistent. Most Managing Directors won't want to be troubled endlessly by what they consider to be trivia - and they are likely to pass this on with instructions to sort it fast!  Bottom line advice? If you can, turn up in person and ask to see the Managing Director. Say you're happy to wait in reception until the matter has been resolved. One dissatisifed claimant got instant results by saying they'd stand outside the offices handing out leaflets of complaint to everyone coming in and out.