Message To Policyholders

Dear Policyholder

Thank you for taking the time to visit our site, which I hope has given you some insight into our approach to claims and our client service.

An insurance policy is a different form of contract to any other into which you may enter. It relies on the unique doctrine of 'uberrima fides', utmost good faith. In agreeing to accept the risks you place with them, the insurer requires you to be open, honest and straightforward about the things you tell them, so they may properly consider the risks; and they also expect you to take care to insure for sums adequate to cover those risks, and thereby to pay the appropriate premium.

Insurance is a serious business, but many regard having policies as a necessary evil, and look only for the best premium they can obtain - without too much concern as to whether the cover is entirely appropriate for their needs, or whether they have fully disclosed the information asked of them at the time of proposal. It is this lack of care, so untypical of most of us when we deal with other types of contracts - for example when buying a house or considering the terms of our employment - which leads to problems at time of claim. That said, even those who take particular care over insuring for the right amounts, and disclosing all the relevant information, frequently find their claims, especially the larger ones, are fraught with difficulty.

After you have notified a claim, what you expect to happen, when it happens, and how much you will be paid, is often very different in reality to the perception you had before the claim occurred. Fires and theft losses are automatically viewed by the insurers with suspicion; subsidence claims can take an eternity to settle; and your view of what is covered by the policy may be distinctly at odds with the view of the insurer or their loss adjuster.

You can minimise the problems you might have following a claim if you follow my

Top tips to Policyholders:-

• Be honest and as accurate as you can when answering questions for a proposal for insurance. Take particular care when insuring over the telephone with a 'direct insurer'. You do not have the same time to think about and answer questions as you would have when sent a form to complete.

• The cheapest premium, or even the most expensive, will not necessarily provide you with the most appropriate cover for your needs. Check and compare what is on offer.

• Carefully consider the amounts for which you should be insured, and do not shy from seeking advice from a broker or agent, or a specialist valuer. Businesses should also seek guidance from their lawyers and accountants if they do not have in-house expertise. Underinsurance will often attract penalties on claim payments.

• When you receive your policy, and renewal papers, take the time to thoroughly read and digest for what you are covered, and as importantly, your obligations to the insurers as your part of the contract. Non-compliance with policy terms and conditions may lead to rejection of a claim or cancellation of your policy. Ask your broker, agent or insurer to explain anything you do not understand.

• Do not bother making small claims, i.e. those under £1,000, unless it is as a result of someone claiming against you. For example, 3 claims for say £300 each, will classify you as a poor or suspect risk, possibly increase your premiums at renewal, and cause you greater difficulty when you have a more serious claim.

• When making a claim, honesty is always the best policy. Inflating a genuine claim because you think it will get cut down may taint your claim with dishonesty. If you think you are being treated unfairly or unreasonably, all insurance companies have complaints procedures. Do not be afraid to use them.

• Be wary of replacements and repairs imposed by insurers. They do not always satisfy your full entitlements; and remember, the reason insurers like them is because it costs them less and they hate paying you cash.

• If you have a claim for £10,000 or over, engage a claims specialist. Even if you think you have the requisite expertise to deal with your own claim, you will be unable to do so objectively.

Suffering misfortune may be a stroke of bad luck, but successfully recovering indemnity after a claim is not about luck. It is about being able to understand and interpret the terms of the policy and scope of cover; the claims procedures as practiced by the industry; professional presentation; and not least, skilled negotiation.

Yours sincerely

STEVEN S NEWMAN FRSA

BEECROFT SONS & NICHOLSON