How to avoid getting a nasty insurance surprise...and other great money advice

Having insurance brings peace of mind should the worst happen - but it may not be until you actually come to make a claim, that a stumbling block you weren't expecting crops up.

By doing a bit of homework however, you could help ensure you have the right type of cover in place.

Andy Briggs, chief executive officer at Aviva UK Insurance (aviva.co.uk), says: "There is a lot that people can do to help ensure their claims are settled quickly in a fuss-free way, and that's to really understand what their policies do and don't cover, to add to their cover if there is something missing, and to be completely open with their insurer about any pre-existing matters that won't be covered."

Here are Aviva's top tips for consumers, to help ensure there are no nasty surprises and avoid misunderstandings which can crop up when a claim is made...

Home insurance

If you have a standard policy, consider whether you need additional cover for accidental damage to contents, or home emergency and boiler breakdown cover.

Most home policies don't cover gradual wear and tear, the effects of damp and dry rot, or damage to fences, gates and hedges - so make sure your home is well maintained and in good repair. Keep your insurer informed if you make any changes to your home, such as a change in occupancy or building works.

Travel insurance

Make sure you tell your insurer what they need to know about your health, such as any pre-existing medical conditions or tests and investigations.

Try to arrange your travel insurance from the day a holiday is booked - not the day the holiday starts. This will help to make sure you're covered if the trip is cancelled. It's also important to make sure you understand the specific cancellation reasons you're covered for if you need to cancel your holiday.

Motor insurance

Know your policy excess - the amount you need to pay in the event of a claim before the insurance company pays the remainder. When claims are turned down, this can sometimes be because the value of the claim being made falls within the excess stated.

Also, many of us keep possessions lying around in the car. Consider personal belongings cover on your home contents policy to cover your possessions in case they are lost, damaged or stolen while in your car. You may also want to consider installing a dashcam, which can help prove who's at fault if you have an accident. This could help you to protect your 'no claims' discount and excess on your policy.

Life insurance, critical illness and income protection

You could risk your claim being turned down if you fail to provide accurate statements about your health and lifestyle when taking out a policy, as insurers would not have been made aware of potentially relevant information.

Life events, such as starting a family or getting a bigger mortgage, could mean your protection cover no longer meets your needs, so make sure you regularly review it. Make sure you understand what specific conditions are and aren't covered by your policy.

Health insurance

Be aware that you may well not be covered for any medical condition you had before taking a policy out. Different policies offer varying levels of protection - you may want to add on extras, such as out-patient cover or be able to choose where you have treatment.

Finally, always check if you're unclear about your insurance

Contact your insurer and ask them to explain, or speak to your broker or adviser if you have one.

HOW TO... CHOOSE A SUITABLE ESTATE AGENT

Selecting an estate agent can be a daunting task, especially when you're trusting them to market what's probably your most valuable asset.

Mark Hayward, chief executive, NAEA (National Association of Estate Agents) Propertymark, says: "Working with a professional agent who has an in-depth understanding and appreciation for the local and regional marketplace will ensure your property is marketed effectively to the right buyers. Contrary to common thinking, not all agents are the same and some will be more effective than others so it's important that you do your research.

"Picking the right estate agent to market your home can make the whole process run smoother, and also make a difference to the general experience - which should be a very positive one."

NAEA Propertymark has outlined some factors to potentially consider before choosing an agent:

1. Make a shortlist

Start by creating a list of possible agents. Ask family, friends and neighbours for any recommendations. Some estate agents specialise in specific types of properties. Consider checking that the estate agent has taken attractive pictures of all the important features of the houses they are selling, perhaps by looking at other homes they are marketing on property websites.

2. Ask questions and get a valuation

Once you have narrowed down a shortlist, arrange a visit to their office to meet them face-to-face. This is a good time to determine if they are friendly, professional and knowledgeable. Following this, contact a few different agents to provide a valuation and marketing strategy individually for your property and ask them what their advice is for a successful sale. They should be able to provide some local comparisons and reasons to justify the price they have come up with. Ask lots of questions and make a mental note of the agent's punctuality, politeness, knowledge of the process and management of your expectations.

3. What are their fees?

Now, it's time to look carefully at the nitty-gritty of the contract and the agent's fees. As with any contract, check what you are paying for and what is not included. To avoid unexpected costs, don't sign anything that you don't understand and make sure to ask about anything that's not clear.

4. Check industry credentials

Many estate agents are members of trade bodies which apply codes of conduct.

5. See what kind of service is offered

Don't be afraid of asking lots of questions about the service offered. This includes finding out how easy it will be to get hold of your agent, and how often they will update you on their progress. As a seller, you need to be fully involved and informed.

6. Find an agent you can trust

Finally, as a home owner, having an estate agent that you believe in is a must. Whether through local word of mouth, testimonial or internet reviews, start off on a good foot with an estate agent you feel confident in, and who you feel understands your needs.

POUNDNOTES

Financial fact: The choice of credit-impaired mortgages on the market has surged over the past six months, according to figures from Moneyfacts.co.uk. There were 843 deals available in August compared with 725 in February, Moneyfacts said. Charlotte Nelson, a finance expert at Moneyfacts.co.uk, says: "In the past six months, the number of deals has increased by 118 to stand at 843 in August. This is good news for borrowers who have struggled with a poor credit history in the past and had difficulty in obtaining a mortgage."

LOYAL HOME INSURANCE CUSTOMERS HIT WITH EXCESSIVE PREMIUMS, SAYS WHICH?

Loyal home insurance customers can find themselves paying a £75-per-year loyalty penalty for sticking with the same provider, Which? has found. The consumer group found customers with combined buildings and contents policies owned for longer than a year were paying, on average, £75 more annually than new customers.

A spokesman for the Association of British Insurers (ABI) says: "We want everyone to get the best deal in a competitive market, which is why we have launched an industry initiative to help those customers who do not shop around. This will include insurers reviewing the policies of customers who have been on their books for five or more years to ensure they are getting the best deal for their needs."

ARE YOUR SUITCASE CONTENTS WORTH UP TO £5000?

Holidaymakers from London and Northern Ireland carry the highest value items in their suitcases, a UK-wide survey has found. Across the UK, travellers from London had the highest value travel bags and contents, worth £1,604 on average, the survey of more than 16,000 holidaymakers by the AA suggested.

This was followed by holidaymakers from Northern Ireland with £1,565 of goods, the study said. Some people are travelling with possessions worth up to £5,000, the survey found.

CON ARTISTS TARGETING TIMESHARE FRAUD VICTIMS WITH MORE SCAMS

Thieves are targeting people who have already been a victim of timeshare fraud to steal more of their cash, Action Fraud is warning. Across the UK, victims of 'timeshare recovery fraud' reported losing a total of more than £7 million between January and July 2018 - and the average loss was £14,000.

Action Fraud said reports show that fraudsters are taking advantage of previous fraudulent or mis-sold timeshare schemes and are advising victims who have invested in timeshares abroad that they are owed compensation.

They are asked to pay a fee to obtain the money. Once the fraudster has the fee they cut off contact.