Extended warranty or household cover?

Oct. 10, 2012 - PRLog -- Thousands of Brits assume gadgets and personal possessions are adequately covered by their home insurance contents policy, however, research* by Assurant Solutions indicates they could be wrong.

One in five consumers surveyed believe that gadgets such as laptops, tablets and smartphones were covered under their home insurance policy. However, when asked for specifics about coverage, two-thirds assumed that accidental damage away from home was included on their policy, and six in 10 believed theft away from the home was covered. Many home insurance policies, however, do not provide this type of protection.

Survey results also indicated that one in 10 consumers believe they would be covered if their possessions were lost or stolen when overseas, and 13 percent believed that they would be able to get a replacement or repair if their gadget suffered a mechanical breakdown. Again, this cover is not always included in standard home contents insurance policies.

Simon Harrison, Sales Director, UK & Ireland for Assurant Solutions, comments: “Consumers hold numerous misperceptions about home contents insurance. However when something happens to their gadgets or other possessions like jewellery, for example, it is then they realise they could be stuck with a big bill for a repair or replacement.”

To help retailers educate their customers about the benefits of home insurance versus specialist insurance, Assurant Solutions offers the following information:

•   Accidental damage is not always included on home insurance policies as standard, and may add a additional amount to the premium
•   Possessions may only be covered up to the front door, and if they are covered outside the home, it may only be limited to the UK and so customers may not be covered whilst on holiday
•   Your customers might pay more depending on where they live. Postcodes are a key underwriting factor when it comes to home insurance and if the insurer deems an area to be risky, your customer may pay the price. Warranty insurance has a fixed premium that stays the same, no matter where they live – whether in Land’s End or John O’Groats
•   Home insurance policies may have higher excesses than the gadget itself costs, so it may not be worth making a claim in the first place
•   Most home insurance policies impose a limit on a single item, so an expensive gadget or piece of jewellery might only end up being partially covered
•   Replacement for lost or stolen items may affect a no-claims discount on a home insurance policy and the potential increase in premium on renewal might be more than the cost of specialist cover

Harrison continues, “It is important that retailers help their customers to understand whether their new gadget could be insured under an existing policy. We suggest retailers ask their customers to think about where they are likely to take it and how much they would be out of pocket if it were lost, stolen or damaged. For that additional peace of mind could be worth considering specialist insurance policies, as there are no excesses to worry about and, more importantly, claims will not impact future home insurance premiums.”

Assurant Solutions issues customised plans for consumer electronics, appliances, jewellery and other products that extend well beyond the manufacturer's warranty. The plans provide customers with the assurance of knowing their products can be repaired or replaced.

-ends-

*The research was carried out for Assurant Solutions by OnePoll between 01.05.12 and 03.05.12 amongst 2000 UK adults.


For further information please contact:
Spotlight Communications for Assurant Solutions:                    
Sarah Whelband: Direct:  +44 (0)1252 781636
Mobile: +44 (0)7525 211473                                
Email:  sarah@spotlightcomms.co.uk                              

Assurant Solutions
Assurant Solutions businesses develop, underwrite, market and administer specialty insurance including mobile device protection, extended service contracts and other risk management solutions through collaborative relationships with wireless carriers, electronic goods and household appliance manufacturers, retailers, leading financial institutions, automobile dealers, funeral homes and other entities. Assurant Solutions serves customers and clients in Europe, North America, the Caribbean, Latin America and Asia. With operations in 25 locations worldwide, the Assurant Solutions executive offices are based in Atlanta, in the United States.

Assurant
Assurant Solutions is part of Assurant, a premier provider of specialised insurance products and related services in North America and select worldwide markets. Its four key businesses -- Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits -- partner with clients who are leaders in their industries and build leadership positions in a number of specialty insurance market segments worldwide.
Assurant, a Fortune 500 company and a member of the S&P 500, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has approximately $27 billion in assets and $8 billion in annual revenue.
www.assurant.com.