Review your home insurance to protect against an expected recession

Economic forecasts of an impending recession mean it is vital to conduct a comprehensive review of your insurance policies to ensure they provide sufficient protection.

In financially challenging times, being underinsured – either inadvertently or by cutting corners in an attempt to make savings – could leave you in an exposed and vulnerable position.

Lycetts’ John Murphy looks at the key insurance considerations and how to mitigate the risks.

Revalue valuables

Those who own high value items, such as expensive watches and jewellery, should ensure they are regularly revalued.

High-net-worth possessions may have increased in value since purchase, and the sums they are insured for may no longer reflect their true value.

In cases where the single item price limits set by insurers – the highest price they will pay out for individual items – is exceeded, it may be necessary to have them listed individually on your policy and insured to their full value.

Build on a safe foundation

Homeowners embracing the ‘improve not move’ trend, or extending their properties, should be mindful of the risks of building works invalidating policies.

Contractor liability insurance may not always suffice if anything goes wrong. A contract works insurance policy, however, can provide protection for the property owner and their contractor, the property for the duration of the works, work in progress, building materials, hired-in plant equipment, liabilities, third parties and optional non-negligence cover.

Make renewables do-able

For those looking to make longer-term savings by investing in heat pumps, solar panels or biomass boilers, it is essential to inform your insurer of your plans.

Renewable technology can be expensive to purchase and install, so it needs to be included in the sums insured. You need the security of knowing insurers will pay for any renewable technology that has been destroyed in, for example, a house fire.

Protect against cybercrime

The increasing sophistication of cybercriminals and fraudsters, and advances in AI technology, mean cybercrime is a growing threat.

People take precautions to lower their risk of being victims of ‘traditional’ crimes by installing security cameras or alarms, but cyber security is sometimes an afterthought.

Cyber security insurance can provide effective protection. Additionally, personal information should be tightly guarded, and anti-virus software kept up to date.

Seek expert guidance

By addressing these considerations, you can better protect yourself and your property in the event of an economic downturn.

Lycetts provides expert support and specialist guidance tailored to your unique circumstances. Please contact us and one of the team will be happy to help you.