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5 insurance mistakes that could cost you thousands

By Victoria Bischoff

We're all guilty of making silly mistakes from time to time - but when it comes to insurance, even the smallest of slip-ups could have catastrophic consequences…

It's all very well having insurance cover in place, but if you leave your front door unlocked, keys under the mat and the kitchen window open, don't be surprised when you're refused a payout!

Many people unthinkingly put their property at risk every day and as a result are unlikely to be protected when something goes wrong.

Make sure you avoid these five foolish insurance mistakes!

1. Leaving your keys under the mat

Since the dawn of time, people have hidden their house keys in the letter-box, buried in a plant plot or behind a loose brick.

Yet, no matter how imaginative you think your hiding place is, you can be certain a burglar will know where to look.

If a thief were to enter your home with a key you had carelessly left, not only will you suffer the heartache of having your prized possessions stolen, you could face serious problems when it comes to making an insurance claim.

This is because a burglary of this kind is likely to count as 'unforced' and your insurer could claim you acted negligently by failing to secure your property properly.

Similarly, if you go out and leave your windows open, your insurance company is again unlikely to cover you for any loss you may suffer.

Therefore, ensure you always check your windows are locked before you leave the house and if you want a spare key to be readily available for any forgetful occasions, it might be wiser to leave a set with someone you trust.

2. Making your absence obvious

If you're planning to go away on holiday, it is important your house does not appear empty.

For example, leaving your post to pile up, milk on the doorstep and papers sticking out of the letterbox are all classic indicators you are not home and could tempt an opportunist thief passing by.

Similarly, never leave a note on the front door to the milkman with the dates you're away or announce your holiday on social networking websites such as Twitter, as this could put your property at risk of being targeted.

Even football stars have been targeted by thieves who know when they are out of town playing away games and have found out via the media where they live.

If your home is burgled as a result of careless behaviour, in addition to the upset you will experience from losing your belongings, your insurance company could refuse to pay out.

This could leave you hundreds, if not thousands of pounds out of pocket.

Here are three simple ways you can avoid advertising your absence to potential thieves.

  • Ask trusted relatives to collect your mail on a regular basis.
  • Remember to cancel the milk and papers while you're away.
  • Never leave your curtains closed and consider installing lights on timers to help give the impression you are home.

3. Leaving your keys in the ignition

With winter on its way, we will soon be facing freezing, frosty mornings. But, be aware that with the chilly weather come the car thieves.

Opportunist thieves roam the icy streets looking for vehicles left unattended while their owner warms up the engine and runs back in the house to grab something they've forgotten.

However, it's vital you never leave your car with the keys in the ignition and the doors unlocked, even if you only turn your back for a second.

This is because leaving keys in an unattended vehicle is usually specifically excluded from car insurance polices.

If your car is stolen as a result of such behaviour, your insurer is likely to consider this negligent and refuse to pay out a penny.

4. Leaving your belongings unattended

In this day and age, you simply can't trust anyone. Therefore, it's essential you never leave your valuables lying around in public places.

If you are careless with your belongings, you run the risk of being refused a payout from your insurance company should something happen.

For example, if you leave your bike unlocked, your bag on the beach or your brand new iPhone on the bar, you are likely to struggle to successfully claim on your insurance in the event something is damaged or stolen.

Therefore, always take the same amount of care with your property that you would take if you were uninsured. This should help to reduce the chance your insurer will dispute your claim - as well as lower the risk of disaster occurring in the first place.

5. Not having insurance

Perhaps the silliest mistake of all is to go without insurance all together.

Insurance policies such as home insurance, life insurance and car cover are essential financial products and could protect you from a serious financial disaster if something goes wrong in the future.

When you take out an insurance policy make sure you always read the small print carefully before you sign on the dotted line.

Remember, if you fail to comply with the terms and conditions, your insurer is well within their rights to refuse to pay out when you need it to.


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