Making a claim

Before you make a claim, read your policy and gather your facts - in writing if possible.

You should keep written records of all conversations including names, dates, times, and details of what was agreed.

You can also take a look at the Fair Insurance Code on the Insurance Council's website. The code applies to all insurance policies bought directly from companies belonging to the Insurance Council, or through a broker or agent. This sets out member companies' responsibilities to you and how to complain if companies don't carry out their responsibilities.

What if you're turned down?

Complain. It may be that your insurer has misinterpreted the facts. What's more, if there's a grey area then a complaint might just push your insurance company to pay out.

One term well worth knowing is: "ex-gratia". It means "out of the goodness of my heart". When the insurance company makes an ex-gratia payment, it pays out but doesn't accept legal liability for the claim. These are cases where it's probably cheaper for the insurance company to pay a bothersome client than to fight the case through the courts.

Unless you can resolve the dispute easily, you'll need to send a formal complaint to the insurance company. A form for this can be downloaded from the Insurance Ombudsman's website.

Our Letters that Get Results may help you if your claim is turned down. These include the following:

• Denial of liability
• Dispute over a claim
• Rejecting an offer

However, there are times when arguing with the insurance company will get you nowhere. In that case, you may want to take your claim to the Insurance Ombudsman. You'll need to get a "letter of deadlock" from the insurance company, so that you can then lodge a complaint with the Ombudsman.

Prevention is better than payout

Perhaps the best way to avoid being turned down for a claim is make sure you don't have to make one in the first place. One of the best preventive measures you can take is to keep your house well maintained.

Consumers are often shocked to find they are not usually covered for rotten walls, floors or cupboards. This type of damage, which occurs gradually, is limited or excluded from policies. Yet it is one of the biggest causes of house and contents claims. 

What we claim for

Knowing the types of goods that most people lose or damage - and how they do this - is the first step in preventing loss.

The most commonly claimed items under household-contents claims are:

• spectacles, sunglasses and hearing aids
• jewellery
• appliances such as TVs, stereos, playstations, and computers
• cameras
• CDs and DVDs
• cash
• power tools
• mobile phones.

The main causes of "loss" (from most to less common) are:

• glass breakage
• gradual damage such as water damage
• water damage from burst pipes, leaking roofs, or leaking water cylinders
• burglary
• storm damage
• carpet damage from spills such as red wine, coffee or nail polish
• lost items
• freezer breakdown
• accidental damage such as dropped appliances, holes in walls, or damaged doors.

Burglary

Despite its prominence in the media, burglary isn't top of the list - although you're likely to suffer a greater loss from burglary. To reduce the risk, record the serial numbers of your possessions and photograph your valuable items.

Burglars are deterred when there are stickers on the house saying serial numbers have been recorded. You can find out about this from the Insurance Council's website, including a downloadable serial-number recording form. Serial numbers and photos make claims processing much easier.