Five problems encountered by consumers when buying home insurance
13th December 2021
There are several factors that can make it hard to find home and contents insurance. Ceta Insurance asked their experts to break down three fictional applications from movie characters and explain how they would be viewed by insurers.
Home insurance experts Ceta Insurance have a long track record at helping people find cover for both standard and non-standard types of properties. Non-standard is a perceived extra risk in the application that can cause insurers to decline the application or charge excessive amounts.
Five issues could make a home insurance application ‘non-standard’?
Often consumers don’t know what makes a home and contents application ‘non-standard’ or whether an insurer may view their application in this way. So Ceta asked their underwriter to look at three fictional applications from film and TV characters and explain what would happen if they applied.
Applicant 1: Sonny Crockett, Miami Vice
An undercover cop who lives on a boat and is frequently away from home at night. Owns a pet alligator called Elvis.
Our expert says: His job isn’t an issue but if he’s away from home a lot and leaving it unattended that could mean a few more questions need to be asked about the type of security in place at the home. It is possible to find cover for boats that are homes, but it would depend on the type of boat. The pet, even an alligator, shouldn’t be an issue in him finding insurance but pet damage to the home will probably be excluded and there will be issues around liability cover for injury and death in the home caused by the pet.
Verdict: Insured
Applicant 2: Caractacus Potts, Chitty Chitty Bang Bang
An inventor who lives in a converted windmill with his two children and grandpa. Works with explosives and owns a flying car. Occasional trips abroad to Vulgaria.
Our expert says: Assuming the windmill is made of wood that would be something an insurer would want to know more about, especially if the applicant’s job puts it at risk of fire. Some insurers might exclude fire cover and the applicant might want to think about extra security and fire protection measures but we would definitely expect to find him cover from our panel.
Verdict: Insured
Applicant 3: Father Christmas
Lives and works in a building of unspecified materials in the North Pole. Extreme cold. Home is also an office with multiple occupants (elves, reindeer). Job involves flying and working within confined spaces (chimneys). Home is occupied most days of the year except Christmas eve. The applicant’s estimated date of birth of approximately 208 A.D. is unique.
Our expert says: The applicant works from home with more than 2-3 employees, which is a problem. As Santa has many helpers this would require a specialist policy. The home is occupied for the majority of the year, which is good. He lives in the cold which isn’t an issue and there doesn’t appear to be a big flood risk but we would need to know the materials the home is constructed from and, if it’s not robust, it may be declined or there will be a high excess on any claim. The applicant’s age is significant so if the property is equally as old that could affect the insurer’s view.
Verdict: Unlike the previous two fictional applicants, it’s worth sceptics noting that a miraculous 1994 court ruling from 34th street determined that the applicant is a real person. This is the most challenging application and could be declined by most insurers but, as it’s Father Christmas, anything is possible!
James O’Hara, Commercial Director at Ceta Insurance, said: For consumers, it’s worth bearing in mind that different insurers approach risk in different ways. So it’s always worth speaking to a broker, especially if you think your property may be complex to insurer or if there’s a chance of the insurer charging you extra or even declining an application for perceived risk.
Speak to your mortgage broker or to a specialist about searching the whole of the market. A better price may be available and even the most complex cases should be insurable.