Advice is more important than ever, particularly in light of the FCA’s report on pricing in the general insurance market, which has shone a spotlight on premiums and value for money.

The disruption of Covid-19 has forced many people to reassess their budgets, including their insurance premiums, so advisers must ensure they support customers by considering all their renewal options based not only on the client’s needs but on cost as well.

This is also imperative for clients who may have formed bubbles during lockdown, or for those who have used the time to make home improvements, as they may not realise this could affect any claims made on their home insurance later.

Working from home

Changes brought about by the pandemic mean brokers must offer support to all clients whose needs may have changed. For example, if your client is an office-based worker and is working from home, it is likely their home insurance will not be affected as insurers waived the need to be informed about this at the start of the pandemic. However, for anything other than office-based work, it is wise to check more specific insurance needs with their insurer.

If the client’s situation has changed and they are able to work but have chosen not to — or are now working from home on a regular basis — they may have to inform their insurer that their working pattern has changed. This is particularly true for anyone receiving visitors to their home for business reasons, as there may be restrictions to cover for theft or loss of money.

Although insuring office equipment such as laptops and keyboards outside the office is typically the responsibility of the employer, if the client has chosen to work from home more frequently, it is also worth notifying the insurer about the change in circumstances.

Living arrangements

For people who have formed bubbles during the lockdown periods, insurers have adopted a pragmatic approach to additional guests in the home. However, this is subject to change depending on the length of time that social distancing measures remain.

It is important that guests are trustworthy and know how to secure the home because claims for theft will be accepted only with proof of forced entry. In the event that a change in living arrangements becomes permanent, it is vital to inform insurers of this change of circumstances, a matter that may be overlooked or forgotten by many policyholders.

If your client’s guest has their own home insurance policy, their possessions may be covered while they are away from home temporarily. There may, however, be a limit to the level and length of time the cover is available, so it is worth getting some clarity from the insurance provider.

Home improvements

For clients who have used lockdown to make alterations to their property, it is essential that brokers identify the work undertaken and inform the insurer.

Changes such as converting a garage into an office could count as an extra room and non-disclosure could result in an insurance policy becoming invalid and a future claim not being paid out.

Similarly, expensive outdoor equipment such as newly purchased garden furniture and sheds should also be disclosed because there is often a maximum claim limit on items insured outside the house. This is particularly pertinent given the fact that there has been an increase in the theft of these items throughout the pandemic.

Role of the broker

After almost a year of staying at home, many people may not realise that upgrading their property and purchasing expensive items may mean their contents insurance no longer adequately covers them. By failing to disclose changes or to revalue their personal possessions, clients could see a genuine claim discounted due to non-disclosure.

Similarly, those financially affected by the pandemic may resort to exec-only solutions in favour of cost, while others may consider cancelling their insurance altogether.

Brokers should continue to actively advise their clients on their home insurance policies to ensure they shop around to find cover that meets their needs at a price they can afford.

Lisa Martin is development director at TMA