When looking for home insurance you may well be offered alternative quotations based on either a sum insured basis or on a bedroom rated basis but what is the difference between a bedroom rated and a sum insured rated home insurance policy?
The first point of difference to note between the two types of policy is that it is not just the “rating” of the policy, i.e. the method of calculating the premium that is different. The sums insured under both policies are determined by a different method and the difference created by this can be extremely important in the selection of which policy is best for you.
What are the advantages of a bedroom rated home insurance policy?
For most policyholders the clear advantage between a bedroom rated policy and a traditional sum insured based policy is in the fact that there will not be, for most policyholders, any concern as to making sure that the sums insured is correctly assessed under the bedroom rated policy.
Most bedroom rated policies whether they are issued for buildings or contents or a combination of both usually include a sum insured in respect of buildings and contents that are more than adequate for most homes of a “standard”type.
Consequently if the sums insured are more than sufficient to meet your needs then this reduces the possibility of any under-insurance and any consequent reduction in your claims settlement in the event of a claim.
It is important to note that is still the responsibility of the policyholder to ensure that the sums insured under the policy are correct and you should confirm this against the sums insured under any quotation or policy you are provided with on a bedroom rated basis.
You will need to ensure that any additional cover that you require under the policy for instance expensive jewellery, pedal cycles is adequately catered for under your policy, but this applies to both types of policy.
How to compare bedroom rated and sums insured based home insurance policies?
In most cases the biggest difference between the two types of policies is in the sums insured for buildings and contents. The actual basis of the cover is broadly the same under the two policies and if you correctly assess the sums insured under your sum insured basis policy then you should not have any concerns about making a comparison based upon the price of the contracts. The additional benefits of cover from one policy to another will be more about the standard features of each insurance company’s individual product rather than a difference between a bedroom rated and non-bedroom rated policy.
How can I tell whether a policy is bedroom rated or not?
This information should be clear to you in any quotation your receive and in any renewal documents you receive from your insurance broker or company. If you are in any doubt as to the basis of your policy or the adequacy of your sums insured you should contact your insurance broker directly.