ET: Extra Terms on Your Home Policy

Little green men have been blamed for the destruction of a wind turbine in Lincolnshire last week, but what would happen if a UFO had crashed into some ones home instead? This question was raised to see if a home insurance policy would cover such an event.

An insurance broker Julie Carter said that many insurance companies would be wary of meeting bizarre claims and ‘Act of Alien’ would be classed alongside ‘Act of God.’

“Claims for freak household disasters are nothing new. But if something like this happens to a householder, too often they fear the response from an insurer. They worry that it will be up to the policyholder to prove that a little green man was responsible.” Carter stated.

Some insurers said that a home insurance policy would cover a range of weird issues such as a meteorite striking a house, an ex-husband bulldozing a home to the ground and even if a shark feel through a roof, with the exception that if the shark was a work of art there would be excess with conditions attached.

Strangely enough, the latter scenario is almost real. The famous rooftop Headington Shark in Oxford recently celebrated its 22nd birthday, and the building was surrounded by scaffolding for several months while the shark and roof were patched up to ensure it would last a few more years.

Carter said: “If you are going to modify your house, you need to tell your insurer what you've done. And if that includes putting a flying saucer landing pad on the roof, you need to be sure it can bear the weight. So fears about household insurance not covering the improbable are now misplaced.”

Home insurance claims good value for money
Not only does home insurance cover the unexpected, a survey has shown that a home policy is still exceptional value for money, with many good deals still available.

Findings from the AA’s British Insurance Premium Index revealed that while the average quoted premium for a yearly buildings insurance policy increased by 5.3% to £218.04 with some insurers sharply rising premiums, the study found a drop of under 0.7% to £122.77.

The average premium quoted for contents insurance fell by 1.6% to £122.98, whereas the shop around method dropped by nearly 3.9%.

Premiums for combined buildings and contents policies reflect these movements with a 1.5% rise in the average quoted premium to £290.62 and a fall of 1.1% in the shop around rate.

Simon Douglas, an insurance expert said: “These figures underline the fiercely competitive nature of the home insurance market. We're continuing to see offers aimed at attracting new customers which has contributed to falling premiums but people should still shop around as these don't always represent the best deal.”