Neighbors hike up home insurance costs

As the famous TV theme tune states, ‘everybody needs good neighbors’. However, some neighbors do not prove to be good friends as their DIY disasters hike up our own home insurance premiums. Research from Halifax home insurance shows that Britons undertaking DIY or home renovations projects caused £173 million worth of damage to their neighbors’ properties last year. In fact, nearly 600,000 Brits have their properties damaged by neighbors each year with the average cost of the damage hitting £291.

Why neighborly errors hit home insurance premiums

The damages caused to properties ranged from demolished walls and broken ornaments to water sent cascading into properties due to burst pipes. Worryingly however, it was the victims themselves who had to pay out in many cases – with one in three footing the bill for repairs on their own home insurance policies with a further 27 per cent of incidents seeing the costs shared. In Scotland the damages proved particularly expensive with the average cost of repair at a whopping £817. Fortunately for homeowners north of the border however, the region only accounts for 11 per cent of the total number of incidents. Wales and the South West were the next most expensive areas although they were some way behind with average costs at £359. By contrast, those in the South East of England may find their relations with neighbors particularly strained this region claiming 29 per cent of the total number of incidents, with the North of England not far behind with 27 per cent. The North however did have the consolation of boasting Britain’s cheapest repair bills at an average of £320.

What to do if a home insurance claim is necessary

It seems many of us adopt the typical British aplomb to our neighbors’ errors, with more than two thirds of us paying towards the costs ourselves. All of this could be avoided however, by making a claim on a neighbor's home insurance policy. Most home insurance policies now include elements of accidental damage and personal liability. This means that if you perform a DIY disaster that affects someone else’s property you could be able to cover the cost of repairs without paying out. If you are the victim you will probably prefer to avoid making an insurance claim on your own policy as this could potentially wipe out a no-claims discount. However, approach your neighbor about their home insurance cover and if necessary contact your own provider to see if it can resolve the issue without any charge for you. Homeowners should also bear in mind the Party Wall Act. Under its conditions, homeowners must inform and agree with their neighbor regarding any significant work to a party wall before it is undertaken. Failure to do this would almost certainly lead to the rejection of claims.

Check your own home insurance policy

Though it would be frustrating to discover that your neighbor does not have home insurance in place, it is not a legal necessity and so you could find it easier to make a claim on your own policy rather than drag your neighbor through the courts to determine their legal responsibility. Consequently you should check the level of accidental damage you have in place. Many home insurance policies will only include cover for accidental damage to pipes, cables and drains for which you as the homeowner are legally responsible. Other common exclusions on accidental damage policies include damage that occurs while the home is unoccupied, water entering your home other than by storm or flood and the cost of alternative accommodation for anyone not listed on your home insurance policy.

Checking the level of cover you have in place is crucial, just in case the worst happens. If you’re unsure about any aspects of your cover contact your home insurer directly for clarification and if necessary shop around with a comparison website to find the level of home insurance cover you need. Should a dispute with a neighbor escalate and legal action be required, many home insurance policies now offer legal protection up to around £50,000. This cover is usually an add-on to a policy and so will cost extra, but can provide crucial peace of mind. Claims must usually be reported within 180 days and a claim must be accepted before costs and expenses are incurred.

If you’re worried about losing your no-claims discount see if your < href="http://www.gocompare.com/home-insurance/">home insurance provider is willing to offer no-claims protection to save you cash in the event of a claim.