Insurance Questions And Answers From Insurance By Steve

Insurance Questions And Answers

Gap Without Car Insurance

Q1. Does my no claims period expire if there is a gap in my car insurance? Two months ago my car broke down. There are 3 months to go on my insurance. If at the end of that 3 months I am still not driving and I do not renew my insurance, will I be penalized later on for having a gap between insurance policies?

A2. Yes though insurers will treat the period you were uninsured differently in their calculations. Some have limits to how many gap years they consider. It may be 2 or 3 years. Canceling an existing policy half way through it's term will also impact your future no claims period because insurers only take whole years into account. It might be a good idea to continue a very basic insurance policy with your old car if you still have it in your possession and do not use it. At least this will keep your no claims period going until you eventually replace the vehicle. Insurers require proof of your no claims bonus which can only be provided by the policy document issued by your previous insurer.

Is Boat Insured Abroad?

Q2. If a motor boat is taken to another country is the insurance on it still valid?

A2. It depends which country you take it to. Taking a UK registered boat over to another European Union country such as France and the policy will no doubt cover you. Take the same boat across the Atlantic to North America and it is very unlikely it will be covered unless you have specifically requested a global policy. What is also important is where the boat is based and under which country it is registered.

New Roof After Hurricaine

Q3. During the last hurricaine the roof on my Florida property was badly damaged. The tiles on one side of the roof were ripped off but the tiles on the other side were less damaged. Will my home insurance policy cover just the cost of repairing the lost tiles or will it pay for a band new roof?

A3. I believe it depends upon how your roof tiles are fitted. New regulations appear to ahve come enforce requiring roof tiles to be nailed to the roof beams. I would expect the assessor to allow for all of the roof tiles to be replaced according to new regulations. I know of someone who had a similar claim and they received twice as much from the insurance cover as it cost to have all of the roof tiles replaced.

Why The Delay?

Q4. My car was stolen and discovered half burnt out in a local wood. But it is taking ages to get a response and pay out from the insurance company. What the heck is going on?

A4. There is an ever increasing number of intentional arson cases by car owners who cannot afford to repair their vehicles and want to get as much insurance cash for it as they possibly can. In 2008, 130 people were arrested in New York for intentionally burning and abandoning their cars and then claiming for a full loss on their insurance claim. This is why it is important to have as much evidence on your side as you can possibly get. And the best evidence is a police report of your vehicle having been stolen and their assessment of who was responsbile for it beng found in a burnt out condition.