Whilst she was on holiday with her husband, Samantha’s older teenage daughter held a party. A drunken friend of her daughters thought the patio doors were open, and walked straight into them, cracking the glass, and giving himself a nosebleed.

When Samantha returned home, after her daughter had apologised, she called her insurance company and informed them “My teenage daughter had a party…”. Not only did they accept the claim, but as the old french windows were single glazed, and new legislation had been enacted on doors that size, the insurance company replaced them with brand new double glazed ones!

Whilst this was a great win for Samantha, not all stories like this turn out as well, even with insurance – how so?


Cost is a big consideration for people when choosing an insurance policy. As we rarely (hopefully!) ever have to claim on them, it can seem like a waste to pay more, especially when prices can vary so much. But in opting for a cheaper policy, the coverage it provides can be less. What can we do to balance cost with coverage? Here are some options.


One of the ways you could potentially lower the cost of the insurance is to opt for a higher excess. An excess in insurance terms is the first part of the claim, that is not covered. So for example if you have £500 television stolen, and your excess is £50, the insurance company would only pay out £450. By going for a higher excess, such as £100, meaning the insurance company would only have to pay out £400, the policy can be made cheaper. This means some of the cost (that £100 excess) is only incurred if the worst does happen. If it doesn’t, you’ve saved money.

Indemnity cover or new for old cover

Another factor to consider is indemnity cover versus new for old cover. Let’s say you bought that television two years ago, with new for old cover, you will be paid the amount it takes to replace it with a brand new television at today’s prices. This is great coverage, but it can raise the insurance premium. A cheaper form of coverage is indemnity cover. This pays you the amount that your item was worth today if you were to sell it on the open market. So that television you bought for £500 two years ago, might only be worth £200 today, and that is the value that indemnity insurance would reimburse you for.

Accidental damage cover

Finally, returning to Samantha’s story, whilst home insurance policies will typically provide coverage for things like crime or fire, getting accidental damage coverage is another added extra. Whilst that can cost more, in Samantha’s case, she certainly found it worth it.

So what policy should you go for? It depends on your circumstances. If you want to pay as little money as possible, then a lower coverage insurance will probably work best for you. If you want everything taken care of if the worst happens, then a higher coverage policy is for you. Whichever way you go, the best all round value offers the best coverage for the lowest price.

At Covvered we can help you get the right policy for your needs. Tap the link in the app to get the best value quote in the whole of the market.