"Through direct interaction, advisers are able to understand their customers’ circumstances in order to make sure the home insurance options suit their needs, playing a crucial role in closing the gap between expectation and reality."
- Nasar Hussain - Paymentshield
There is sometimes a mismatch between what customers expect to be covered in their home insurance and what policies actually include.
For some homeowners, knowing they have cover for unexpected damage caused by everyday activities, such as DIY projects, crafts with children, or accidental red wine spills on the carpet, gives them much-needed peace of mind. So, for advisers, offering a general insurance (GI) conversation to uncover any expectations and ensure that the insurance they’re buying actually matches the client’s needs presents a great opportunity for both parties.
In a recent survey of 1,006 consumers, designed to gain a better understanding of their behaviours and expectations when choosing a home insurance policy, Paymentshield noted that nearly 40% of respondents would expect accidental damage to be covered as standard. However, a report from Which? revealed that only 28% of buildings insurance plans and 27% of contents policies include accidental damage cover as standard, highlighting a gap in consumer awareness which may lead to underinsurance.
However, the picture becomes even more complex when considering that not all accidental damage cover offers the same level of protection. Some insurers provide a limited level of accidental damage cover as standard, covering specific items such as technology, entertainment equipment or glass breakage, while broader “full” accidental damage cover is offered as an optional extra.
When looking at other expectations around standard coverage, 60% of respondents believe that both loss of keys and contents stored in outbuildings, such as detached garages or greenhouses, are automatically included. Furthermore, 24% assume that business equipment is covered as standard, a significant figure given that 28% of the UK workforce has operated under hybrid models in 2025, according to the Office for National Statistics.
When researching home insurance on price comparison websites, cover and price remain the primary deciding factors for clients, with research revealing that 16% of respondents ranked the "what’s included" summary as the single most influential factor. This was followed very closely by the “lowest price” variable at 16%.
However, where shown on comparison sites, the "what’s included" summary typically only highlights the key policy inclusions, not what is excluded. It is designed to be a summary of cover but means customers may not be clear about what is specifically excluded.
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Furthermore, the same research shows that around one in three (32%) sort their price comparison website results by lowest price, while just one in six buyers (17%) are more inclined to choose the “most features included” option. There’s a risk that those who choose to sort by lowest price first will be served lower-coverage policies initially and may need to scroll through different results before they’re able to find a policy that meets their cover needs and expectations.
Through direct interaction, advisers are able to understand their customers’ circumstances in order to make sure the home insurance options suit their needs, playing a crucial role in closing the gap between expectation and reality.
Introducing GI conversations is key to removing any client confusion during processes such as the mortgage journey. By highlighting standard coverage for unforeseen and sudden events, as well as explaining optional extras, advisers can provide customers with a better understanding of their insurance options according to their specific circumstances.
