Eating and drinking at the wheel doubles crash risk

Homes and business across Kent were damaged by the recent earthquake that measured 4.3 on the Richter scale. If the same thing happened in your area, or you were hit by another freak 'act of god', would you be covered by your insurance?

The tremor in the Folkestone shook hundreds of homes area and caused chimneys and masonry to fall, as well as cracks to appear in properties.

The Association of British Insurers (ABI) has estimated that the damage bill will run in to single figure millions, possibly low tens of millions.

Most home insurance policies will not only cover the structural damage to these properties but also the cost of alternative accommodation (up to policy limit) if you need to move out of your house while it is repaired. Anyone who had been affected by the recent earthquake should contact their insurer immediately for advice.

What to do

Always keep a record of damage that has been caused and keep a copy of all correspondence with your insurer. Photographs are a good way to show insurers the damage that has been caused.

If you have to make any temporary repairs keep all your receipts as these will form part of you claim.

Damage to cars and other vehicles should be covered by comprehensive motor insurance policies. Those who only have third party car insurance are unlikely to receive compensation.

Are you insured?

The recent tremor should start alarm bells ringing to ensure that you have adequate home insurance in place. It is unlikely that homeowners would have enough money readily available to pay for the repairs to their home out of their own pockets. This is why home insurance is so important.

Home insurance is designed to provide a financial safeguard should your valuable assets be struck by disaster or if your possessions are damaged or stolen.

It is impossible to prevent forces such as an earthquake from striking your home, but you can make sure that you have adequate levels of cover. The following points should ensure you're fully covered if a disaster of any nature should strike.

• Keep your sum insured up to date: This is the maximum the insurer will pay out in the event of a claim. The correct level of buildings cover should cover the full rebuild cost of the property and not the market value. Contents insurance should include all the possession inside your home. Remember to update your policy with any new purchases or home improvements.

• 'New for Old' cover: This is also known as 'replacement as new' cover. This means the insurer will pay out for the price it would cost to buy the items new. Most insurers will not provide 'new for old' cover on clothing, household linen, bicycles and audio/visual and computer equipment over five years old that has been damaged accidentally.

For these items, a deduction is made for wear, tear and depreciation.

In addition, deductions are made if items are not replaced or the sum insured does not represent the full cost of replacing the property insured.

• Check the single item limit: Most insurers will pay up to a maximum of ¯¿½1,500 but this limit does vary dependent on the insurer.

Always inform your insurance company of any expensive individual items you wish to include on your policy. It may be necessary to pay a higher premium or take out a separate policy. These options are often worth it to protect your valuable possessions.

• Make your property secure: Insurers tend to favour mortice deadlocks and rimlocks that conform to British Standard 3621 and a NACOSS approved alarms. Make sure that you always lock doors and windows and set the alarm if you are leaving your property for any period of time.

• Flooding and Subsistence: If you live in an area prone to flooding and do not have house insurance it is very important to inform your insurer. When you take out a policy, failure to tell the insurer the truth about your property and the area may result in the claim being rejected.

• Be aware of the policy exclusions: Remember that the cheapest quote does not always offer the most comprehensive insurance.

Always make sure you have checked the policy terms and conditions and exclusion to make sure that you are happy with the level of cover provided. Failure to have the correct level of cover could result in the insurer refusing to pay out in the event of a claim.

• Shop around: It pays to shop around when looking for home insurance as different insurers specialise in different risks. One insurer will often offer a more suitable product at a more competitive price.

Make sure you always compare policies on a like for like basis. A policy may be cheaper but it may have less cover. Don't be caught out.

Also: Get a home insurance quote