Are you really covering your clients' home insurance needs?

I believe home insurance is a key part of any mortgage conversation. After all, you’re helping your clients secure their home - probably the biggest purchase they’ll make - why wouldn’t you help them protect it? 

But how far does that home insurance conversation really go? The focus often naturally falls on the headline risks like fire, flood and subsidence, covered by a standard buildings or contents policy. Yet for many clients, the real gaps in their protection lie elsewhere entirely.

The risks we don't always think about 

A home insurance policy is designed to offer some peace of mind. But the risks that may catch people out aren't usually the major ones; they're often the everyday moments that nobody plans for.

Think about a client who wears their wedding ring on honeymoon and loses it on the beach. Or the weekend DIY enthusiast who puts a nail through a pipe and floods the bathroom. These are the situations that happen to real people, week in, week out and they're often the ones that fall outside the scope of a standard home insurance policy.

Unfortunately, clients may not think about these scenarios until they're in the middle of one. The everyday risks such as a lost handbag, or accidental damage, often require additional cover that many clients won't be aware of.

And when these moments do arrive, the financial impact can be significant. For example, replacing a precious ring could be very costly and particularly at the moment, when household budgets are already stretched from the current cost of living.

Encouraging clients to consider their needs

I want to be clear: this isn't about pressuring clients into buying cover that they don’t need. It’s about helping clients arrive at their own understanding of what they need, by exploring their lifestyle and considering their family circumstances. 

I’d encourage clients to really look around them. Ask them to think about the sofa they're sitting on, the phone in their pocket, the watch on their wrist, the bikes in the garage, the toys scattered across the living room floor. These are the things they interact with every single day, and yet they rarely consider what it would cost to replace them.

Once a client starts mentally walking through their home room by room, the conversation can naturally shift. They can begin to recognise not just the financial value of what they own, but also where their current policy might fall short. And that's when the discussion about whether their cover truly matches their lifestyle becomes genuinely meaningful.

Where standard cover ends

Of course, standard home insurance policies do an excellent job of protecting against major perils. But when everyday life throws up risks that often fall outside that standard cover, these are the moments where optional extra covers usually come in and can provide greater peace of mind.

There are typically five key areas where clients may benefit from additional cover:

• Enhanced accidental damage will often cover those everyday accidents in the home, from spilled wine on a carpet to putting a foot through the loft floor or a nail through a pipe. 
• Personal belongings away from home can protect items that leave the house, such as jewellery, handbags, and mobile phones, against loss, theft, or damage wherever clients go.
• Bicycle cover - with cycling more popular than ever, this usually covers theft, damage, or loss of bikes worldwide.
• Legal expenses usually provides cover for legal fees for boundary disputes, personal injury claims, unfair dismissal, workplace discrimination, and disputes over goods and services.
• Home emergency cover usually provides cover for emergency assistance and repairs.

Real claims, real impact

Here are some real-life examples that highlight why these conversations matter:

1. A boundary dispute that escalated quickly: One couple entered a dispute with new neighbours over a boundary line that affected their ability to park on their own driveway. The neighbours issued proceedings and included allegations of property damage worth tens of thousands of pounds. Thanks to their legal expenses cover, the defence was fully funded, and with specialist legal assistance, a comprehensive settlement was reached, securing their parking rights and establishing a favourable boundary. Without that cover, they would have faced crippling legal costs to defend themselves.

2. A hearing aid lost on holiday: A client reported losing their right hearing aid while on holiday in Spain. Because they had personal belongings cover, the claim was verified and paid, £1,425, minus the excess, on the very same day it was reported. Without that cover, they'd have faced the full cost themselves at a time when they were away from home.

3. A brand-new sofa ruined by accident: A client had a new sofa delivered and applied cat protection tape to it. Unfortunately, the tape was applied incorrectly, and when peeled off, the pattern from the sofa transferred onto the tape, ruining the upholstery. Their enhanced accidental damage cover meant the claim was reviewed and settled within weeks. Without it, they'd have been left with a damaged sofa and no recourse.

Help fulfil your Consumer Duty 

With advisers expected to demonstrate they have properly understood their client's needs as part of their Consumer Duty obligation, having a detailed conversation around your clients’ home insurance needs can form part of delivering good outcomes.

The good news is that these conversations don't need to take long. A few well-placed questions about how clients live whether they cycle, carry valuables, or have young children can quickly identify where gaps might exist.

Make it part of every review

For me, home insurance shouldn't be a 'set and forget' product. Clients' lives change. Each of these life changes can create a gap between what their policy covers and what they actually need.

I believe we have both the opportunity and the responsibility to ensure clients are properly protected. It doesn't require a hard sell, just a genuine conversation about how they live and what matters most to them. A little extra cover can go a long way.