19% of over 60s have lost an item or had it stolen or damaged at home but have not made a claim on their home insurance policy, missing out on £600 million, according to Age UK’s social enterprise arm, Age UK Enterprises.
For those who have not made a claim, 40% didn’t want a claim to increase their insurance premiums, while 39% thought the item was too low in value for the effort involved.
In addition, many later life consumers aren’t keeping their policy up to date putting them in danger of finding themselves underinsured should they need to make a claim. 67% of over 60s say that they only update their home insurance policy when they renew their cover while 91% of respondents admit to not updating their policy when they purchase a high value item.
While many admit to not claiming, 92% of those who have said they found the process easy or reasonable. Most claimants are confident in going it alone with 71% making a claim without any support from third parties. Of those who did seek advice the majority spoke to their insurer, as opposed to a friend or family member. Only 8% said that the process of making a claim was difficult.
Gordon Morris, managing director of Age UK Enterprises, said: “It is encouraging to see that many consumers find it relatively easy to make a home insurance claim. However, it is concerning that so many older consumers, often on a fixed income, are missing out on money they may be entitled to because they think that their claim might not be successful or that their premiums will increase.
“It’s vital that consumers keep track of their insurance policy, regularly update it following a new high value purchase and thoroughly read the terms and conditions so that it is right for their individual requirements. Shop around for the best deal and pay close attention to the terms and conditions, including policy information around premiums and excess.
“Age UK has long championed ‘savvy consumers’, encouraging older people to better manage their financial arrangements. While the research shows many over 60s who make a claim find it easy to do so, more still has to be done to support those encountering difficulties. Industry and providers should encourage people to review their policies on a regular basis and open clear lines of communication and support to ensure customers feel empowered to make a claim or act when necessary.”
