Most people only think about insurance when something goes wrong. A flood, fire, accident, or theft is stressful enough on its own, and in those moments it’s natural to want quick reassurance and fast action. As the old saying goes, “A stitch in time saves nine,” and nowhere is this truer than in insurance.

Yet this is precisely when a lack of basic insurance understanding can have serious financial consequences. Unfortunately, this is also when a lack of basic insurance knowledge can lead to costly mistakes.

Insurance is a contract, and every claim is governed by its terms. Decisions made early in the process — sometimes during the very first call to your insurer — can shape the final outcome. Factors such as underinsurance, policy excesses, average clauses, and whether you accept a cash settlement or insurer‑managed repairs can all affect how much you ultimately receive, even when the claim itself is valid.

Many people assume that “new for old” cover guarantees a full replacement. In reality, if your sums insured are too low, the insurer may apply an average reduction, meaning only a proportion of the loss is paid. Early cash settlements can also seem appealing but may exclude VAT, shift responsibility for repairs onto you, and prevent you from claiming later for hidden or emerging damage.

Understanding the basics before you engage with your insurer helps you ask the right questions, spot risks, and avoid being rushed into decisions that may not be in your best interests. It also clarifies who works for whom — for example, a loss adjuster is appointed by the insurer, not the policyholder.

Even with preparation, claims can still be complex and emotionally draining. That’s where EtP can help. Members have access to experienced advocates who can support you before you make a claim, guide you through the process, or step in when things have already gone wrong.

You don’t have to navigate insurance disputes alone — so why not join today?