Tesco makes home insurance cover promise

10th January, 2006

Tesco's home insurance customers will not have to worry about estimating their home's rebuild cost, following a promise to provide up to £350,000 of cover at no extra cost.

This assurance comes because recent consumer research found that over four out of five homeowners (81 per cent) do not know the rebuild value of their home and so they have to guess when filling in their application form.

The home insurance industry at the moment uses a rebuild value system from the Royal Institute of Chartered Surveyors (RICS) based on a house's post code. The system does not however account for structural and aesthetic improvements made by the owner.

Under the Tesco home promise customers will pay no more for the additional home insurance cover as their premium will continue to be calculated on the RICS system figures.

Allan Burns, head of insurance at Tesco, said: 'This is a very real customer offer created directly from feedback from homeowners.

'Tesco wants to make home insurance simpler and easier for customers. We also want them to feel safe in the knowledge that if the worst happens they don't have to worry about being adequately insured.'

 

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