One day insurance - but with a catch

[merlin]

can you explain the "internal" part of the above please?

With a proper motor trade policy - cover is split into two parts.

Road Risks and Internal Risks.

So for a dealer with a showroom or forecourt or whatever - Road Risks covers the cars out on the road and internal risks is basically just a property policy covering the "stock" (cars/vans/bikes or whatever) whilst in showroom or on the forecourt.

Because internal risks policy is a property policy - it's subject to average (under-insurance) condition - so if your stock sum insured was £50,000 and a fire destroyed all of your stock - and it was actually worth £100,000, you only get £25k as you were 50% underinsured.

 

[merlin]

no but to be honest with you when i first took out a traders policy everyone i know with one told me to call them.
they were too expensive as it happens or i'd have signed on the line.
what's wrong with them?
bad rep in the industry?

Cowboys

 

[The_Dark_Side]

mine is just the vanilla "part-time trader without premises trading from home" policy.

Because internal risks policy is a property policy - it's subject to average (under-insurance) condition - so if your stock sum insured was £50,000 and a fire destroyed all of your stock - and it was actually worth £100,000, you only get £25k as you were 50% underinsured.

now that's just downright painful.

Cowboys

the advice i was given was ring everyone in the back of the autotrader.
Tradex were too pricey, although after reading your stuff i'm pretty glad about that.