Home Insurance
Home insurance basically consists of two elements: Buildings insurance and Contents insurance.
Most insurers can provide both contents and buildings insurance in one insurance policy although they are available separately.
You can compare home insurance offered by numerous insurers using a comparison website such as Confused.com, Gocompare.com or Comparethemarket.com.
Finding the right policy for your need is crucial.
Many people might consider buildings insurance to be compulsory and contents insurance to be optional. This is probably a flawed view. Certainly if you have a mortgage on your home then most likely you will be required to at least have building insurance cover but to protect yourself it is prudent to take out contents insurance as well.
Buildings insurance is an insurance policy that covers the actual structure of your home against damage. If your house is damaged accidentally or maliciously, destroyed or rendered uninhabitable you will be eligible to make an insurance claim. The payout is to cover the cost of repairing or rebuilding the property, it should also cover the cost of any alternative accommodation whilst works are being carried out if it is required.
Whilst there will be variation across the policies offered by differing insurers, buildings insurance is likely to cover:
- Floods
- Fire or Smoke Damage
- Weather or Wind Damage
- Vandalism or damage caused during a civil riot
- Damage from falling objects (e.g. Trees, Power-cables, Telegraph poles, Aircraft etc)
- Leaking pipes, Boilers, Sewerage
- Subsidence
You need to consider your personal requirements and then always read any prospective policies in full to check all the inclusions/exclusions. For example, if you live in a high risk flood area then make sure that the insurance on offer includes flood cover for your post code.
Common exclusions from a building insurance policy are:
- Damage to Fences, Gates, Walls, or Hedging
- Damage by malicious acts if your home has been left empty for a certain period*
- Water or Oil leakage if your home has been left empty for a set period* (*normally 30 - 40 days)
- Claims involving divorce
- Cover for outhouses, garages, sheds or other external structures.
Contents insurance is essentially the cover of the possessions in your home. You can get cover for your belongings whilst they are not at home but this will vary depending on the insurance policy.
Contents Insurance is usually based on a total estimate of the value of your possessions.
All your possessions are usually covered though high value items such as jewellery, antiques, works of art or unusual items may have to be covered separately. These will probably need to be listed with individual values applied. You may also need to provide evidence of the valuation before the insurance company will cover them.
If you have a large number of high value items or indeed your overall property value is high you may be best placed to consider a high value home insurance policy, rather than standard house insurance
Contents insurance policies can vary dramatically in their extent of cover. Things to look for in your policy:
- Are you covered for accidental loss?
- Are your possessions covered if they are stored in the car, garage or external buildings such as conservatories, sheds or outhouses?
- How much excess are you liable to pay?
- Are your boats, bicycles or caravans covered?
- Does your policy provide replacement locks, windows or doors in the event of a break in?
- The extent of cover for accidental damage.
Home insurance can be a valuable asset to have and can provide reimbursement or replacement of your possessions in many different circumstances. It is crucial though that you find a policy that is suited to you and your life style, providing you with the home insurance cover that you need. Ultimately you want to make sure that if you do have to make an insurance claim then you are covered.
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