In this article you will learn about home insurance, how it works, what are the main type of cover and how we can help you to get one.
Two main types of home insurance
Buildings and contents insurance are the two primary types of home insurance. You can buy any of those, or two at the same time (it is called combined cover).
The buildings insurance covers the cost of repairing structural damage to the building (roof, walls, ceilings, floors, windows, sometimes fitted kitchens, bathrooms). Types of damage that are included in typical buildings cover are flooding, storms, fires, and explosions, vandalism, fallen trees, lampposts as well as subsidence. If any of those happen and the property is damaged, the insurance policy covers the cost of rebuilding the property to its previous state.
Because it is fairly difficult to estimate the cost of rebuilding the house, its market value can be an indication that can help to determine the figure. Some insurers also offer buildings covers up to a certain amount, for instance up to £500,000 or up to one million that is also helpful.
The content insurance covers the cost of replacing furniture, clothes, carpets and curtains, jewellery, electronics equipment (TV, computers, tablets, phones), banknotes, coins and other personal possessions in case of damage or theft. This refers to damage in the event of fire or water damage, for example. Mechanical and accidental damage to objects is not usually covered by the standard insurance policy, but it is possible to cover them by buying an additional option called the accidental damage cover.
Again, it is fairly tricky to estimate the value of all contents and possessions in a house when buying a policy, but it is vital that you don’t undervalue your belongings. Please make sure that you’re fully protected if you ever need to file a claim.
In both types of home insurance, there is a so-called excess. It is the amount you pay toward a claim before your insurance company contributes. Some companies introduced two types of excess: compulsory excess arbitrary set by the insurer and voluntary excess that is chosen by a customer. It is also important to take this into account when buying a policy.
How much does home cover cost?
The cost of home insurance depends on quite a few factors like:
- the location of the property
- the number of people living in the house
- the cost of rebuilding
- the value of the contents
- the type of cover
- the excess amount
- security features
- previous claims
Home insurance can also come with additional options like accidental cover and other extras that can add to the price.
Do I need a home insurance?
Buildings and contents insurance are not required by law. However, owning both will ensure that your property and valuables are protected in the event of an unexpected event.
If you own your house and have a mortgage, your lender may require you to get buildings insurance for the duration of your loan. This insurance can be purchased from any company, not just your mortgage lender.
It’s possible that you’ll require both buildings and contents coverage. In a nutshell, these are the essentials.
If you own your house, you may wish to get separate buildings and contents insurance or combine coverage. You own both assets therefore it makes sense to protect them.
Buildings insurance is often the responsibility of your landlord if you are a tenant renting a property. To safeguard your personal things, you may wish to get contents insurance.
Where I can buy home insurance?
There are many options and places available to buy home insurance from, but we believe that you will benefit from our friendly, professional advice. Please contact us today, and we will help you to choose an appropriate cover and protect your home and all your possessions at a reasonable price.