| There are two types of home insurance: buildings cover (a condition of a loan being granted by a mortgage lender) and contents cover, which is optional. They can be bought separately, but it is often more convenient and cost-effective to take them under one policy.
Shopping around for the most appropriate policy can save you hundreds of pounds a year! There are countless companies on the high street and the internet, offering cover at competitive rates. Compare quotes from over 60 insureres HERE and make sure you get the best deal!
Buildings Insurance
This type of insurance cover typically protects the structure of your home from:
• Severe Weather - Storms, Lightening, Floods.
• Theft and Vandalism.
• Fire, Smoke, Explosions.
• Subsidence.
• Burst Pipes.
• Civil Commotion.
• Water or Oil Leakage.
• Impact from Vehicles, Falling Trees, Aircraft, Masts, Aerials.
Your mortgage lender will insist you take out this form of cover and might try to sell you a policy, although you’re not obliged to buy from them they may have a special deal available. If you own a flat, your freeholder will usually arrange the buildings insurance, and if you are a tenant the owner of the property will provide the buildings cover.
Typical Cover
Most cover includes loss or damage to permanent fixtures such fitted bathrooms and kitchens, garden sheds, greenhouses and garages, driveways, boundary walls and fences. You have the choice of adding accidental damage cover to your policy, this may cover pipes and cables, glass in doors, windows and bathroom furniture are usually covered. DIY mishaps may or may not be covered. Check your policy before embarking on any handy work, even if you do consider yourself to be skilled!
It is very important that you are fully aware of the extent of cover before you take it up. There will be exclusions; typically these are storm damage to gates and fences, frost damage, and structural damage caused by aircraft’s sonic booms. Remember different insurers will make their own provisions with regard to what is covered and what is not.
Sum Insured
The amount of cover should be equivalent to the cost of rebuilding your home. This is called the ‘sum insured’. It is the most your insurer will pay out, even if your house is reduced to ashes, and it may be higher or lower than the property’s market value. It is possible to calculate your own sum insured, but it’s also very complicated. A chartered surveyor will be able to prepare a professional rebuilding cost assessment. Some insurers offer unlimited cover, while others offer premiums based on a simple assessment of where you live, the type, size and age of your property. Premiums will be higher if you live in an area prone to subsidence.
Excess
With most policies there will be an excess which you will have to meet on any claim. Most insurers will keep your policy up to date by index-linking your sum insured to take into account changes in rebuilding costs. Check that your provider does this - and inform your insurer if you improve your home, for example, by building an extension.
Top Tips
• Always check that the amount of your policy covers the value of the house. If you feel it is too little, raise you cover.
• Ensure your buildings cover commences on the date you purchase the property, not the day you move in.
• Check the "Excess" value (the minimum amount you have pay for any claim) and make sure it is to your satisfaction.
• Frequently review your policy and update it if necessary, on renewal always shop around!
• If you make any alterations, structural or otherwise, inform the insurance company as soon as possible.
• Read the small print.. Boring? Yes! But always read it because the important stuff is usually found in the small print!
Contents Insurance
This type of insurance typically covers the moveable possessions in your home from loss or damage as a result of:
• Severe Weather - Storms, Lightening, Floods.
• Theft and Vandalism.
• Fire, Smoke, Explosions.
• Subsidence.
• Burst Pipes.
• Civil Commotion.
• Earthquakes.
• Water or Oil Leakage.
• Impact from Vehicles or Falling Trees.
Some policies have special features. These can include built in Legal Expenses, cover for possessions in your vehicle, food spoilage in freezers, garage cover, outbuildings cover etc. If you want to keep your insurance premium to a minimum, ask the insurer about leaving off special features, or try raising the excess. The policy may ask you to submit a contents list, with individual items over a certain value specifically priced. This varies with different insurance companies. Accidental damage is usually an optional extra and you will have to pay an increased premium for this type of cover however this can be very useful, especially if you have young children!
Top Tips
• Work out how much your possessions are worth before shopping around for an appropriate policy, if you value the contents of your home room by room you may be surprised with how much they total to!
• If you are getting an Old-for-New policy, make sure to value your contents at their replacement value, not at their actual value.
• When moving house, check with the insurer to see if your contents are covered, and inform them of the exact date(s) that the move is taking place. Some insurers make provisions for goods in transit!
• Check whether office equipment, pedal cycles and special valuables have to be insured separately.
• Check whether you are covered for accidental damage.
• Don't give any false information when apply for insurance. This will make your policy invalid when trying to make a claim.
• If you have any goods such as jewellery or collectors items that are high in value you will need to report these to the insurer as you may be required to insure them separately.
• When getting quotes, state whether your house is alarmed, has lockable windows, double glazing or any other security features. You will usually be entitled to a discount in these circumstances.
• Read the small print.. Boring? Yes! But always read the small print because most of the important stuff can be found here!
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