Home insurance is usually a combination of buildings insurance and contents insurance. You can take these policies out separately, but it’s often easier to just take out a home insurance policy which includes both. There are lots of other optional extras you can take out on top of these two, depending on the type of property and its contents.
The idea behind home insurance is to protect your property and your assets from any freak incidents or unlucky events. If you choose not to insure your home and its contents, you are arguable doing it at your own risk. The majority of people’s homes contain their entire life, and although some things are irreplaceable, having insurance to protect expensive items and any damages, may help you sleep easier. Whilst home insurance can’t prevent unfortunate incidents, it can enable you to repair the damage done by such events.
Typically, home insurance will be a combination of buildings insurance and contents insurance. The way in which each are determined can vary. Building insurance should cover the cost of your home to be re-built from the ground up (not the the sale or market value). It’s recommended to review the rebuild cost every so often, to make sure the figures are up to date. This is important so that your payout reflects the cost of an entire rebuild. With regards to your contents, the best way to determine a value of your assets is to root through each and every room and make an inventory of your possessions and their costs, including furnishings such as carpets etc. This inventory should also include any other buildings such as outhouses, sheds or garages. This way you will have documented everything you need to, should you come to lose it all.
Whether your home is a one bedroomed flat or a ten bedroomed mansion, your home is your castle. That’s why it’s important to get the right cover in place should something go wrong. Your home will no doubt contain some of your most prized and valuable possessions. Therefore, you’ll want to protect those too. So, we’d suggest home insurance which covers both building and contents.
Buildings insurance covers the the structure of your home (roofs, walls, windows etc.). It also includes fixtures such as kitchen and bathroom suites. Policies do vary, however, most do include protection against natural disasters such as earthquakes and floods, as well as incidents such as burst pipes or fires which have spread. Some policies may require additional premiums to protect against accidental damages.
Contents insurance covers your possessions and is usually arranged on a new for old basis. By this, your insurance provider will agree to replace an item as a like for like version, even if it’s 10 years old. However, some policies will assess the condition of the contents before laying out for new items. This is known as an indemnity policy and are usually cheaper. Again, you can add on extra policies to cover the likes of accidental damage and personal possessions which are often out of the home such as mobile phones and laptops that may not be on an initial inventory.
Whenever you purchase a property, most mortgage providers will require you to have an adequate form of buildings insurance. It’s worth checking such policies to check if it has the type of cover you require. However, you may not require contents insurance right away, so you don’t have to have it. Although there are policies out there for insuring empty homes to protect against vandalism. It’s more likely that the more possessions you acquire, the more likely you will want to have them insured. It’s recommended that the sooner the better with any home insurance policy, so that you’re covered just in-case anything does happen.
On the buildings insurance side of things, it’s not often that insurers will pay out for general wear and tear. Nor will they recognise acts of terrorism. If your home is at risk of flooding, you mind find it difficult to secure home insurance without paying a premium for flood insurance on top. Without such premiums, don’t expect the average home insurance policy to have you covered. You could take matters into your own hands and take defensive measures against floods to help. Installing flood boards or moving your boiler and other electrical points well above flood likely water levels, for example, may work in your favour. Large cracks in your walls may be a subsidence issue. This mainly affects homes built on clay or soil because in dry spells the soil shrinks and the property sinks. If you think your property is vulnerable to subsidence, take out a subsidence insurance policy to guarantee cover. If you deem your home to be unusual and not a standard bricks and mortar build, you should look to a specialist home insurance, rather than relying on a generic buildings insurance policy. The same applies for listed buildings with listed building insurance.