Building & Contents
Home Insurance
Home owners usually need two types of home insurance cover. Buildings insurance pays for damage to your property caused by, for example subsidence or fire. Contents insurance covers your household possessions.
Both these types of cover can be purchased seperatley, it could be more cost effective to buy under one policy.
Buildings insurance cover is of most importance, if your house burnt down would you have the money to cover this loss?
Mortgage providers insist that you have building insurance so that in the event of a disaster it can be repaired or rebuilt, as mortgage lenders will not want to be left without security for their loan.
A policy should cover funds to rebuild your home in the event of it being totally destroyed or damaged to the point that complete rebuilding is necessary. Some policies only cover market value, so be sure to check. The policy could also cover against damage caused by events beyond your control including:
• Flood damage and storm
• Burst pipes and other incidents of water leakage
• Smoke, fire and explosions
• Third party damage or vandalism
• Subsidence
This policy could also provide you with alternative accommodation if your home is uninhabitable. Do not simply opt for the cheapest building insurance quote available and think about your needs.
As well as the structure of the property, buildings insurance also covers permanent fixtures and fittings including fitted kitchens, baths, toilets, bedroom cupboards and interior decorations. The test is whether or not the fixture can be removed and taken to a new home, for example fitted cabinets. Policies will usually cover outbuildings such as garden sheds, garages and greenhouses, but might not cover fences, gates, paths, drives, boundry walls and swimming pools.
The level of cover required
A sum insured is the amount of money for which your home is covered and the most an insurer will pay even if your home is completely destroyed by fire. It is also the amount it would cost to rebuild your home even though this is not the same as the market value of your home.
Some insurance companies may offer unlimited cover. This means that you will not have to worry about how much cover you need.
Exclusions and excess
Certain losses are not covered by the policy and are only semi reimbursable. The policyholder must meet some of the cost of each claim, which is known as ‘the excess'. This results in keeping the policy premiums down and can deter trivial claims. Find out what these exclusions are before selecting your policy.
Subsidence
Any damage to your property due to subsidence is usually covered, even though there's often a larger excess (the first amount of any claim you have to meet) for this type of claim – normally £1,000 or more. However, buildings policies usually only cover subsidence damage to the house itself.
Contents Insurance
Contents insurance gives protection to anything that is not a fixed part of your home, for example your appliances, electronic goods, furniture and clothing. Most home contents insurance policies will even cover the contents of your fridge and freezer. Policies are advisable for homeowners and tenants while landlord contents insurance can be limited if the property is let unfurnished or part furnished.
The cheapest contents insurance available is indemnity insurance, which will replace, for example, a five-year-old carpet with one of the same age. A more expensive option is the ‘new for old’ policy that replaces the old carpet with a brand new one.
Your home contents insurance could also include cover for some items you take away from the home such as bicycles or prams and even the contents of your handbag. Clothing items, watches and mobile phones can also be covered along with sports equipment – though this is not usually covered when it is in use. The key is to check your policy and never assume that items are covered.
Garden plants are increasingly covered in contents insurance policies – treat your garden as another room and add up the costs of replacements. High value items, such as those more than £1,000 in value, will generally have to be considered separately from your contents policy.
Similarly to building insurance, contents insurance offers protection against various perils including:
• Fires
• Storms/flooding
• Explosions
• Theft and vandalism
Policies can also include cover in the event of an injury in your home. Furthermore, some contents insurance policies would also cover you for legal liability if someone were injured in your home due to your negligence or lack of upkeep of the property.
In part four we take a closer look at the different levels of cover available.
For a Free Building and / or Contents Quote please complete the form at the top of the page