A guide to choosing home insurance

A guide to choosing home insurance

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For many people, their home is their largest asset and biggest investment, and so it makes sense to protect it with insurance.

There are two types of home insurance, buildings and contents insurance. Buildings insurance will cover the structure or your home, such as the floors, walls, roof, and permanent fixtures and fittings, while contents insurance covers the possessions in the house, such as electrical goods, furniture and jewellery. If you have any damage to the house caused by a fire or storm damage, buildings insurance will cover this, while contents insurance can be used to replace anything that is stolen or damaged.

If you want to protect your property and the things within it, having these insurance policies in place is key.

 

Why get property insurance?

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Home insurance can help you rebuild a property or repair it should it be damaged by fire or a storm, while contents insurance can help you replace things or receive monetary compensation to the value of an item that is stolen.

While it is not legally mandatory to have buildings insurance, it is highly recommended in order to protect your property and to also ensure you can get a mortgage (some lenders will reject an application if there’s no insurance in place).

 

Are there any cases where I can’t get home insurance in the UK?

You can get insurance for any property, but policies may contain caveats in certain cases, or may cost you more depending on the home in question.

There are some exclusions that can apply – for example, if you live in a flood-prone area, you may not be able to procure coverage to protect against consequential water damage, while other common exclusions include frost damage, Acts of War, Acts of God, or subsidence. Similarly, if you have a home such as a listed property, a flat in a large or converted block, an unusual property (such as a conversion or self-build), a former council home or a thatched home, you may also have to hunt a little harder to find appropriate insurance. It is still possible to insure these homes, but bear in mind you may have to pay a higher premium in order to do so.

 

How much does home insurance cost?

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There are a number of factors that will impact how much you have to pay for insurance, such as the value and condition of the property, the type of property, any past insurance claims, the security of the home, your credit rating, and the location of your home.

You may be asked to provide the value of your home along with the estimated value of your contents to help provide adequate coverage. This can be a time consuming task, but it’s worthwhile to ensure you obtain adequate coverage for your property.

 

In conclusion

Whether you want to have both buildings and contents insurance or just one of the two, making sure you take steps to choose something to protect your home is crucial.

In order to ensure you get the best rate, make sure to compare quotes from numerous lenders to view your options. Decide on whether you want to pay a higher premium or excess, and remember to budget your home insurance into your monthly fees. While your mortgage provider may recommend an insurer, you are not bound to necessarily go with this choice, so make sure to take a look around to get the best possible rate for your specific budget and property. Finally, make sure your insurance providers are fully accredited and have good reviews, and utilise sources such as The Association of British Insurers has a great deal of industry data.

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