We know that there are more exciting things to focus on than home insurance, but don't fall into the trap of putting off your insurance in favour of fun endeavours, such as choosing sofas for your living room! we all know that prevention and protection are far better than cure, which is why we want to tell you about all the different types of home insurance, so you can make an informed decision as to the type you actually need. Estate agents can be valuable sources of advice, if you are buying a property through them, but we've got a handy go-to overview for you right here, so let's get educated!
As well as offering you peace of mind that the structure of your home is protected, this insurance also covers permanent installations inside, such as kitchens and bathrooms. It is also, usually, extended to cover garages and any garden outbuildings, but not fences and walls.
It's by no means law that you have to have buildings cover, but many mortgage lenders will refuse to release your funds until a policy is in place. Most commonly, homeowners will take out a combined building and contents policy, for convenience and savings.
Everything in your home is covered by a contents insurance policy and when you stop to think about how much you actually own, you'll see that this is essential! Policies will pay out to replace anything lost by theft or damaged by anything including flood and fire.
Most people struggle to come up with a rough estimate of how much it would cost to replace everything in their homes, but most insurers offer a simple to use calculator.
If you rent a house that you own out, you will need specific cover to protect you from any spiralling maintenance costs. Normal buildings cover isn't enough, as you won't personally be living in the property and you will want to look out for a policy that pays out should you lose rental income. You should also have public liability cover built into your policy.
When you're renting your home, you don't need to worry about the building cover, as your landlord will have that covered, but you do need to protect everything inside the property that is yours. It's worth noting that this goes double for shared houses, as the more people you live with, the more chances there are that your items will get damaged.
Certain landlords will expect you to take out contents cover, as a matter of course.
Listed buildings are always beautiful, interesting and have a little more history attached to them and the result is that they are always more expensive to repair! With a like-for-like repair legislation in place for most listed buildings, specific cover will be invaluable!
High-value buildings are generally considered to be those that would cost £500,000 or more to rebuild, in the event of total collapse. High-value cover is normally split into building and contents cover, as residents are generally assumed to have a number of expensive valuables, such as art, antiques and jewellery.
High-value cover is worth taking out, as normal policies will have a cap on how much you can claim for lost items, which is unlikely to be the full value if you are a collector of various fineries.
If you've taken the road less travelled and built a brand new property, which is considered to be a little unusual, specific non-standard construction insurance will be well worth considering, as you won't be penalised for trusting an innovative architect and pioneering construction team.
Holiday homes are such a wonderful investment, but being left empty for a lot of the year, they are are at increased risk of burglary. Specific holiday home insurance is very clear about properties not being main residences and the premiums are priced accordingly.
Why not think about how you can lower your premiums, by taking a look at this Ideabook: Locking down your home security.