Home insurance is not the sort of purchase you think about every day, but when you do come to buying or renewing a policy, it is essential you take the time you need to consider every element of the policy. This helps to ensure that, when it does come to making a claim, the protection you need is in place and you are not left short changed. Here is our guide to five essential home insurance considerations:
Buildings and contents cover
Buildings insurance provides protection against damage to the exterior of your property, as well as any permanent fixtures and built-in appliances. Contents insurance covers your belongings, including furniture, clothes and electrical items.
If you’re a homeowner, both buildings and contents insurance should be taken out to ensure the cover you need is in place. Buildings and contents cover are separate policies, although some insurers will offer discounted rates on combined policies. If you live in rented accommodation, your landlord should take care of the buildings insurance on your behalf.
Do you have enough cover?
When buying your cover, you need to ensure that if you do need to make a claim, you are not going to be left out of pocket. When taking out your buildings insurance, make sure you cover your home against its rebuild value, rather than its market value. Simply give us a call and we can calculate the rebuild value of your property on your behalf.
When estimating the amount of contents cover you require, go room to room noting the value of items such as computers, clothing, furniture, computers, jewellery and household appliances. Be wary of undervaluing the value of your contents. Overvaluation will not necessarily increase the cost of your cover, while an undervaluation will leave you out of pocket should you need to make a claim.
New for old cover
We advise our customers to opt for ‘new for old’ contents cover, as this replaces your existing household items with like-for-like new products, rather than the amount the old items were worth.
This is one consideration many homeowners overlook, leaving them in a sticky financial situation if they need to claim. As an example, would you be able to replace your two year old television set with an equivalent product if you only received the amount it was worth now?
Do you own any valuable items?
If you are lucky enough to own items which carry considerable value, whether it’s jewellery, antiques, artwork or state of the art electrical items, then these may not be covered under the basic terms of your cover. You should always ask your insurer whether these items are included under the terms of the policy.
Away from home cover
If you have expensive household items which you often use away from the home, such as a laptop or a bicycle, then is it worth covering these items against theft or damage?