Home insurance is an absolutely vital policy for any homeowner, as it protects the single most valuable asset they own. As with most types of insurance though, deciding on the best policy for you can often be a tricky business, thanks to the plethora of different possibilities offered by the many different companies. So, what exactly are the most important aspects of a policy to look for, and how can you find the best possible deal?
Before going any further, it is important to mention that home insurance can generally be split into two areas: building insurance and contents insurance. Those renting their property will only need the latter, while homeowners are strongly encouraged to take out both. Therefore, the article below will look at these two different aspects individually.
Essential Aspects for Building Insurance
There is only really one important thing to look at when it comes to building insurance, and that is the amount the insurance company will pay in order to rebuild your home. Therefore, it is absolutely vital that you get an accurate rebuild valuation before accepting any building insurance quote. If you have just bought your home, this figure will be on the paperwork; if you’ve lived in your home for a while, there are many companies out there able to provide this service.
But why is it so important to get this figure just right? Well, there are two reasons. Firstly, if you undervalue your home, you could find that the total paid out by your insurance company doesn’t cover all costs, therefore leading to a big bill coming to you. Secondly, if you overvalue your home, you’ll probably find that your insurance premiums are far too high. So, it pays to get the valuation right, and to check the valuation on a regular basis.
Important Features of Contents Insurance
Contents insurance doesn’t protect your building, but instead covers you for the items inside it – expensive things such as jewellery, electronics and furniture. The insurance company will then pay you in order to have them replaced in the event of fire or theft, however they will only pay a maximum of the amount agreed. Therefore, the most important thing to consider when it comes to contents insurance is this total amount. This will therefore necessitate you completing a full inventory of the valuable items in your home, and then deciding on a figure that will cover them.
It is also really important to look at the single item limit as well, as this is the most an insurance company will pay for an individual item when damaged or stolen. For example, you might have some artwork worth £10,000, however if your single item limit is £2,000 you’ll lose a lot of money should it go missing. It is often the case that simply taking out a completely different policy for these high value items is the best idea. Another option is to talk to the experts here at PayingTooMuch.com who can arrange a ‘high net worth’ policy for you.
Many people are also often caught out when they realise that outbuildings are not covered in their insurance. When you think of the amount of valuable stuff kept in your garage or shed, the financial implications of this should become clear. So, you should check that theft from outbuildings is covered, and how much the cover is worth.
Finally, you should also check that money in the home is covered, especially if you have a habit of keeping large amounts, even if stored in a safe. This is because many contents insurance policies don’t include money in the list of things that are covered. The amount you need is really down to your personal habits, but the important thing to remember here is that you have to check – never assume anything when it comes to home insurance.
Finding the Best Home Insurance Policy
Long gone are the days when you needed to phone around every home insurance company, getting individual quotes from each of them. Our friendly team can do the legwork for you so give them a ring on 01243 219333 to get a competitive quote. Then all you need to do is choose the one that fits your needs the best.
