our most important asset is your home. If anything should happen to it, you need to know that you are covered. The only way you can do that is through making sure you have proper insurance. Home insurance is the single most important insurance policy you will ever own.
Unlike car insurance, there is no legal requirement to possess insurance. Some people go without insurance, but they are taking an enormous risk. Under no circumstances would we ever suggest not having home insurance to save money.
Before you take out your first home insurance policy, you need to know what it is, what it covers, and how to get the best deal.
There is nothing more important than a good, safe, secure home.
What Does Home Insurance Cover?
Home insurance is the name given to the policy that protects your home, but there are actually three different types of insurance. You have buildings insurance, contents insurance, and combined buildings and contents insurance.
Simple building insurance will only protect the structure of the home and any permanent fittings. The walls, the toilets, and the windows would be covered, but this policy would not protect your personal possessions. Contents insurance protects your personal possessions.
We would always recommend taking out combined buildings and contents insurance to make sure you are never out of pocket. If there’s a flood, fire, an explosion, or you are robbed your insurance policy will cover everything.
What About Accidental Damage and Your Personal Possessions?
Accidental damage is covered, to some degree. You have to check your policy for further details on exactly what is covered and what is not covered. If you want full coverage for accidental damage, this is considered an add-on, so it is going to cost extra.
An additional feature of your home insurance policy is personal possessions cover. These are for the portable items you will take outside of your property. For example, you can cover your laptop and mobile phone using your home insurance policy. You can even pay extra for overseas cover on your personal possessions.
This is where you have to be careful because every insurer will be specific about what they will and will not cover, and in what circumstances they will accept a claim.
Do You Have To Pay an Excess?
An excess is an amount you will agree to pay towards any claim. If you ever had an excess of £1,000 and you were making a claim for £20,000, you will only ever receive £19,000 from the insurer. It may seem like a bad idea to pay an excess, but it can provide you with the benefit of lower premiums.
There are two types of excess, and these are determined by the insurer you decide to go with. A compulsory excess is the kind of excess you will have to pay in order to take out the policy in the first place. You can also look into taking out a voluntary excess, which is where you set out the excess.
You may think that you can increase your excess as much as you like in order to get lower premiums, but the higher you put it, the more expensive a claim on your policy could get. It makes no sense to raise your excess as high as you can for lower premiums if any claim would cancel out the savings you make.
It is best to stick to a moderate excess and pay higher premiums.
How Should You Compare Mortgages?
Every lender is going to provide you with different quotes and different premiums. Apply for mortgages with multiple banks. You are under no obligation to commit to any bank, even if they make you an offer of a mortgage. By comparing different banks, you can get a rough idea as to the sort of prices you can expect to pay.
So How Do You Go About Getting the Best Deal?
There are so many insurance providers in the world today. Getting the best deal can seem confusing because you have so many options on the table and so many insurers that meet those criteria. You need to sit down for an afternoon and think about exactly what you want from your insurer.
Google is your friend because from here you can come across some of the many insurance comparison calculators. These calculators will enable you to compare insurers quickly and easily. Beware that some of the results you receive could be out of date, so take care to consult with the insurer directly prior to committing to any one insurer.