Home insurance brings extra security in many ways. Knowing you’re covered if a storm blows the roof off or a cat burglar steals your vintage Hello Kitty handbag not only offers peace of mind – it could save you a fortune.
That’s why it’s so important to choose the right policy.
To help, here are our top 10 things you need to know about home insurance.
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Two’s company
There are two kinds of home insurance: building and contents. Building insurance covers the building, permanent fixtures and built-in appliances. Contents covers your belongings, electrics and clothes (right down to your cherished Tigger onesie).
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Homeowners
If you own your property, as homeowner or landlord, you need both types of insurance. Building covers Acts of God, such as floods, storms or falling trees but make sure fire, vandalism, impact from vehicles and subsidence are covered too. Contents will take care of your worldly goods.
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Tenants
If you’re renting, you only need to focus on contents insurance for everything you’ve brought to the property. Students, in particular, should cover items such as laptops and phones against accidental damage, vandalism or theft.
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Don’t lose out
If you’re prone to leaving your bag on the bus or dropping car keys on a hill climb, specialist policies allow you to claim if you lose something important.
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Added protection
Super-valuable items, such as Granny Ina’s antique bracelet, are not usually covered under basic terms. If you need these insured, you must make special provision for them.
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Do your sums
Be extra careful when valuing contents. If you underestimate the cost of something, the insurer is under no liability to pay the extra. Saying your Tibetan Throat Singers CD collection is worth £750 when it will cost £1000 to replace means you’re down £250.
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What’s your excess?
It’s amazing how many people don’t consider the excess in their policies. Often you’ll need to pay a bit on top to get a pay out – but you don’t want to have to pay an excess that’s more expensive than your stolen phone.
Consider the excess that’s best for the value of your goods.
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On the move
When it comes to your new laptop, make sure you’re covered when you’re out and about. A bonus of including travel in your home insurance is you won’t need to take out separate cover.
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New-for-old
A cash pay-out for a five-year-old home cinema system will probably leave you short when buying a replacement. By going ‘new-for-old’, an insurer must give you a brand new system.
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Shop around
Mortgage providers like to offer home insurance straight away, but it pays to shop around – get the deal that best suits you and your lifestyle.