An insurance policy for the home is a basic requirement for many households, and it’s no surprise that the UK home insurance market is quite competitive and affords the opportunity for many people to get a good deal. A cover plan is typically quite cost effective and for a few pounds a month somebody can protect their home and its contents against some of the more common and less common eventualities. It’s also important to get a policy which is not only cheaper but also effective, appropriately covering everything in the home and which will not leave you short if you face an unfortunate crisis.
A Home Insurance actually involves two types of cover, referred to normally as buildings cover and contents cover. Many people wrongly believe that buildings cover is a legal requirement for somebody buying a home, but in fact it is simply a condition of a mortgage being granted by a lender. Contents cover is optional, and may not be necessary for somebody who does not plan to live or keep their belongings in a building or rent out, for example.
UK Home Insurance policies are often supplied directly by building societies and banks, an rather than agreeing to their deals, a mortgage borrower could try to look elsewhere and compare their prices to other deals.
To start with a buildings insurance policy covers the actual building. This might seem obvious, but there are a few blurred edges. For example, while pretty much every policy covers against fire and other damage to the actual structure, not everyone will pay out towards damage done to exterior walls and the garden, for example. It may also be worth checking if a greenhouse or shed is covered by a buildings insurance policy. Generally speaking, permanent fixtures and fittings in the home are also covered by buildings insurance, and this generally applies to anything somebody would not take with them if they were moving, like kitchen and bathroom fittings, light switch fittings, and plumbing.
Things you might want to look out for include ensuring the maximum insurable amount is enough to rebuild your home, should it be destroyed by fire, or a flood. It is also worth checking if some more likely eventualities are covered, such as earthquakes and storm damage, possibly from trees, for example.
The other subsection of typical home insurance deals is contents insurance, which is the part of a policy which actually applies to the general belongings in the house. People renting a house will normally only need contents insurance, as the actual owner of the building will normally have a policy which covers the structure. Contents insurance applies to everyday things like furniture, electrical goods, books, CDs, jewellery, clothing and so on. It generally protects against theft or damage from theft, fire, flood and in some cases accidental damage to property – although it could be worth checking to see if this is included or is an optional extra.
It is therefore possible to get a UK home insurance deal which covers the needs of virtually any household – and it could be important to look at policy extras and exclusions to check that you are fully aware of what is and is not covered in certain circumstances.
