Tips for Properly Insuring Your Home
Eastern Eye Staff
Finding the right type of insurance for your home can be a challenge, and not just in terms of getting a good deal.
Insurance is hugely variable, with many different types available to a homeowner. Not only that, but some policies labelled the same, can actually be different. For instance, some contents policies might cover accidental damage; others will not and yet they will be both sold as contents insurance.
The home insurance market is evolving in the UK, and Reinsurance News believe premiums will fall in 2021. That suggests the market will be packed with competition, options and of course, pitfalls for the end-user as providers battle for your business. Previously, our article ‘Tips for Finding the Best Deals Using Price Comparison Websites’ aimed to help you navigate the tricky task of getting the best price, but that is only the start with insurance. To bring a little clarity to the situation, we have a brief guide on the different types of home insurance available to you.
This type of policy will only apply to people who own their home, and it is usually a stipulation of a mortgage provider that you have it in place. Buildings cover protects the fabric of your home, the bricks and mortar, the roof and general structure. Mortgage companies usually demand it to prevent a disaster from happening and you simply walking away and leaving them with a non-saleable asset. This is not to be confused with mortgage protection, something else you are likely to be offered if you buy a house. Mortgage protection is not insurance on your home but on your ability to pay the mortgage.
Everybody should consider contents insurance, even if you are only renting. This is solely the responsibility of the person whose possessions are being protected. Contents insurance is perhaps the most varied of all policies, with differing levels of cover, from how protected you are to how much you are able to claim. You may also find certain items are not covered and you need additional protection, such as mobile devices or computer equipment provided by your employer which you use at home. Also, with the Internet of Things bringing more technology into our homes, Yahoo claim that some policies are now specifically protecting those elements of your property.
Whilst buildings insurance protects the roof over your head, and contents will ensure your sofa is replaced in a flood, neither will cover the repair of a leaking pipe that causes damage. That is where services insurance comes in, and it is quickly becoming an essential part of a homeowner’s insurance plan. In HomeServe’s breakdown of plumbing cover, they discuss how items such as the pipes and water supply into your home are protected, but that you can also add other areas to the policy, too. Gas heating, your boiler and even the electrics can be protected in your home, for a modest fee each month.
There are other types of insurance, far more specific, that you may wish to include as part of your insurance portfolio in the home. For instance, if you intend to travel for six months, you can get empty home insurance. If you are conducting a self-build, there is a specific policy to cover that, too. Landlord policies are popular for people renting out a second home or a holiday property, and they offer additional protection from standard home insurance.
The key is to identify your needs, isolate the specific risks to your home and mitigate those with the right policy, or policies for you.