Getting the Right Cover: What to Consider When Taking out Home Insurance
Home insurance: it is something that every owner needs when they buy or rent a house. Whether it’s just to protect their prized possessions or guard themselves against the potentially severe financial cost of their home becoming damaged as a result of extreme weather or something more preventable, it’s a must-have as a safety net. It is not an essential as with car insurance however without it you could face problems.
But what do homeowners need to know?
According to this blog post, a survey revealed that as many as four out of five households in the UK are underinsured.
This means that they either have only basic cover or none whatsoever, which seems pretty foolish, but there are questions to be answered about what the right amount of cover for a home should be.
Ideally, the home itself and all its contents should be covered, so a policy that covers building and contents is the way forward. Most insurance providers will offer a combined policy that covers both or one of the two, which could help to save time and perhaps a little money too.
Buying separate policies for home and contents, in most cases, doesn’t make too much sense though. If you are renting then your landlord should have landlord insurance, although this is not law in all cases. Again there are two types and these should be discussed with your landlord or letting agent so that you can arrange the appropriate cover.
What to do?
If you are looking to try and get insurance it is never too late to get the right policy for you.
However, you need to consider what you want to be insured against; so making sure that you understand the policy before you purchase it is essential. You do not want to be making a claim and find that you are not covered by the policy.
One thing to bear in mind when taking out a home insurance policy is the exact value of your home and its contents, some of the more expensive items can be insured separately if necessary. To be on the safe side, slightly overestimate both however bear in mind that this may affect the cost of the cover.
It can be hard to gauge how much your property and possessions are actually worth before they become damaged. Also, try to choose a policy that covers you for flood, fire and other forms of damage, and not just theft. Some policies will have small print that means that they do not cover for natural damages so checking all the paperwork is essential.
Getting the right cover, whether you are renting or buying will help you keep your mind at rest if anything was to happen.