General Home Insurance
The costs for all General Home Insurance policies vary based on things like the size of the property and the type of cover you choose; unfortunately it’s not a tick box exercise of just going for the cheapest policy to say you have it – it’s about making sure you have a policy that meets your needs and covers you in the event you need to claim against it.
What is buildings and contents insurance?
If you own your own house, whether that’s a one bedroom flat, or a three-bed detached property, you’ll need to have buildings insurance in place to ensure you would pay for any necessary repairs, should your home suffer any damage.
Buildings insurance is usually a condition of your mortgage and you will need to take it at the point of exchange.
If you own your own home, it makes sense to have this type of insurance in place and without it, you could be putting your mortgage and your home at risk – something you won’t want to do
What are the Options:
Buildings Insurance
Buildings insurance covers the structure or fabric of your house, so the walls, roof, windows, floors, and often fixtures and fittings too. For instance, if you have a fitted kitchen or bathroom, your insurance is likely to pay for any repairs you need if they get damaged during your time living there.
By taking out home cover, you will be covered against a range of risks, an example of such are: fire, lightning, earthquakes, storms, floods, theft, vandalism, falling trees, water leaks and subsidence etc. Accidental damage to underground pipes and cables will normally be covered too. However, it is critical to check the actual wording of the policy to know what is and what is not specifically covered.
The buildings element of the insurance cover includes the cost to repair or rebuild your home if it is damaged to a set rebuild cost although some insurance companies have an unlimited level of cover.
Contents Insurance
Contents insurance is for things like furniture, TVs, personal belongings and some types of flooring, including carpets. A simple way of putting it; if you turned your house upside down, contents insurance will cover you against the belongings that fall out of it.
Contents insurance covers you for your household contents – things like the television, stereo, computer, furniture etc. Generally, it is the total value of everything that is in your home that you would take with you if you were to move. Different policies provide different levels of cover but usually you’ll be covered against theft, fire and flood.
With most contents insurance there is the ability to insure your personal possessions away from the home. This optional cover allows you to insure your personal items normally worn or carried outside the home, e.g. watches, jewellery, cameras, anywhere in the world for up to 60 days a year.
Accidental Damage Insurance
Accidental damage cover also insures your belongings against any accidental damage. It’s worth keeping in mind that accidental damage cover is usually optional so don’t assume it’s included in your policy and there will be an additional charge.
Do I have to buy them as separate policies or a joint policy?
You can buy both buildings and contents insurance separately or as a joint policy. If you buy a combined policy you normally get a discount on the joint policy.
How much cover do I need?
How much cover you need to have in place will depend on the value of your property and your personal possessions.
Think about what you might need to replace in the event of a disaster or burglary and more importantly how much it would cost to replace these items. This will help you work out how much cover you might need to take out.
Your advisor will check what the individual insurer and policy cover is, as policies vary from one insurer to another in exactly what and how you are covered, as well as for how much. There are often exclusions to policies, so you will need to confirm you are happy to proceed with the proposed cover.
