Home Insurance: What is it and what are the advantages?
An insurance policy is a contract where the insurer agrees to provide a specified type of protection against an uncertain event or to provide compensation for a loss.
We are all used to having car insurance, we cannot drive without it as it’s a legal requirement. Most other insurance policies are optional.
At times when money feels stretched, it’s tempting to look at where you can cut back. But we would say, this is a time to make sure you have your policies in place and to ensure they cover you for what you need.
Take home insurance. This is the umbrella term for both buildings’ insurance and contents insurance. If you have a mortgage, then often you will have a buildings insurance policy as part of the terms of that mortgage. You could have taken it out some time ago and not looked at it since.
Read on to find out why we think you should review this regularly and the advantages of having comprehensive home insurance cover.
Why is it important to have Home Insurance?
This type of insurance covers both buildings and contents insurance. It protects you against damage to, or destruction of buildings, often including structures such as garages and sheds. It can also cover the cost of replacing items such as pipes, cables and drains.
It also covers everything inside your home, so all your furniture, devices, and personal belongs. Generally speaking, it pays for the damage to, or loss of, your personal possessions whilst they are inside your home.
Some contents insurance policies provide cover for personal possessions temporarily taken away from the home by you, such as bikes and laptops. If you have expensive items, you need covered away from the home it’s important to check that out with your provider.
In the worst-case scenario – your insurance should cover the full cost of rebuilding your house and replacing all your belongings
It won’t happen to me!
What are the risks of something happening to your property? We are not in control of external circumstances such as storms and freak weather, or what’s going on outside of our home’s, on the street or neighbouring properties. Leaking pipes, damage due to storms, or car collisions can all mean costly repairs to your home.
When it comes down to it, the cost of a policy will be a whole lot less than repairing damage or replacing all your belongings.
Do you have to have it?
No, you don’t. But we would say you need it.
Home insurance is not just about protecting your building and savings, it also provides peace of mind and security.
It’s important to consider the cost to you if you don’t have any policies in place?
If you are renting, then your landlord should have a buildings insurance policy and it’s your choice to take out a contents insurance policy.
What about the small print?
When you take out a policy, it’s so important to check that it covers everything that you might need. It’s also important to review your policy regularly. You may have had a policy for several years and it may not cover upgrades you have made to your home or belongings.
That’s why we would recommend talking to a professional, reviewing your insurance policies regularly and getting good, trusted advice.
Because we keep it really simple. We have a 5-star Defaqto rated home insurance policy and all you have to do is answer a few easy questions to get a quote. Which means, you don’t have to know every little detail about your building or type of locks you have on windows and doors.
Our trained professionals have years of experience and will talk you through what you are and are not covered for. There is no one size fits all so we will look at your circumstances and take everything into consideration to make sure you are covered.