When moving into a new place it’s easy to overlook some of the straightforward arrangements, and many people have experienced the sudden realisation that they have moved into a new house and have not yet arranged home insurance cover. A sudden moment of clarity is more likely if you are moving into a rented house, as in the vast majority of cases someone buying a house will have had to put home insurance in place as a condition of the transaction. Although it is rarely an overly expensive product, it can be important to get a home insurance policy which is both effective and good value.
Home insurance cover normally comes in two forms – buildings insurance and contents insurance. Buildings insurance will not normally be needed by people living in rented property, as it is typically the responsibility of the building’s owner and protects against damage to the building itself.
Contents insurance is generally needed by both tenants and property owners, and covers their general everyday property, like furniture, electrical goods, clothing and other belongings.
In many cases a home will be the biggest expense of someone’s life, which means an adequate insurance policy is very important. When it comes to buildings insurance a good policy should protect the structure against damage from a fire, flooding, or vandalism, earthquake and a range of other slightly more usual eventualities, like being hit by a vehicle or something which has fallen from an aircraft. Believe it or not, it does happen, and it can be costly to repair when it does. A policy should normally also protect against storm damage, which will probably include any repairs needed because a tree has fallen on the house.
Failure to declare a heightened risk of something happening, such as your house being in a flood risk area, could invalidate your policy, so be honest.
Although the above might sound quite comprehensive, the buildings side of home insurance cover will not cover everything, and typical exclusions include damage from war and terrorism. Remember when thinking about buildings insurance that it is important to get a professional survey done before you buy a home, which can ensure the accuracy of your policy. For example, something like subsidence may only be protected against if you have had a survey completed.
Contents insurance essentially protects all of your worldly possessions, and this is everything from your clothing to that expensive television and hi fi System. Of course, items of sentimental value are irreplaceable in many ways but it is important to ensure at least the economic value is protected.
The contents side of home insurance cover may include protection for your personal belongings while you’re out of the house, for example replacing what is in your wallet or purse if it is stolen from you – however different products have different approaches to this, and you should check with any potential provider. As far as exclusions go, you can typically expect an insurance company not to payout if you have wrecked something due to your own DIY efforts, so check your policy wording carefully before carrying out any home improvement work.
