There are a number of things that you need to consider before you decide to buy home insurance. It is important to keep in mind that cost is not the only factor when it comes to choosing the right home insurance. You may need specific levels of insurance cover in many areas. Here is a list of some of the areas that should be considered carefully before you buy that home insurance policy.
When it comes to the rebuilding cost of the homes, many people tend to overestimate it as a significant part of the value of your home is due to the land and not the building standing on it. You can easily get an estimate of the rebuilding cost of your home by entering all the details in the home insurance comparison service by Confused.com. Usually, this estimate will be significantly lower than the market value of your property today.
Cover for Your Possessions
You need to work out the amount of insurance cover you need for the contents of your home so that you do not have to pay out of their own pocket in case something goes wrong. You may have to pay out of your pocket if you think that the content of your house is worth £30,000, but the total value is approximately £40,000.
If you make a claim for insurance money for £4000 worth of stolen content from the house, which is equivalent to 10 % of the insurance cover, the insurer may pay you just £3000 which is 10 % of the sum insured.
In simple terms, you will have to pay £1000 out of your pocket due to the underestimation of the insurance cover you needed. The best way to correctly estimate the value of the contents in the home is to do a room by room inventory.
Normally, homeowners are protected from any accident that damages their buildings under the basic policy. Usually, this policy covers the damage done due to a car crashing into the home or damage to the pipes, drains, cables, bathroom fittings as well as glass and certain other things. It is recommended not to pay additional premium for the accidental cover if there is enough protection available in the basic policy.
The basic policy for accidental damage usually also covers the contents of the building including computers, glass, mirrors as well as home entertainment equipment. However, it is important to thoroughly read the policy as there are usually some exclusions for damages caused due to maintenance, repair or cleaning.
While it is true that a lower excess amount can save you a lot of money in terms of insurance premium, the truth is that you should opt for a high excess only if you are not likely to file an insurance claim for low amounts. If you file claims for low amounts, it will increase your insurance cost in the future. Also, it is important to make sure that the excess amount is within your budget.
One of the most common claims is Escape of water but in such cases, the excess is not the same as in the main section of the insurance policy. Therefore, it is important that you should double check the excess for escape of water and make sure that it is affordable.
Cover for Valuable Items
Some of the valuable items on insurance policy include sports equipment, jewellery, music players, cameras, watches and other such things. The cover for valuable items should cover the cost of all such things. It is also important to ensure that the limit for a single item covers the most expensive possession you have. It is also important to include all the musical instruments owned by you when you buy a cover for the valuable items.
Some of the expensive items may also need a special valuation. Another important thing to mention is that all the insurance policies are not equal. Therefore, it is important to ensure that the policy has a high enough level to cover the losses of credit cards, money, mobile phones and all the other things.
Away from Home Cover
If you stay away from home for long periods of time, it is important that you have an insurance cover for possession in the home. Some of the insurance companies also allow you to add the possessions of your children to your own policy instead of them getting their own student cover. However, it is important that you compare the cost of both to figure out the cheapest option.
Insurance Cover for Frozen Food, Gardens and Keys
It is important that the insurance limit for loss of keys is high enough to cover the loss. Some of the insurance policies do not have any upper limit for contents in garages and outbuildings other than the overall contents limit. However, some of the policies also come with very small limits.
The garden cover works similar to the contents cover in garages and outbuildings. In case you store large amounts of frozen food that cannot be cheaply replaced, it is important that you have enough insurance cover for your losses.
New for Old
Most of the insurance policies should provide cover for the increased value of contents during weddings as there are a lot of presents in the home. The cover should be high enough for the losses. It is also important that the cover for business equipment is high enough to cover the losses if you need it.
Some of the insurance policies also provide cover for removal of squatters. The new for old insurance cover is also offered by insurance companies. However, it is important that the limit for total contents is equivalent to the cost of getting the new items for you to benefit from the cover.
Alternative Accommodation Cover
It is important to ensure that the insurance company should also offer cover for costs of alternative accommodation in case the building is not inhabitable after suffering some damage.
If someone gets injured due to items in your home, it may prevent them from earning a lot of money over their lifetime. Therefore, it is important that the liability insurance cover and the public liability insurance cover should cover domestic employees. They insurance policy should also cover the belongings of your visitors if you have guests staying over frequently.