Home insurance is essential for any property owner to have in place – should anything happen to your home you are covered and can pay for repair to damages and replace possessions.
1. The two types of home insurance
Home insurance is broken down into two categories: contents and buildings. If you are renting you only need to worry about contents insurance because your landlord should pay the buildings insurance (if they don’t then you need to query this) but if you own your property you must take out both to ensure your home is protected.
2. Shop around
Comparison sites are highly valuable when it comes to researching insurance products and will instantly review the best prices in a matter of minutes for your consideration. Take a look at these policies closely though, because you may find that while the ones at the top of the list are cheaper they don’t offer extras some companies further down might at just a little extra cost.
3. Check exactly how much cover you need
Some people sell themselves short when it comes to the amount of cover they actually need, and then when something does happen they don’t receive enough money.
You could also consider an old for new policy, which instead of giving you cash for the value of your possessions, replaces them with a new like for like product. So if you need a new 32 inch TV you won’t get the money it cost to purchase one five years ago, when you originally bought it, but a brand new one. Here’s a quick guide to valuing your possessions so you aren’t left short!
4. You must also answer those insurer’s questions honestly
One wrong answer could ruin everything when it comes to making a claim in the future. Your answers need to be to the best of your knowledge and as truthful as possible to avoid your policy being cancelled or a claim rejected.
If you do make a claim and find it rejected, but feel that it should have been approved – check first that you gave all the correct details initially and the insurance company’s reasoning and wording in the rejection correspondence. If you feel that they have not provided clear and sufficient evidence for rejecting your claim you can appeal.
A complaint letter with strong evidence as to why your claim should be accepted, or paying for an independent assessment, can encourage an insurance provider to pay out. The Money Advice Service has more detailed information on how to appeal a rejected claim.
5. Cover when moving home
You might want to move in the future so it’s a good idea to consider a policy that covers your possessions away from the property too. It makes no difference whether you’ve sold your home through an estate agent or for cash through We Buy Any Home, as long as your policy covers your belongings when in transit.
Like any insurance policy, ensure all the information you provide is correct, take some time to note the value of the possessions in your property and enjoy the safety and security that comes with taking out home insurance.