With constant threats of fire, floods, storms and robbery, insuring your property has become a must-have necessity in recent years. Every home has precious valuables, sentimental items and belongings that must be protected in case of an unfortunate accident, which is why it is important to consider obtaining property insurance. There are a few things to think about before agreeing on a particular policy and these five points will help you to be better prepared for the decision.
1. Types of Insurance
There are two different types of property insurance; Buildings Insurance and Contents Insurance. Buildings insurance covers aspects of your home that are a part of its structure such as the walls, windows, fitted kitchens, roofs and other permanent features of the house. Content Insurance, on the other hand, covers the items within your home that includes the furniture, electronics, valuables and household goods and possessions etc. According to Money Supermarket, buildings insurance costs an average of £156.95 a year whilst contents insurance costs around £80.58 a year.
2. Holiday Home Insurance
If you have invested in a property abroad and own one of those fantastic villas in the Algarve area then insuring this home is very important. You need to make sure that your house is protected during your absence and the only sure way to do this is to purchase insurance. Make sure that you read the small print before making your final decision on a policy as some insurance companies may not cover all of your needs. Another consideration for home owners renting their property out to people as a holiday home is whether or not your policy covers liability coverage in the case of an accident in your property.
3. What does it cover?
Before agreeing to commit to home insurance it is a good idea to find out what exactly the policy will be covering. Some companies will refuse to cover certain aspects of your home such as the garden and outdoors area. You might want to include your shed tools, BBQ equipment or bicycles in your insurance policy in which case you need to make sure that all of your individual needs are covered. You do this by reading the small print and asking the right questions. According to Go Compare, 72% of insurance companies cover £1,000 or less for ‘contents in the open, of which 20% have a £500 limit – and 5% of policies offer no cover at all.’ For this reason doing your research before you commit is a must.
You need to be aware of the excess that comes with your insurance plan. The amount that you pay towards any claim is the excess and they come in two different types. The first is the compulsory excess that will be given to you by the insurer and will go towards any claim made. The second is voluntary and the amount you have agreed to pay towards a claim.
5. Additional Protection
Many insurance companies offer a range of ‘add-ons’ that you can choose to bolt on to the original policy. These additional options often include accidental damage, home emergency and legal expenses cover. You may be required to pay extra to include these covers within your existing policy. The most popular add-on that homeowners choose to include is accidental damage cover which is one of the most common reasons why a claim is made to an insurance provider.