Who doesn’t want cheaper home insurance? The Insurance Blogger looks at the basics of what’s covered and what isn’t covered and looks at the importance of making an inventory.
Home insurance comes as a sum of two halves – buildings insurance and content cover:
Buildings insurance is cover for damage to the structure of your home and other buildings, like garages, sheds and greenhouses.
Homeowners would claim off their buildings insurance for incidents like flooding, fire and subsidence. Comparatively less damage is also included, like losing tiles in a storm.
Contents cover safeguards your property inside the home and around the property. Claims to replace personal belongings after a break-in are common – so are calls to replace carpets after burns or spills.
Every homeowner or tenant should consider taking out home insurance.
The costs are worked out against some simple risk factors – where you live and the type of property are important.
Buildings insurance is then rated against the cost to rebuild your home in the event of a disaster. That’s the cost to clear and build a new home – which is considerably less than the sale price of a home.
Contents cover is calculated according to the replacement value of your possessions.
A good way to buy cheap contents insurance is to inventory your home to work out the replacement cost of everything you own – and that includes what is in the loft, garage and any shed as well as garden furniture. Go around your house or flat and list how much you consider every item is worth.
Remember some special house contents insurance rules:
- Collections are not valued as one single possession but as individual items – so a music collection is the replacement cost of each record or CD, not their total value.
- Tell insurance about expensive items – most have a rule that only ‘named’ items worth more than £500 each are covered on a policy. Check, because the threshold varies between insurers.
- Don’t forget belongings like clothes or fittings in rooms like carpets and curtains.
- Many policies do not cover electronic downloads like mp3 music or software
After noting everything down, add up the replacement cost – the total will probably surprise you – and make sure you only pay for the cover you need and that those special items are protected.