Financial Planning,  Home and Houses,  Money Tips

The Facts to Know About Home Insurance

Home insurance can insure us for buildings and contents, either separately or as a combined policy. Companies such as one sure insurance will make this easy, by allowing us to obtain quotations via their website and by providing all the information online that we need to purchase insurance for our home and its contents.

During this article, we shall consider what is covered on a buildings and contents policy, individually or together, and the extra kinds of cover that is also available.

 

Buildings Insurance

Buildings insurance will cover the property, outbuildings, and fences. It covers structural things. The cost of replacing pipes drains, and cables will, for example, be covered by this part of home insurance. Frost can damage pipes, so it is good to know that they are covered. Drains have been known to sink, but then, you will hope that it is not due to subsidence, which is a word all insurance companies fear.

When it comes to location, you will find it easier to obtain insurance when there is no history of subsidence, which can be excluded, and when not near a water source, quarry, or mine. This will make your search for competitive quotations without exclusions hard to come by. 

The larger your property, which goes on the number of bedrooms, the more you will pay to insure your building.

Excesses are applied to policies insuring buildings, as they are with policies for contents, to keep premiums down. Also, combining the two policies should save money because all your cover is being kept with the same insurer. It will certainly keep the admin costs down, which is eco-friendly, with or without a paperless system. It will also be one premium to pay, which can be spread over instalments if you prefer.

Where renewal dates are different for whatever reason, a combined policy will be one renewal date to remember too. Although, you should get a reminder, and this is the time to look for the most competitive quotation that you can find.

 

Contents Insurance

Certain postcodes will attract higher premiums than others. It depends on the crime rates for your area.

Having approved locks, alarms, cameras, and any security device fitted to your home has the potential to reduce your insurance premium. It all depends on whether these devices are approved by the insurance company or not. It is good that they are protecting your property, but it is better if they are insurance company-approved.

The three main types of locks that insurance companies generally approve include five-lever mortice deadlocks, night latches, and key-operated multi-point locking systems. Anything that deters thieves because it is extremely hard to bypass has a higher chance of making it onto an insurance company’s list of devices, which will mean a discount for policyholders.

In terms of door locks, the deadbolt door lock is considered the most secure kind of key lock and is, therefore, used on the exterior doors of homes. They are available as single or double cylinders. Deadbolts are rated according to their strength. This gives them a grade from 1 to 3, with 1 providing the most security.

Security cameras are good, if they are working, but even a false one can deter thieves. A claim will not help keep next year’s insurance premium down. Insurance companies pay out for them but will be obliged to load the premium the next year. Switching insurers will not eliminate the loading but may be your option for obtaining a cheaper quotation, in general, to compensate for the increase.

 

Additional Cover

Accidental damage cover means that, where an insured person damages an item, but it is their fault, they can still be insured for it. This might be where a household iron is accidentally dropped on a carpet and burns a hole in it. 

Many carpets are claimed for each year. They are not cheap to replace because there is the cost of the carpet itself and the fitting cost to consider. Insurance is, after all, intended to put back the insured into the financial position they were in before the claim was made.

“All risks” cover will mean that objects are insured outside of the home. This is useful if you have a hobby and want to obtain insurance for musical instruments or sports equipment that are taken to another location. Anything of value should be accounted for separately when it comes to insuring contents. Antiques and heirlooms are an example of this.

 

Home insurance is about finding an insurer that can offer you the best rate, yet still maintain your level of buildings and contents cover that you already have on your policy. You may be able to find accidental cover for no more than when you had a policy without this cover, by finding the right insurance company and realistically adjusting the amount you need to be insured for. This should be constantly reviewed as house values alter and you gain more items. Policies will, anyway, likely be index-linked per inflation or market fluctuations.

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