Your home is, for most people, the most expensive purchase that you will ever make and as a result, you will want to protect it against damage and crime. In the event of a misfortune such as a leak, break-in or fire, having a home insurance policy will ensure that you are not left out of pocket.
There are different types of home insurance available which cover different aspects of your home; these come under the sections of buildings insurance and contents insurance. If you have a mortgage, then having a buildings insurance policy is a requirement, whilst a contents insurance policy is simply advised.
Buildings insurance policies protect the structure of a home against damage from events such as plumbing leaks, fire and damage through break-ins or crime; this includes walls, floors, the roof, windows, doors and ceilings as well as outer structures such as fences and garages. This type of home insurance is a prerequisite to being granted a mortgage.
Buildings insurance should cover the total cost of the rebuild of your home in the event of a total loss; this is to include the cost of demolition and clear up where required. If you wish, it is normally possible to add accidental damage cover to your buildings insurance policy which will provide cover for internal damage to the home which is done by accident.
In the event that your home is deemed uninhabitable whilst repairs are being carried out, or the home being rebuilt, then your insurance policy will cover the cost of you staying in alternative accommodation such as a hotel; please be aware that there is normally a limit to the amount they will pay for.
If you are selling you home, then be aware that it is your responsibility to ensure that it is insured until the contracts are signed and the property is officially handed over to the new owner.
Contents insurance provides cover for the items in your home, both personal belongings and household possessions. This includes electrical items, furniture, clothing, cash up to a given value and some valuables. The policy holder and close family members are all covered by this type of policy; close family members being partners, children, parents and usually cohabiting friends.
Unlike buildings insurance, contents insurance is not a legal requirement or a prerequisite to a mortgage deal, however it is advantageous to have it. It normally covers theft and damage to property due to fire, flood and storm damage; be aware that accidental damage is not normally covered on anything other than TV’s and mirrors, though accidental damage cover can be purchased for an increased premium.
The majority of items covered by the policy will be replaced on a ‘new for old’ basis. This means that the insurance company will give you the money to buy, or provide you with, a new version of the item that you have lost regardless of how old it was to begin with e.g. a new television.
These are the basic elements of home insurance; the buildings and contents elements compliment each other to give you total protection against theft and damage. If you are looking for a home insurance policy, then we suggest that you call Falcon Insurance on 0800 221 8274 as they are a leading insurance provider with reputation for excellent customer service.