House Insurance
With so many Insurance Companies and Brokers offering House Insurance, choosing the right House Insurance for your own needs can be somewhat of a daunting task. However, probably the most important factor is to strike the balance between getting the most competitive premium and finding the right level of cover which provides your property with sufficient and adequate cover.
Obtaining the cheapest House Insurance Quote may seem tempting but you should consider the old cliché 'your home is probably the biggest investment you'll make' - With House values at an all time high it is important to ensure that your property is suitably insurance. After all, the difference between the cheapest House Insurance company and an expensive House Insurance company may be as little as £100 per year but the difference in cover may be significant - so to summarise, do not compromise on the cover you get to save just a few pounds.
There are two elements to House Insurance; protection of the Property itself (i.e. the Bricks and Mortar) this is often referred to as Buildings Insurance. The second element of House Insurance is; protection of your possessions (i.e. furniture, fittings, possessions etc..) this is often referred to as Contents Insurance. Most Insurance Companies offer both Buildings Insurance and Contents Insurance as part of their House Insurance policy. Whilst Buildings Insurance is a must, Contents Insurance is optional. If you have some valuable possessions it may be worth while seeking individual polices or companies to provide Buildings Insurance and Contents Insurance.
The things to consider when buying House Insurance:
Ensure your property is adequately insured - Buildings Insurance is often based upon the 'Reinstatement' value of your property. This is the estimated cost of re-building your property should it have to be demolished and rebuilt. This figure is often ascertained by Surveyors when valuing property for mortgage purposes. If you have not had a recent survey/valuation of your property carried then you should seek the advice of a local Chartered Surveyor or ask the House Insurance company for assistance. Some insurance companies offer a flat level amount of cover e,g. £300,000 and rate your property based upon the number of bedrooms. Again, you should shop around and compare cover, not just price.
Ensure that your House Insurance policy protects for the maximum spread of risks including such things as; flooding, subsidence, accidental damage, personal liability insurance, fire, lightening, earthquake, vandalism, collision etc… It is often a good idea when shopping around to draft a simple matrix and note down the different prices that are offered and the insurance risks that are covered by each insurance company. You can then make a fair judgement based not just on the cheapest house insurance quote.
There are still some misconceptions with regard House Insurance, these include that both Buildings and Contents Insurance are compulsory (if you have a Mortgage on your property then only Buildings Insurance will be compulsory) and that if you have a mortgage then the House Insurance needs to be taken out via the Mortgage Lender, both of these scenarios are indeed misconceptions.
If you have a Mortgage on your property then it will be part of the conditions of your mortgage that you have adequate Buildings Insurance cover. Contents Insurance is normally not compulsory however always advisable.
It used to be that Mortgage Lenders forced customers to take out House Insurance through them, this is no longer the case and often those polices (known as 'Block Policies') provided inadequate cover. So if you have your House Insurance through your Mortgage Lender you should shop around and compare how the policy compares with other House Insurance providers.
The basic message is shop around, whilst it might take a little phone or 'click' work the benefits can be substantial both to your pockets and the protection of your property.
Bookmark this page and use it as a reference page to shop all the companies that have links on this page
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