Insurance Online Guide

It is important to protect what is probably your most valuable not to mention expensive asset. Some investments, like your home, are just not worth taking chances with. Home insurance is essential as the main benefit of having it is the financial security. Without home insurance you could face financial ruin if faced with having to pay for repairs and replacements. Imagine if your house burned down and you didn’t have the insurance. You may not be able to pay for the repairs but will still have to pay the mortgage.  Home insurance is designed to offer customers financial compensation in the event that damages or thefts occur to their homes. A good home insurance policy will save you money should something happen to your home or your belongings.

Homes insurance comes in a number of different forms and the type of policy which is purchased will depend on your specific needs. The exact cost of the insurance will depend on the type of cover that you buy and which insurer you decide on. You should be able to find policies that suit a variety of budgets. No matter where you live, or the size or type of house that you live in you can find a policy that suits you although these aspects may affect how much you will pay for the policy.  The price you pay for the insurance is called a premium and home insurance premiums can usually be paid in monthly instalments or annually. Remember that additional features on the insurance will increase the premiums.

Building insurance is in place to cover any physical damage to the structure of your home. Generally speaking it covers you for damage to your home caused by:

-          Fire/smoke

-          Weather

-          Natural disasters

-          Vandalism

-          Burglary or attempted burglary

-          Man-made disasters e.g. riots

-          Explosions

-          Burst pipes – leaks and flooding

Please note that the amount of buildings insurance you need to take out must cover the cost of replacing the building itself and all permanent fittings and fixtures inside it. Building insurance, besides the actual property, can also include any garages, greenhouses, fences, sheds, driveways, swimming pools, paths and walls. It can also pay for alternative accommodation if your home is badly damaged and you need to stay elsewhere. However, some insurers will not offer coverage for all of these things on standard policies so make sure you check the policy details. Building insurance can be useful for non-home owners, because it can protect you against any financial liability should accidental damage happen to a rented property.

Building insurance can often be taken out with a mortgage to cover the cost of rebuilding and repair to your property should the unexpected happen. When you apply for a mortgage many lenders may ask to see proof of buildings insurance as part of their mortgage offer so if you are a first time buyer about to buy a house or are about to move you may want to think about getting a home insurance quote as soon as possible.

Contents refer to all the things in your home including furniture, clothes, bikes, electrical equipment and all your personal belongings. It is basically everything that isn’t a permanent or fixed fitting. Contents insurance covers all the contents in your home against fire, theft, flood, smoke, theft or attempted theft and other damages. As well as the repair or replacement of your possessions contents insurance can also cover:

-          Accidental damage which is particularly useful if you have pets or young children

-          Replacement locks if your keys are stolen or lost

-          Some insurers can also cover you for contents in your garden and outbuildings

-          Your legal liability, for example if someone has an accident in your home

-          The cost of alternative accommodation and storage if you can’t live in your home because of damage

-          Theft of cash from your home

Standard contents insurance cover often works out to be the cheapest but you must ensure that it really covers the things that matter to you. Think about how much it would cost to replace the things you own and you will find that it can be a lot more than you originally thought. If you are not sure exactly how much you need to insure your contents for then you should choose a policy with a specified limit of contents cover.

You may have particular valuables that you want extra protection for like jewellery, artwork or electrical items. If you have possessions of a particularly high value, you should make sure that they will be properly covered by any policy you are considering. Some insurers will cover certain items at no extra cost while others may increase your premium so make sure you consider this.

Many insurance companies will offer additional cover options on top of standard buildings and contents insurance. Please note that these may affect your premium:

-          Accidental damage  against your belongings which is particularly useful if you have young children

-          Cover for items outside of the home which can protect your property anywhere in the UK and even abroad

-          Home emergency cover which offers assistance for things like broken central heating and damaged drains and roofs

-          No claim bonus which offers discounts on your next premium if you do not make a claim

-          Pest cover which can assist you in the extermination or the control of pests in the event of an emergency

-          Legal protection cover which gives you legal help and assistance

-          Student protection which covers a student’s belongings when away from home

Insurance is all about risk and insurers calculate the amount you pay for your insurance by assessing the likelihood of you making a claim. With this in mind there are a few simple steps you can take by reducing the risk and therefore keeping your premiums down:

-          Improve your home security. Install quality locks on your windows and doors and make sure they are well maintained. Install an alarm system and consider outside lighting and timed lighting for when you are away from home.

-          Join a neighbourhood watch scheme.

-          Reduce the risk of a fire by fitting and regularly testing smoke alarms.  Remember that these can also save your lives so are really important.

-          Invest in insulation. As most burst pipes happen in the winter when the water freezes, insulation and lagging will help protect pipes and tanks.

-          Agreeing to pay a higher excess towards any claim may help but only if you are sure you would be happy paying more if you need to make a claim.

-          No claims discount. A no claims history may give you a discount.

-          Combining contents and building insurance. You can make great savings by taking out contents and building insurance with the same company as many insurers offer discounts.

As home insurance is such a necessity there are many companies vying for your business. You should choose a reliable insurance company that you can be sure will offer you help and support should you need to make a claim. Coverage will differ between home insurers so it is vital to check your policy documents. You need to find a policy that can be tailored to your needs if the basic policy isn’t enough but be realistic, and only take out the amount of cover that you need. This will help you save money by keeping your premiums down. However, cutting back on the amount you take out could mean that should the worst happen and you need to make a claim, you are not covered. This is why the cheapest insurance is not necessarily the best. Therefore, you need to find a happy medium and read through the policy thoroughly to see what is and what isn’t covered.

You can get a home insurance quote from many companies easily online or by phone. Most insurers offer an online application form that is straightforward and can be completed in a matter of minutes. To ensure you choose the best insurance policy at the most affordable price, be sure to compare policies from many different providers. Comparing insurance providers through comparison sites like Which Way To Pay is a great way to find the best deal on the UK market.