Home insurance in the UK comes in two forms;
- Buildings insurance; and
- Contents insurance.
Buildings Insurance
Buildings insurance is concerned with the structure of your home and any fixtures or fittings, including out-buildings, garages, drives, walls and fences. It safeguards against the repair costs in the event of a fire, storm damage and floods etc.
Lenders also insist on buildings insurance being in place as part of your mortgage deal, while it is convenient to do this through your mortgage lender, it will invariably cost more. So, shop around to get a better deal, it will save you money in the long run.
Contents Insurance
Contents insurance covers your possessions in the home against damage or theft. Possessions include furniture, carpets, curtains, television, kitchen equipment, ornaments, personal possessions, clothing, computers, etc. It is the total value of everything that is in your home that you would take with you if you were to move.
It is usual to take out buildings and contents insurance with the same company, but this is not compulsory. Usually, it is cheaper and less hassle if you do this, rather than using two different companies.
Things to consider when buying home insurance:
- Valuations
- Excess
- Occupancy
- New for old
- Valuables
- Home office
- Personal possessions
- Freezer
- Burst pipes
Another option to consider is to include accidental damage with your buildings insurance. This will provide cover against accidents on the structure of your property, for instance.
Get quotes from different providers so you can compare between cost and the cover you will be getting. By doing this you may be able to get a more affordable deal online as there are a number of insurance comparison sites who now offer this service.
Don’t get caught out, make sure you have adequate cover for your needs and requirements.