The Different Types of Home Insurance

Published at 12:00, Tuesday, 11 January 2011

Advertising feature. Contrary to what you may think, there is more than one type of home insurance that you should be looking for on the Internet. The cover that you require will depend on your circumstances, and if you do not get the right policy for your requirements, you could find that you will not be adequately insured when you make a claim. So, what are the most common forms of home insurance that are available for you to review on price comparison websites? This article aims to find out.

The most common home insurance quote is broken down into buildings and contents cover. Buildings insurance covers the actual structure of your property; everything from the walls, fences and doors to your drive, windows and the fittings that are in your home permanently. If you are getting home insurance quotes for the first time after securing your mortgage, it’s important to ensure that you arrange a policy as soon as possible. Should your house be damaged in a fire or in a flood, buildings insurance will ensure that the cost of repairing your home is covered.

Once the property itself is sorted, it’s important to think about the valuables you have cherished over the years. Buildings insurance will not cover your possessions in the event of an accident, and this is why you need to acquire contents insurance separately if you are renting a property. Usually, however, home insurance quotes combine both building and contents insurance to give you comprehensive cover. Insurers define your possessions as items that can be removed from the structure of the building, items which aren’t necessarily in the home permanently. This cover will sometimes also extend to any garden houses you may have too; a useful prospect if you have plenty of power tools that are your pride and joy.

Making a valuation of the contents in your home is something that many consumers do badly: underestimating the value of the valuables in each room and hence being underinsured in the event that a claim is required. If you have receipts, models or good researching skills, you should try and find out when you bought large appliances or electronic goods such as TVs, dishwashers and DVD players (as well as the price), so you can give the insurer an accurate prediction of how much your contents are worth. Remember; your clothing, flooring, mirrors and clocks, linen and musical instruments are all items that can be claimed for in the event of an accident.

It is also worth considering a discussion with your insurer if you have high-value items in your home, such as rare antiques or CD collections. If they have a value of over £1,000, it is fair to say that these goods can be difficult to replace with ease. By remaining in communication with your insurer, asking them questions, and by notifying them when you are buying new contents for your home, you will have the right level of insurance for your home; instead of over-insuring and paying more than you need to on your premiums.

When it comes to claims on contents insurance, the context of the claims is usually because of theft, flooding or accidental damage (which is only covered on a limited basis by most insurers). If any possessions within your home were damaged purposefully or maliciously, you will not be able to claim; however, there are very few scenarios of loss and damage that weren't your fault that won’t be sorted by your insurer.

There are ways that you can drive down the cost of home insurance, as taking out a policy can be an expensive process when you are a first-time buyer. One such pricing mechanism that could save you money is excess, and this is where you pay for a fraction of the overall cost of replacing or repairing something that has been damaged in your home. When you are comparing policies, you will find that the excess could be a percentage of the claim’s value, or a set amount that will be payable for every claim you make. Because you would be making a larger financial contribution to your insurance in the event of a claim, insurers are happier to reduce the premium that you pay for a yearly policy, but you should remember that the ability to pay your excess is essential if the damage in your household needs to be repaired urgently.

The type of home insurance you need generally depends on the ownership status of the property. If you are a landlord who is renting out your property to tenants, you will find that home insurance isn’t enough to protect you in the event of damage. Thankfully, many mainstream insurers are now providing landlords’ insurance, and this will protect you financially against the added liability you face. If your tenant defaults on your payments, or a dispute means that you need to go through the legal system, a good landlords’ insurance policy will protect you against all of the expenses you are incurring.

It’s always worthwhile remembering that some insurers throw in some useful extras with their home insurance policies. An example of this can be home emergency cover, which will allow vital repairs on your property because of vermin infestation and due to a defective domestic power supply. Home emergency cover, which is also known as home assistance, will cover everything from the parts and the labour to callout charges and the accommodation that you have had to stay in while you get back on your feet.

As you can see, home insurance isn’t just an essential purchase (like cheap car insurance quotes if you're a motorist and motorbike insurance if you're a biker) if you are a homeowner, but it can have its advantages when the unexpected happens. When a pipe bursts or another miniature disaster happens, we can have a lot to worry about, but by investing your time wisely and looking at insurance policies, you will be able to have peace of mind later.