Home Insurance – Important Facts

For most of us, our home is likely to be the most valuable possession we own alongside all our personal possessions which we have worked hard to accumulate. It therefore makes both logical and practical sense to take out adequate protection against our worldly belongings. Should the inevitable happen, the last thing we want is to be left high and dry.

For any property to be fully protected you need to take out two types of insurance: buildings insurance and contents insurance. These two policies can either be taken out separately with two different insurers or bought together. Generally speaking when bought together considerable savings can be made. With a wide number of deals available do check the market first to find which deal works best for you. www.moneyoutlet.co.uk can help you search the online market quickly and efficiently by comparing quotes from hundreds of leading home insurance companies.

Buildings insurance is compulsory if you have an active mortgage and covers any damage to the structure of your property as well as to any permanent fixtures and fittings. Your buildings insurance policy must be sufficient to cover the cost of rebuilding your home should disaster strike. Check the market for other policies and quotes before considering your mortgage lender as competition is high and most mortgage lenders do not offer the best deals.

Contents insurance unlike buildings insurance is not compulsory but is a very wise investment to make as it provides protection against the loss or damage to your personal possessions in the case of a fire, theft or, as is becoming more common, flooding. Many people choose to avoid this investment to their own detriment and suffer the consequences of losing everything. Figures show that the UK has perhaps the highest percentage of burglaries per year.

In addition, many UK households are in fact underinsured when it comes to contents insurance and sadly are only made aware of this when it is too late. The average value of contents in UK homes exceeds some £40,000 so taking out adequate cover is crucial to provide cover against unforeseen accidents and events.

Review your house insurance every couple of years to ensure you have taken into account any changes such as increased value to your home or any additional possessions you may have purchased that are of considerable value. There is nothing that states you must stay loyal to your insurer therefore it is a good idea to compare several quotes from rival companies just before your policy terms expires as a way of checking for the most competitive premium. Failing to review your insurance could mean that you are at risk of being underinsured and as a result your insurer will not pay out in the event of a claim.

What to look out for:

When taking out any contents insurance it is important to read over the terms and conditions so that you know exactly what you are covered for.

Make sure your contents insurance is kept up to date. The British Insurance Broker’s Association states that 70% of UK households are underinsured putting at risk the ability to make a successful claim.
Check for any entitlement against accidental damage, as cover for accidental damage is not always automatically included in buildings and contents insurances policies. With most policies it comes as an optional extra and it can be a good idea to add without dramatically pushing up your premium.
Be aware of your single item limit which is the maximum an insurer will pay out up to, for one single item. This limit varies with each insurer but generally stands at £1,000 - £1,500. Therefore any possession which exceed this value must be individually listed on your policy and this may involve paying a higher premium or taking out a separate insurance policy.
Check the excess level as a cheaper insurance premium may look good but it could involve a huge excess fee in the event of a claim. Make sure any excess amount is affordable.
Having the correct security measures in place can potentially lead to a 5-10% discount on your insurance premium. As a general guideline many home insurers request basic security measures i.e. mortise deadlocks conforming to British Standard 3621, a NACOSS approved burglar alarm and membership to a local neighbourhood watch scheme.
‘Reasonable care’ clauses may also appear in your policy, where insurers expect you keep any valuable out of sight and securely locked up as well as making sure any doors and windows are properly secured when the property is vacant.
Check the amount of days your insurer may cover your contents should you decide to vacate the property for a long period of time.
Inform your insurer if you are living in a flood zone and check for limited home insurance options.
Be sure that you know what is NOT covered by your insurance policy such as garden fences, sheds and tools, credit cards and loose money.

Whether you're looking for building insurance, contents insurance, or both, it is highly recommended to compare the market to find the best deals. Shop online right here at the MoneyOutlet to compare the Top UK Home Insurance deals and save. Simply "click & compare" to save time and money now.

Published on September 20, 2007