What is home insurance?
Home insurance protects the building itself, and the contents contained in it, like furniture and decorations. Some policies cover more than others, and costs vary for the different packages, so be sure to know what it is you want, and to shop around. The following guide can help.
Who needs it?
Building insurance is only for homeowners or landlords. If you are renting your home, then you don’t need it – you need contents insurance. This covers the contents and interior of your home. Many landlords require renters to have it, to cover any damage caused that it not covered by building insurance.
What you need to compare Home insurance quotes
In order to compare quotes, you’ll need to know the approximate rebuild value of the property (for building insurance), details on the type of locks on doors and windows,, the approximate age of the property, the approximate value of the contents, and a list of any individual items that are worth more than £500. You should also have details of your current home insurance deal, your no claims bonus, and any claims you’ve made in the past.
Ways to reduce home and contents insurance
First of all, compare deals. Know what you want for coverage, and use a site like www.ComparetoSave.co.uk to find the best deals on offer. There are other ways to keep costs down too.
- Try not to make a claim. This may seem odd – after all, isn’t that what the insurance is for? – but if you don’t use it unless absolutely necessary, then your premiums will stay low and it will be there when there is no alternative.
- Make sure your home is safe and secure. Consider a burglar alarm, make sure your locks are good-quality and that all windows can lock and are in good repair. Test your fire and smoke alarms to make sure a fire is detected as quickly as possible, both to increase your safety, and to minimise damage caused to your home.
- Increase your excess payment. The higher it is, the less likely you are to make a claim, and the less the insurance company will have to pay out. Both of these factors will help you get a lower rate.
- Make sure the house is occupied. If it is vacant – even if you are away on vacation or business – for more than 28 days, extra fees may apply.
- Don’t auto renew your insurance. When you receive notice that your policy needs to be renewed, it will remind you that it is time to shop around and make sure you are getting the best deal.
- Don’t make monthly payments on your insurance. This is really a high-interest loan. Instead, pay for the insurance using a low-interest or 0% credit card, and pay it off that way. You will save in the long run.
Home Insurance FAQ
Do homeowners need buildings insurance?
Unless you own the home outright, with no mortgage owing, then yes, all homeowners need buildings insurance.
Can I over insure my house?
Yes, but it’s not a good idea. You’ll be able to recover the cost of rebuilding your home, but not more than that. There is no point in paying more to cover more value than you’ll need.
How much should I insure contents for?
Don’t underinsure your contents. Add up everything, even smaller items like clothes, cutlery, and decorations. Contents insurance replaces your old items with new ones, so consider the replacement value, not th resale value.
Do I need good door locks?
Yes. Good locks will save you money. The more secure your property is, the less chance you will be burgled, and the less chance you’ll make a claim. This results in lower costs.