Jul
12

Choosing the right house insurance

As there are many different companies offering a variety of house insurance policies, it is important that you shop around in order to find a policy that is right for you. The three main types of home insurance are buildings insurance, contents insurance and building and contents insurance combined. Thinking about which type of insurance is best for you will allow you to choose the right policy.

Before you choose any type of house insurance, be sure to read each policy condition carefully. It is important to know exactly what will be covered by your home insurance. Theft, flood damage, fire damage, storms, water leaks or any other type of damage are usually covered, but some companies offer different policies to others, so check that the type of policy matches your needs. For example, if you live in an area where your home is more likely to be burgled or damaged by severe weather conditions, then it is vital that you choose a policy that will cover these risks.

It is very important that you read the small print before choosing a policy. Failing to read the small print may result in you opting for a policy that may not cover you for everything you need. It may also be worth opting for a policy that covers legal costs. There are a wide variety of websites that will allow you to compare home insurance quotes and view the best policies available.

If you have more than one home, then you may wish to choose a policy that will cover all of your properties. Some people have homes that may be left unused for long periods of time, resulting in the insurance policy running out, so it may be worth choosing a policy that will cover any extra homes that you have, particularly holiday homes.

Jul
09

How to make a house insurance claim

When making a claim on your house building insurance or house contents insurance, there are a few basic steps you can take to make the process as simple as possible:

1.    Check whether your claim is covered. If still in doubt after reading your policy documents, contact your insurance company for clarification.

2.    Get a claim form from your insurer. This should be done as soon as the loss, theft, or damage to your home or possession(s) occurs. Complete the form as soon as possible and return it to your insurance company, with an estimate for any cost of repairs or replacements. If you cannot get estimates quickly, return the form and send the estimates when you get them.

3.    Keep all of the damaged items. There is a good possibility that the insurance company will want to see them. Keep any receipts for emergency repairs; they may become part of your claim.

4.    If your claim is substantial, there is high likelihood that your insurance company will send out a claims adjuster (loss adjuster). This individual will take a look at the claim as a whole and any/all items reported within it. The claims adjuster is not an impartial entity, but is there to represent the insurance company.

5.    In claims of substantial size, you can contact a claims assessor (loss assessor). These individuals work on a commission basis (paid by you) and can represent your interests and deal with the insurance company on your behalf.

Jul
06

Insuring Your First Home

You’ve taken the plunge and purchased your first home.  Perhaps it’s small, but it’s all yours.  But there’s one more thing you need to do:  insure that home.

Nearly 40% of all UK homeowners purchase their buildings and/or contents insurance through their mortgage broker.  In many cases, this costs them quite a bit of money.  Unless you have money to burn, consider shopping around for a more reasonable price.

The first thing to check is the cover limit.  Few first homes resemble a stately mansion—they’re typically smaller and not quite so fancy.  Why have huge amounts of cover, then?  You should know the value of your property from not only the purchase price but the appraised value, and can base your cover on that.  You don’t want to buy too little, just in case you suffer a loss.  But buying too much is a waste of quite a bit of your money.

Get quotes on contents insurance both as a package with your buildings insurance and as a “stand alone” policy.  Sometimes a package deal is cheaper, sometimes it’s not.  Again, buy a policy of the size you need now.  You may not have much to cover as you first move in, so there’s no sense in paying for cover you don’t need.  Just remember to check your cover once a year or so and raise the limit as you acquire more “stuff”.

Make sure all people listed on the mortgage are listed on the policy.  Your mortgage provider should help ensure this, but it’s very important that no one on the mortgage is left “naked”, or without cover in the event of a loss.  That can lead to financial ruin.

With a little forethought and some planning you can find a policy that fits your needs and your pocketbook, and can also grow as your family and possessions grow.

Jul
03

Home insurance: exclusions and excesses

There are two types of home insurance; buildings insurance which covers the primary structure of your home (and optionally any other structures on your property) and contents insurance which covers your possessions. Policies for buildings insurance and content insurance can be taken separately or as a combined policy. However, with each type of insurance, exclusions and excesses apply.

Home insurance – buildings

Amongst the most common exclusions for home buildings insurance are:

•    Storm damage to gates and fences
•    Frost damage
•    Structural damage caused by sonic bangs from aircraft

Because exclusions can also be location-oriented, it is important to find out exactly what exclusions apply before committing; otherwise, you may be in for a nasty surprise when you need it the least.

Home buildings insurance also doesn’t cover normal wear and tear and this can affect the amount your insurance company is willing to pay in the event of a claim. In addition, your insurance company may also apply restrictions if you haven’t lived in your home for more than 30 days.

Excess is the amount you are required to meet before your home buildings insurance kicks in. The amount of excess depends upon what type of policy you’ve taken out and which part of the policy you’re claiming on.

Home insurance – contents

Home contents insurance is insurance that covers your possessions; things like furniture, electronics, carpets and curtains, etc. from certain types of damage. Generally, the excess is set by you and affects the amount of monthly premium you’ll pay.

Jul
01

Why is house insurance necessary?

There are few things in life we consider more valuable than having our own personal space – and more often than not, that comes in the form of a home. Home is the place where we live, we love, we grow old – it is the place we make for our families. And our house is probably the biggest financial investment we’ll ever make.  So, it’s important to protect it. Because our homes feel so safe and secure, it’s easy to slip into the line of thinking that bad things won’t happen to us; that they only happen to other people that we read about or see on television. But the facts tell us differently. According to statistics, one and three of every home owner will get burgled at some point in their lives; and then there are floods, storms, fire, and other natural events that threaten our home and their contents. If we do fall victim to any of these things, not having house insurance could be catastrophic – it could ruin our financial lives. Nowadays, home insurance offers someone for everyone – home/flat owner, landlord, and tenant – and household insurance quotes can be obtained easily by anyone with a telephone or a computer. Plus, there are some really good cheap house insurance deals out there if you’re willing to look. Doing without buildings and contents insurance is simply not a risk a house owner should ever take. Yet, one quarter of all British house owners do just that – and for no good reason. Why?

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