HOME AND CONTENTS INSURANCE
Home insurance is quite a serious cost when it comes
down to it. It tends to be in the hundreds in terms of amounts. But
these amounts vary, depending on the rebuilding costs of your home
and it's location, and the possessions that you keep. It also
depends on how well you search the market and work hard to find the
best available quote for you.
There are two types of home insurance. They are home
buildings insurance and home contents insurance (tenants insurance
is a subset of contents insurance)
The first to talk about is buildings insurance, which
is compulsory for you if you are taking out a mortgage. The lenders
require you to take out buildings insurance so that they can protect
their investment. Should your property burn down or suffer from
flooding or subsistence, you may not be able to live in it anymore,
and may need to rebuild it. The lender will not lend you more money
to do so which means that you need to be insured to cover the event
happening. Buildings insurance covers you for the rebuilding cost of
your home not the market value of the home. This is because the most
you would actually have to spend is the money to rebuild the
property.
Contents insurance covers you for all the bits in
your home that you wouldn't remove if you were moving home. So the
structure obviously doesn't count, and the fixtures and fittings in
the home do not count either. But what is covered are things like
clothes, electrical equipment, Hi-fi, TV etc as well as CDs and even
frozen food. To help yourself, you should make sure that you have a
folder with the receipts for the property that you want covered.
Then, should the contents be stolen, or be in a fire or destroyed in
a flood or in a genuine accident, then you can be covered for them.
Be aware also that sometimes contents insurance will cover some of
your possessions out of the home, and your travel insurance might do
that do, so make sure you are not double insured.
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