Home insurance policy

How to Choose the Right Home Insurance Policy

How to read a policy
Why you must read the fine print
Making a claim
How to make sure you have enough cover
Don't buy what you don't need!

One of the most important things you need to know about home insurance policies, particularly if you are buying or insuring a home for the first time is that there are two types of insurance: buildings and contents. You can buy each policy separately, or you can bundle them together as a joint policy from one insurance company. If you choose to do the latter, you may find that you can save money. Additionally, if you are in a situation where damage occurs to both the house and your possessions, there is no question of which company will pay for what damage.

Finding a Policy

Choosing the best home insurance policy to fit your needs and your budget may be stressful and time consuming. Some insurance companies offer comprehensive policies that appear to be all you need. However, these policies also come with more exclusions, so comb through the insurance jungle with caution.

Buildings Insurance

Buildings insurance covers the structure of your home including the walls, roof and ceilings in the event of damage such as theft, vandalism, lightning, storms, floods, subsidence, fires and escape of oil or water. If your house becomes uninhabitable as the result of damage, your insurance company should provide alternative accommodations for you and your family. Buildings insurance is required if you have taken a mortgage out on your home, but it is not compulsory in other situations.

Contents Insurance

Contents insurance covers all of the possessions and belongings you would take with you if you moved. Your insurer protects all items such as televisions, household goods, furniture, food and drink, valuables and clothing up to a stated limit. You must organise this insurance by yourself, as no mortgage lender will insist upon it. Loss or damage may be the result of any of the above listed conditions, but are most common following a fire, burglary or vandalism.

Getting the Best Price

Insurance companies look favourably on any methods you take to reduce your risk of damage. For instance, fitting security devices such as window and door locks, anti-theft devices, safes, time-switch lights or joining a Neighbourhood Watch scheme are all ways that you can lower your premium. You may fit your home with fire and smoke alarms or increase your policy’s excess, or the amount you are responsible for following a claim. Additionally, if you are claim-free for a certain number of years, typically five or more, your insurance company may offer you a discount on your premiums.

Finding the Best Policy

It is important to shop around when choosing home insurance. Compare as many prices, policies and companies as you possibly can. Insurance firms use different underwriting criteria when evaluating potential customers and assessing homes, which is why the premiums vary so much. Use an online home insurance comparison website to simplify the process. All you need to do is enter information about yourself and your home, and the website will pull information from a number of insurance companies and present their products to you on a single page.

Click here for a home insurance price comparison!