Home insurance is something that all homeowners need to have. It is split into buildings insurance and contents insurance and, while you can usually buy these policies separately, it often makes better financial sense to buy them as a complete home insurance package.
Buildings insurance covers the property itself, including any permanent fittings, as well as outbuildings. Contents insurance covers things such as your personal possessions – things that can be removed from your house. All home insurance policies are slightly different, so it is always important to look at a range of options when you’re deciding which one to go for.
Read on to find out more about the things you should look for when choosing a home insurance policy.
Cover what you need
As you might expect, the main purpose of your home insurance policy is to cover your property and possessions. This means it’s vital that the policy you choose covers everything you need it to. Look at different policies to see what they count as ‘standard’ and what they count as ‘voluntary’ options that you can add on if you want to.
For instance, in terms of buildings insurance, while you might find that accidental damage cover is given as standard in some policies, in others this will be classed as an extra so you’d need to specify if you wanted it.
You also need to make sure that you take out the right level of home insurance. This means that your buildings insurance needs to cover the cost of rebuilding your house from scratch (this is different to the market value, so it’s important you get an accurate quote), while your contents insurance needs to cover the total cost of all of your possessions.
The claims procedure
Something else to think about when choosing which company you want to use for your home insurance is their claims procedure. If you needed to make a claim on your policy, how exactly would it work? Looking into the reputation of the company you are considering will help you; asking around family and friends who have claimed on their insurance could also be useful when working out which companies offer the best claims procedures.
Value for money
You also need to consider value for money. This doesn’t just mean getting the cheapest home insurance you possibly can as, even though some policies might seem cheap, it doesn’t mean they offer good cover. The most important thing is that you get the cover you need so you won’t have to worry if you do have an emergency.
One thing to consider is the deductible, which is also called the excess. This is the amount you’d be expected to pay in the event of making a claim. For example, if you needed to make a claim of $2000 on your insurance and your deductible was $300, you’d pay the first $300 of the claim and the insurer would pay the rest. Sometimes, increasing your deductible can reduce your insurance costs, so this could be something else worth looking at when choosing your policy.
Guest Post by James