Protection from unforeseen events and potential disasters
Home insurance is essential when you move into a new property. It provides a crucial safety net that protects your most significant investment from unforeseen events and potential disasters. The importance of home insurance cannot be overstated, as it forms the foundation of a secure and stable living environment.
Buildings cover
When you buy a new home, you must have insurance to cover the property’s structure. This is for more than just peace of mind, as most lenders use whether you have insurance to decide whether to offer you a mortgage.
If you’ve rented for a long time, this type of insurance will probably be new to you. Building insurance generally includes coverage against fires, storm and flood damage, burst pipes, fallen trees, and subsidence. But remember, all insurance providers are different, so check the small print before choosing a policy.
Consider add-ons and exclusions
Most insurance providers will offer add-ons for your buildings cover, including accidental damage and legal expenses. You’ll also need to know what’s not covered, including general wear and tear and any damage that occurs when the house is unoccupied for 30 consecutive days or longer.
The amount of cover and the excess will depend on your policy. You should have enough cover to rebuild your home if it’s completely damaged, which can be tricky to calculate.
Contents insurance
Contents insurance covers your home’s possessions. If your house is burgled or its contents are damaged by fire, for example, your insurance policy should cover the cost, depending on the specific terms.
Before taking out your contents insurance policy for your new home, list the items in your house. This should include electrical devices, jewellery, carpets, clothes, items in your garden shed, and an estimated cost per item.
Understand ‘single item’ limits
In most cases, contents insurance has a ‘single item’ limit, so consider this when choosing a provider. When you select a policy, you can opt for ‘new for old’, where your insurer pays out the value of a new item if your existing one is damaged.
Alternatively, indemnity policies, which are forms of insurance that can be used to “fix” legal issues during the sale of a property, are generally cheaper. However, they consider depreciation and wear and tear when valuing your items, so you’ll only get the current market value.
Additional cover options
Additional cover is usually available for accidental damage and personal possessions, such as your smartphone, when you’re out and about. Take extra security steps to protect and secure your new home. Installing security lights, a visible burglar alarm and CCTV cameras can reduce your premiums and the chance of burglary.
Consider joint buildings and contents cover, which is often a cost-effective option. It covers structural damage and stolen or damaged valuables and possessions.
Weighing voluntary excess
Compulsory excess is a pre-decided amount you’ll need to pay if you make a house insurance claim. Your insurance provider decides the mandatory excess amount, which will only be used if you make a claim. It’s worth noting that compulsory excesses may vary under a single policy.
Alternatively, voluntary excess works similarly to compulsory excess, but you choose the amount you pay. You’ll get to decide how much you wish to pay, which can be as little as zero. You may find that the more voluntary excess you pay, the cheaper the overall premium cost.
However, you must pay voluntary and compulsory excess when making a claim. If you increase your voluntary excess, weigh the pros and cons first. You choose voluntary excess in addition to compulsory excess, which can be set as low as zero. This reduces how much you will have to pay when making a claim.
Time to find good-value home insurance?
To get the right home insurance policy, speak to our team. We’ll assess your requirements and discuss your options. For further information or personalised advice, please contact us today. Let us help you find the best home insurance solution tailored to your needs. Contact our protection experts today!
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please also note: these plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
