Homeowners Insurance and why it is essential to have it. Life can be pretty unpredictable, so ensuring your home is one of the most important things you need to do after purchasing a new property in the U.K.
In this article, we will be breaking down home insurance and what it means.
What is Home Insurance?
Home Insurance is a type of insurance that protects both your property and its belongings depending on the type of insurance you decide to buy.
Why Should I Insure My Home?
Here’s why it’s necessary:
Depending on which type of home insurance policy you buy, you could be covered.
Ensuring your home will give you peace of mind and something to fall back on if anything ever happens to your home. The financial security that comes with knowing you are insured.
What Should You Do Before Getting Home Insurance?
Do Your Research
It is essential to do your research. Find out about different insurance companies and what deals they can offer you. This gives an avenue for comparison, and you will pick the best deal for you.
Determine the Amount of Home Insurance You Need
Don’t over-insure and don’t under-insure your property.
Some of the things to consider include:
- The Amount Your Building Costs & Cost Of any Reconstruction
Estimate how much reconstruction of your home will cost if damaged. This covers only the physical house.
- The Internal Constituents Of Your Home
You need to figure out exactly how much home content insurance you need here.
The easiest way to do this is by doing an inventory and writing down all in your building, room by room. Ensure the value of your possessions aren’t underestimated because it could affect you when you need to make a claim.
- Other Valuable Items
Ensure the home insurance you want to get is sufficient to cover all your valuables like gold, jewellery, sports equipment, musical instruments etc.
Types of Home Insurance Options
- Building Insurance
This type of home instance covers the structure of your home, including bricks and mortar.
It covers any damage to the structure like the walls, roof or floors. Although policies are different, this type of insurance can be claimed if your home is damaged by fire, natural events, vandalism, water damage etc.
This policy covers the cost of rebuilding your property should anything happen.
- Content Insurance
This type can be put together with a building insurance policy or done separately.
It covers the personal belongings in your home against theft, vandalism, fires or natural disasters.
- Income Protection Insurance
Income protection insurance protects you in times of sickness or when you’re unable to work.
The premiums paid are on the high side but can be beneficial in a household with just one source of income.
It helps pay your bills in hard times by giving you a certain percentage of your income.
- Mortgage Payment Protection Insurance
This type also protects you during sickness, injury or inability to work.
It doesn’t give you a percentage of your income but instead helps pay off your property mortgage.
Whatever type of insurance you decide to get, ensure that you thoroughly read and understand the policy, terms, and conditions.
If you have a question regarding homeowners insurance, don’t delay contacting Matthew James Property Services today!