What you own is more than just stuff. It takes a lifetime to build up a collection of prized possessions so it’s important to ensure, should any of these possessions get lost or damaged, that you have enough financial support to repair or replace them.
Many people take property and home insurance for granted. But, it has become plain to see why it’s necessary to have both.
Home insurance cover comes in two parts – buildings insurance and contents insurance. You can choose either one or both of these based on your needs.
Buildings cover insures your bricks and mortar for events like fire and weather damage, while contents cover could protect your belongings against problems like theft, damage and loss.
If want to find out more about home insurance, read on, as we will be answering frequently asked questions;
What is home insurance?
Home insurance, also referred to as home insurance or property insurance, provides coverage for your private home and compensates you in the event of a loss. If your home is burglarized or is partially or totally destroyed by a cause that is covered by your policy, homeowners insurance will help you replace your belongings, repair your home, or even rebuild.
Is it essential to have home insurance?
If you’re a homeowner, most mortgage lenders insist you have buildings cover in place to protect their investment.
You don’t usually need buildings cover if you’re renting, but you may want contents insurance to help cover the cost of replacing your things if you suffer a loss.
Does home insurance apply to me if I rent?
As the owner, your landlord will be responsible for the maintenance of the building, so it’s down to them to ensure their property is protected with buildings insurance.
But you’re responsible for any contents inside that you own. If anything were to happen to your possessions, you would be liable for the cost of replacing them if you didn’t have contents insurance.
What does home insurance cover?
Homeowners insurance provides coverage for a range of risks that you may face as a homeowner that otherwise can be financially challenging to cover out of pocket. These include:
- Property damage: This includes damage and destruction to your residence and/or detached structures.
- Personal property loss: Includes damage or theft of personal property, up to your set policy limits for covered circumstances, which typically excludes flooding, earthquakes, and personal negligence. If your personal property is very valuable (such as collectibles or antiques) you’ll likely need additional “riders” or special endorsements on your policy.
- Personal liability:If you, your family member, or even your pet causes an accident, injury or property damage, your homeowners insurance can protect you
- Added living costs:If your house is uninhabitable, your homeowners insurance can pay for alternative living arrangements while your home is repaired or rebuilt.
Should I increase my excess to make my policy cheaper?
The golden rule of excess is to make sure you know what you can afford to pay if you have to make a claim.
The more you agree to pay towards a claim, the less cost there would be for your insurer, so they may reduce your premium accordingly.
But beware – setting an unreasonably high voluntary excess may save you a few pounds on your premium in the short term, but if ever you need to make a claim, you could find yourself with a large bill to settle before your insurer will pay out.
Can I own a home without home insurance?
Home insurance is never required by law, however, the financial institution that holds your mortgage will most likely require your home to be insured for at least the amount of your loan. Lenders require home insurance to protect their investment in case of a disaster that destroys or damages your home. While home insurance may not be required by a lender, it is recommended that every home owner insure their home and belongings to protect against a loss. Learn more about how much insurance you need.
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