Home Insurance: What You Need to Know

Whether you’re looking to buy your first home or you’re moving to a different property, home insurance can be a tricky subject to get your head around. To help you understand your options, this blog answers three of the most common questions asked about this type of cover.

What is home insurance?

Home insurance is a policy you can purchase which can cover you should your property experience any structural damage, as well as damage, loss or theft of your belongings. There are three levels of cover available. These are contents only cover, buildings only cover and a combination of the two. In the event of a disaster, such as a burglary, fire, flood or earthquake, you can make a claim through your home insurance to repair any damage or replace anything you may have lost. Having this type of protection in place can give you peace of mind and save you a lot of money should something happen. It may also be a mandatory requirement as part of your mortgage policy.

Where can I buy it?

The good news is, buying home insurance is simple. Most banks and building societies offer their own policies, and you can also purchase cover from specialist providers and certain supermarkets too. If you want to secure yourself a great deal though, you should consider using a broker website. Based on the information you enter about yourself and your property, these sites can generate a list of cheap home insurance quotes, allowing you to review and compare each policy. From there, you are normally able to purchase your cover, saving you a lot of time and effort, and eliminating the need to visit each provider’s website individually.

How much cover do I need?

In regards to building insurance, it’s vital that you ensure your insurance covers how much it would cost to rebuild your home. However, it’s also important to realise that the cost to rebuild your property is not the same as the sale price or it’s current market value - it is usually much lower than this. If you’re struggling to work out your rebuilding costs, most insurance providers offer online calculators that you can use.

When it comes to contents insurance, you will need to make sure you take all your possessions into account From your TV to your favourite pieces of jewellery, your belongings may be more valuable than you may realise. To work out how much you need to insure your stuff for, you should make a list of everything in your house, assessing each room one by one, not forgetting your garden shed and garage too.

Although it might mean paying out some extra money each month, home insurance is essential if you want to make sure you’re suitably covered should disaster strike.

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