Home insurance policies can vary in price depending on exactly what you are being covered for. You may be offered additional cover for various things too that will add to the price. Some of these you will deem necessary and others you can live without. Here is a breakdown of what the various types of home insurance actually cover you for.
Please note this is a collaboration post.
Home Insurance Explained – Buildings and Contents Insurance
Many companies offer a discount if you buy buildings and contents insurance together, so it is worth
doing a home insurance comparison before you buy.
As a thought exercise, imagine if you could turn your home upside down. Anything covered by
contents insurance would fall out. Anything covered by building insurance would not fall out
because its either part of the structure or ‘fitted’ to the structure in some way. So, for example, your
fitted kitchen would be covered by buildings insurance, but your crockery and kitchen gadgets would
be covered by contents insurance.
Home Insurance Explained – Accidental Damage
This cover will pay out for you if you damage something accidentally, e.g., if you spill red wine on a
cream carpet or nail varnish on your sofa. You are unlikely to damage anything on purpose, so
accidental damage cover can be a wise investment.
Personal Possessions Away from the Home
This covers you for things you are likely to take out with you, e.g., your phone or jewellery up to a
certain value. You may find that you already have mobile phone cover through your phone provider
and this insurance will usually only cover individual items of jewellery up to a certain value as
anything over about £2,500 will need to be listed separately. Read the small print when you make a
comparison to decide if you need this cover or not.
High Value Items
This is where you would list your high value items, such as individual pieces of jewellery items worth
over a certain amount. An online valuation will offer you a good idea about how much your items
may be worth if you are unsure.
Home Emergency Cover
This add on is very useful. You will be given a 24-hour number to call in an emergency and they will
arrange a repair for you. This will save you panicking if you have a burst water pipe or your boiler
breaks down. Some boiler companies do offer boiler breakdown schemes so check the small print to
make sure you are not paying for the same thing twice.
Home Insurance Explained – Legal Expenses
Legal expenses such as a boundary dispute with a neighbour can cost you thousands of pounds in
legal fees. For a small monthly cost, you can be insured for this as part of your home insurance
package.
Always check the small print to see what individual policies include or discount before making a
decision on which type of home insurance is right for you.
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