MoneyMagpie

Apr 19

What type of home insurance do you need?

When you are visiting one of the home insurance comparison sites to get a quote, you might be asked the questions regarding to what type of cover you need. Unless you are a financial expert, you will not be able to determine which policy suits your needs the most, and how to save money. If you want to avoid buying a policy that will not give you the protection you need, check out what you need to consider before signing the dotted line.

What Is Covered?

The first thing you have to check out is what the home insurance covers. Some home insurance policies will only give you the basic protection. If you do have valuables in the house, it is important that you take out the adequate contents cover, as well as the buildings insurance. Further, if you have a garage or shed you would like to protect, you must specify this when you request a quote, or any break-ins will be excluded, and you can’t make a claim.

 

Excess

The price of the policy is the first thing you have to check, but you also need to look at the excess figure. Simply put, this is the amount you need to pay when you make a claim. The rest of the damage or loss will be covered by the insurance company. As an example, if you have a TV that is stolen from your home and it is worth £600 and you have an excess of £300 on your policy, you will only get £300 from the insurance company. The higher the excess is, the lower your price generally is.

 

Liability

Some insurers will offer you extras, such as liability insurance. This generally covers instances, such as your roof tiles falling on your neighbour’s car. You will not have to pay for the damage yourself, and don’t have to risk falling out with next door over an accident. Likewise, if you live in an apartment block and have a pipe burst soaking the property below you, the insurance policy will cover the cost of renovation and furniture replacement.

 

Working from Home

If you work from home,  you must declare this on your policy, or it will be invalid. When you visit price comparison sites, such as littleleopard you will be asked the question. In most cases, using your home as a business might not impact your price, unless you are carrying out industrial work. If you simply work online using a laptop, the price shouldn’t be much higher.

 

Are You a Landlord?

If you are a landlord, you will need to get a specific landlord insurance. If your tenants suffer an accident at your home, you can be held responsible. The insurance will cover your belongings and fixtures, as well as the building, but your tenants will need to find a separate policy to insure their belongings.

Home insurance quotes can be confusing. Familiarise yourself with the terminology and make sure you are only taking out the policy once you know what it covers and when you can make a successful claim.

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