Want to know the basics about home insurance without getting bogged down with jargon? Here's a quick guide.
What types of cover are there?
Broadly, there are two types of home insurance cover. These are:
- Buildings insurance - Covers damage to the structure of your home as well as damage to any permanent fixtures and fittings. The level of cover you need depends on the rebuilding cost rather than the home's market value. Typically a buildings insurance policy will cover you against fire damage, flooding, water damage and in some cases malicious damage such as vandalism.
- Contents insurance - Covers all the belongings you keep in a home ranging from clothes, to furniture, to carpets and curtains. A typical policy will cover you against fire and flood damage as well as protecting your items against theft. Most home insurance companies offer additional coverage such as accidental damage cover and protection for items taken outside the home for an additional premium.
How are premiums calculated?
Home insurance premiums are determined by a number of factors such as whether or not you live in a flood risk area, whether you live in a high crime area and the security features you have implemented in your home. Insurers will also examine your personal circumstances such as how long you are away from the home and your claims history.
How can you buy cover?
Buying cover is straightforward thanks to the emergence of comparison websites which allow you to compare dozens of policies with one search. The key however is to look beyond the price and ensure you're getting the level of protection you need.
How can you cut costs?
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