Posted on October 9, 2014 at 12:24 pm by BeeMyMinder
What home insurance do I need?
Whether you are a homeowner, landlord or tenant, it is worth knowing what sort of home insurance you need. You never know when it may come in handy.
The term home insurance covers two different areas – buildings insurance and contents insurance. Tenants would normally just look at the latter, landlords the previous and a homeowner, both types.
So, what’s the difference between buildings insurance and contents insurance?
Buildings insurance – Buildings insurance is what protects the actual property. This includes the floor, walls, roof, doors and windows. You can also choose to include garages, fences and other out buildings. When you get a mortgage, buildings insurance is compulsory.
Buildings insurance covers your property for the following damages:
- Fire
- Floods
- Falling trees
- Vandalism
- Vehicles crashing
Contents insurance – This is what covers all of your belongings and possessions. Contents insurance is not usually compulsory, but some landlords or estate agents may require tenants to have it.
Contents insurance covers your possessions for:
- Theft
- Fire
- Flood
- Vandalism
- Loss (sometimes)
When you have worked out which type of cover you need, (and you may need both) here are some of the things to consider when choosing a provider and policy.
Consider a joint policy
Home insurance providers normally have a joint policy that covers buildings and contents insurance. This is preferable for those that need both, as it’s cheaper and easier.
Where do you need contents cover?
If you have a laptop and expensive smart phone that you often take away from the home, you want to make sure that your contents insurance covers you for this. Some providers will only cover the items when they are at home, so check the small print!
New for old?
Usually, contents insurance providers will offer a new for old policy. This means that if your possessions need replacing, they will replace them with the same item, rather than pay out a second hand value.
Alternative Accommodation
What would happen if your home got flooded and became uninhabitable? Ensure your home insurance covers alternative accommodation so you have somewhere to stay if this unfortunate happening occurs.
Seems like a lot to think about right? Just remember that having home insurance is very important, so ensure you spend time checking providers and policies to get the best cover for you.
High-value items
Some items exceed limits on standard individual cover (£1,500) like an engagement ring or road cycle so consider adding additional cover. Once specifically listed you have peace of mind for being fully insured if the unthinkable happens with your cherish, expensive to replace belongings.
Quality of your Insurance
If about to choose your policy provider you can use independent sites like www.defaqto.com/star-ratings/home-insurance to check the star-rating of the policy for features and benefits
How BeeMyMinder can help
BeeMyMinder allows you to set reminders and alerts for when your home insurance is due for renewal, keep an eye out for our next blog post that will tell you how to secure the best deal!
