With the economy in turmoil, it’s wise to protect your belongings in any way you can. This might mean taking out home insurance with a well-known company – so let’s find out more.
What is home insurance?
Home insurance – also known as hazard insurance or homeowner’s insurance (HOI) – is a type of property insurance. It covers private homes and can safeguard your investment from a wide range of problems and incidents including damage, theft and loss of contents. There are many different policies available, but at least one of the people named on the contract has to live at the property.
What does building insurance cover?
Buildings insurance can protect your abode from factors that are completely out of your control such as fires, floods, burst pipes or third-party vandalism. It will put your mind at ease if an emergency occurs and will give you the financial support you really need. Your home should be insured for the amount of money it would cost to build your home if it were totally destroyed including an allowance for architects, surveyor fees, legal fees and demolition costs.
What is contents cover?
Unlike buildings insurance, contents cover protects all items inside the house that are not fixed to the property including furniture, jewellery, appliances and clothing. Many contents insurance policies will even cover the products in your fridge or freezer – so make sure you read the small print. The cheapest type is indemnity insurance and will replace exactly what was there before. So if you had a cooker that was three years old, your replacement will also be three years old. If you opt for a new for old policy, however, you’ll receive brand new goods if they’re lost, stolen or damaged.
What is landlord insurance?
Are you a landlord? Do you want to take the hassle out of rental property incidents? If so, landlord insurance could help. It will protect your property from a wide range of emergencies and will ensure you get the most out of your investment. Many policies will also help you meet your legal gas safety obligations and will make it easy for you to call for help if your need it.
What is the premium?
If you take out home insurance, you’ll be asked to sign a contract and pay a premium. This is the payment the insured makes to the insurer and is usually a set amount. The insured must pay the relevant amount of money each term and should abide by the conditions of the contract. If your house is less likely to be damaged or destroyed, you might be able to pay a lower premium, so it’s worth safeguarding your abode by investing in sprinklers and installing Government approved fire alarms.
Insurance might seem like a complicated territory, but it’s not as difficult to understand as you might think.