Choosing the right home insurance policy is about much more than just getting a good deal. The housing market is volatile enough to make quotes fluctuate all the time, and local factors could influence the price you pay too.
Here’s how to navigate the home insurance market smoothly, all while securing a policy that meets the needs of your busy household.
- Assess your needs
Firstly, you need to work out which level of cover is most appropriate.
While home insurance is not a legal requirement, most mortgage lenders will insist that you have buildings insurance to avoid damage. However, contents insurance is not usually required by mortgage companies.
Aside from your obligations with lenders, you may choose to get home insurance to mitigate risks for your household. Understanding your needs and circumstances means you can choose the right cover.
If you live in an area with a high crime rate, for example, contents insurance is a useful layer of protection against theft. The risk of storm damage may also make home insurance a sensible decision.
- Compare common policy features
There are two common types of home insurance in the UK:
- Buildings insurance, which covers the repairs or rebuilding of your home in the event of major damage. This could step from natural causes like a fallen tree.
- Contents insurance, which pays for the damage or loss of the items within your home. This could protect your furniture, jewellery, and gadgets against theft, fire or accidents.
Some policies include add-ons to give you extra protection. These may include personal liability cover, alternative accommodation, and contents cover for a few specified items.
Remember, the process of picking a home insurance policy involves prioritising your family and prized possessions. Don’t leave any room for compromise in the quality of the cover you select.
- Know the exclusions
There are certain common exclusions from home insurance policies. Here are a few things that might not be covered:
- Flood insurance: If you know that you’re buying a house in a flood risk area, it’ll be more difficult to find an insurer willing to cover you.
- Subsidence: Known subsidence issues prevent full coverage.
- Natural disasters: Also referred to as ‘acts of God’ in policy wording, these one-off events like tidal waves and earthquakes might not be covered, especially in the UK.
- Acts of war: If another country invaded and damaged your home, you wouldn’t be covered.
- Seek professional advice
Some properties are more difficult to insure than others. These include listed buildings and thatched cottages, which may not be covered by mainstream insurers due to specific risks and age-associated issues.
Remember, no property is impossible to insure. But if you’re living in a home with documented issues that’s deemed high risk in one way or another, you should expect to pay much more.
If you’re finding the process difficult, or if you’d simply like a second opinion before choosing a policy, it’s worth speaking to a professional. They will guide you through the value of the policy compared to that of your home – and ensure that you stay eligible to make a claim.
With some time, research and careful comparison, you can keep your home protected against real threats – and save money in the process.
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