Home Insurance Guide
Home Insurance – Is it for me?
Before we get into the details of home insurance covers, there’s one very important question that must have crossed your mind. Is a home insurance cover the right choice for me? Well, the simple answer to that is that if you’ve got a house, then, yes, home insurance is the way for you!
Hold on, though; we bet you’re still thinking why home insurance is so important. Well, not only does it give you a support system to fall back on in times of distress, but it will also save you from financial hardship if your home does undergo any form of damage. And with the right home insurance company and cover, you’ll thank yourself for making this smart decision.
Home Insurance – The Types
The first step in the insurance process is actually deciding to go for a cover plan. But that’s not your job done. There are more than one home insurance types available, and you will need to choose which one to take based on your budget and requirements.
Here’s what to choose from:
1. Buildings Insurance
Buildings home insurance essentially overs the structure of your house, including:
- Walls, roof, and ceilings
- Fittings and fixtures
- House décor
- Gates, footpaths, and fences that are within the plan of your house
- Pipes
- Cables
- Garages and sheds
- Drains
Of course, this is typically what a basic buildings insurance plan looks like, but your coverage will vary according to the area you live in, the type and date of your house, and your personal requirements.
Some of the most common added buildings insurance amenities include:
- Flood coverage
- Accidental damage cover
- Arrangements for alternative accommodation in case of serious damage
- Damage to swimming pools and driveways
- Glass repairs
- Liability cover for damage to third-party property
Typically, buildings insurance covers damage caused by:
- Fires, storms, earthquakes, explosions, and storms
- Vandalism and theft
- Pipe damage
- Broken trees, satellite dishes, or lampposts
- Vehicle collisions
- Escaped oil
- Water leakage
As for the value of your coverage, your plan will typically cover the cost of rebuilding the entire structure of your house, including demolition, architect charges, and area clearance.
It is compulsory to take out a buildings home insurance in certain cases, such as when you're buying a house on mortgage.
You should take to your insurance representative for a plan of a buildings insurance cover that best suits your home.
2.
Contents Insurance
Contents insurance is also a type of home insurance, but this particular type of insurance cover has to do with household contents. Categorising what is and is not a part of household contents can be tricky, which is why the verdict comes down to what items can be moved when shifting houses, such as:
- Household items (cookers, refrigerators, microwaves, freezers, etc.)
- Furniture and furnishings
- Valuables, including jewellery, art pieces, ornaments, and decoration pieces
- Clothes
- Shoes
- Keys and locks
- Outbuilding contents
- Money
- Television areas
- Satellite dishes
The insured individual has considerable flexibility in determining the nature of their contents insurance policy. Usually, customers have to pick between a replacement cost coverage plan and an actual cash value coverage plan. The former carries a monetary payout equivalent to replacing the damaged item with its nearest replica, while the latter pays cash value of the damaged item – after factoring in depreciation. What type you go for is completely up to you – and your budget – since replacement cost coverage is usually the more expensive option.
Again, contents home insurance covers damage caused by:
· Fires, storms, earthquakes, explosions, and storms
· Vandalism and theft
· Pipe damage
· Broken trees, satellite dishes, or lampposts
· Vehicle collisions
· Escaped oil
· Water leakage
So, better get on making that inventory quick!
If your current place of residence isn’t yours by ownership, then there’s some good news for you – you don’t need to get home insurance, building insurance, that is. This is because the burden of home insurance falls on the landlord as after all, they are the owners of that property, and you are just a temporary tenant. There is one little condition, though: you must be renting the whole house or property to escape having to take out building insurance.
However, this does not mean that you don't require any kind of insurance as a tenant. Taking out contents insurance still falls on you, that is if you want to protect your personal belongings. Generally, if you can’t afford to replace all of your belongings at the same time, we recommend you insure them!
Other types of home insurance covers that renters can take out include:
- Accidental damage cover
- Personal possessions cover
- High value items cover
And there you have it, an expert guide on home insurance! For more guidance, you should contact one of our representatives at Forum Insurance. After all, we’re always happy to serve you!
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