House Insurance – How to Get the Best Deal

No sensible person would step into a car without taking out the necessary insurance. So why buy a house without taking out the necessary home insurance? In most cases, a house is the most expensive purchase you will be likely to make during your life time, so insuring is imperative. Even if something seems unlikely, for example, a house fire or an unexpected flood, it is good to know that if anything does happen you will be protected. And with one and three people likely to be burgled at some point, it has never been more important to protect your assets.

There are two main types of house insurance; building insurance and contents insurance. Buildings insurance is for the actual structure of the house, for example the bricks, roof, kitchen and bathroom, and could also include the garage and sheds. Be aware that drive ways, gates and fences may not be included in your policy. Most mortgage lenders will make it a necessity to take out buildings insurance before they will you the money. Also be aware that this type of cover will not pay out the total value of your property, it will merely pay enough money for the actual rebuilding of your house.

Contents insurance covers everything inside the bricks- your possessions. This includes electronic equipment, furniture, clothes and jewellery. Even though contents insurance isn’t compulsory, it is still extremely valuable, as it covers your possessions in cases of theft, fire and if damage if made by a third party. However, not all policies cover your personal possessions in cases of storms or flooding, so be sure to read all the small print before you commit to an insurance provider.

Be sure that when you take out a home insurance policy, that it has ‘new for old’ cover. The cheapest policies will be called indemnity cover, and will only pay out to the value of how much a possession is worth at its present value, not to the sum it was actually bought for. For example, if you bought a television three years ago, its value will have decreased, and you will only be paid out for the price it is worth currently. ‘New for old’ cover will pay out to the value that you actually paid for it.

You can reduce the price of your home insurance policy by doing some pretty straightforward things. For example, take measures to make your home burglar free, by installing an alarm system, outside censor lights, and take part in a neighbourhood watch scheme. It is also important to repair your property as it breaks. If you claim for damage that was caused by your own negligence, you will not be successful in your claim. By not making claims is also a way to reduce your premiums. Don’t try to claim for minor damages, try to fix them yourself, as no claims bonuses could severely lower the cost of your home insurance prices.

When choosing house insurance, make sure you don’t choose the first provider you come across. Shop around for both buildings insurance and contents insurance, as you are likely to come across some good deals. Companies offering house insurance are plentiful, so take advantage of the competitive market.

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