Home Insurance-helpful advice
Here we try and explain the differences between the various types of insurance and point out some facts that you need to take into account when choosing which policy to buy:
Buildings Insurance
In a nutshell Buildings Insurance covers the structure of the property as well as the permanent fixtures. This must not be confused with Contents Insurance.
Buildings Insurance will generally cover the cost of rebuilding the property as a result of fire, weather damage such as lightning or storms, disasters as a burst pipe or falling trees, riots or vandalism.
Items that are unlikely to be covered by many insurance companies include Swimming Pools, Tennis courts, boundary walls paths fences gates. You will need to check your policy to see what it does not include.
The other points to look for in your policy are the problem areas of subsidence and flooding.
Subsidence – what is it and what causes it?
Subsidence is the movement of a property at foundation level. There are a few common reasons that cause this movement that generally result in cracks in the walls:
- Changes in weather conditions such as long dry periods
- Trees and large shrubs growing their roots under the building
- Drainage from broken guttering running into the side of the property and disturbing the soil and foundations
All insurance companies offer cover against subsidence. However it as well to check to see if and what any restrictions might be in place. There might be an excess which could typically be £1,000. These should be checked if you are in any doubt.
Flooding
The last few years has seen flooding dominate the news not to mention the devastation it has brought to various towns and villages throughout the UK. We are told that the shift in weather conditions responsible for these is not going away.
You may find buildings insurance difficult if you live in an area often affected by flooding. However, if there are plans to improve flood defences in your area, your existing insurer should continue to offer you insurance.
How much cover do I need?
Buildings insurance is generally less than the market value of your property. This is mainly due to the value of the land the property stands on.
However with property prices moving in some areas downwards you must make sure your property is correctly valued. One good link is the home insurance rebuilding calculator at the ABI
If you add any improvements to your home you should inform your insurance company so that these can be taken into account.
Contents Insurance
Contents insurance generally covers your belongings. It is worth spending some time thinking about just how much items in your home would cost if they were lost due to theft, fire or other such as flooding.
What’s covered - Your cover will be for such things as furniture, bedding, pictures, household goods and clothing .Contents is defined by the insurance companies as the things you would pack if you were moving home.
It should also cover you for more obscure things such as your liability if someone visits your home and has an accident that results in an injury.
Accidental damage of items such as televisions glass etc. is usually covered by most standard policies but often only to a limit. For an additional premium you can increase cover on these items. This is usually about £100.
The main thing to remember is that you should have the cover that is right for you and that if you do have to make a claim it won't give you any surprises. Top of the list is to decide when taking out your insurance if you want to have “new for old” or “as new” which today most policies are. This means that the insurance company will replace the full value or cost of repair to damaged items. Some items such as clothes are not usually covered to full value and it is best to check your policy.
Alternatively you might want to look at a cheaper policy that pays out at the value when the claim is made. This is indemnity insurance and is not based on replacement cost.
Remember to make a complete list of everything including the loft garage and shed. Pictures of each room will help and are a good thing to have as a record of your belongings.
Things to remember-Common exclusions
Contents policies will not cover a property for damage from for example a leak theft mildew if the property has not been occupied for a certain amount of time, usually 30 days consecutively.
Loss due to theft if the property has been sub-let except if there are definite signs of forced entry
Replacement of all of a set of something if only one item out of a set is damaged or stolen. It is likely that that item only will be replaced.
