Understanding Buildings Insurance

Home owners’ insurance varies depending on the type of residence they are living in. A four bedroom home on an acre of property can obviously cost higher than a two bedroom home on a smaller property. Comparing a flat or apartment in the middle of an expensive city, this might actually cost the same as the four bedroom home (if not more money) to insure. Wherever you live, it is always a smart idea to have a sizable amount of insurance for your property.

Some mortgage companies offer home owners insurance with the mortgage, but you are not always obligated to use them. Shopping around is always a good idea, unless you are tied to a mortgage company to use their insurance company or policy.

When insuring your home, the amount shown on the valuation report for the value of your of property is the amount that needs to be covered. If damage occurs and your home needs to be rebuilt, the insurance money should cover all damages.

Many insurance companies offer policies to add the contents of your home to the premium cost – this is called contents cover. If you have a grand piano worth £10,000, this would be an extra cost to add to your homeowners insurance because it is considered a special item. Jewellery and expensive electronics are also typical extra items not covered unless specified. Some homeowners give an estimated total amount to the insurance company of their contents and ignore these major items.

Accidental Damage and All Risks

Accidental damage and/or All Risks can be added to your home owner’s policy as well. All risks means that any items regularly taken out of the home can be covered. Just remember, though, anything extra added to the policy will raise your premium.

It is very important to understand the difference between these two policies. The buildings policy insurance covers the owner of the home for rebuilding the bricks and mortar. The contents policy only covers the occupier and their contents. Any building structure would not be covered under a contents policy. Be aware of the type of policies you sign up for. Most home owners get both policies since many mortgage companies require this and to be covered in case of loss or damages they could not foresee occurring. It also makes good sense!

When making a claim, make sure your policy covers it and then find out how to claim. Call your insurance company and ask for help, which is part of their job. Depending on the claim, the insurance company may send an adjustor to your home to check the damage. Full coverage allows the home owner to get the damaged or stolen items fully replaced or fixed.

Always shop around for the best buildings insurance and ask questions. If you are not familiar to insurance policies, many people are willing to explain the procedures. Always read the fine print to make sure of the coverage.