Home insurance- Mini Guide

Home insurance mini-guide:

Your home contains all the most treasured inexpensive and expensive items you possess. If you own it, it is also the likely to be your largest financial commitment.

It makes sense to consider the risks you face and act to protect it from the unknown; especially when money is tight, rebuilding your house or having to replace all your possessions isn’t cheap!

Feel free to give our customer services line a call for help; 0845 355 1150

Or

Go online at www.insurance4everyone.co.uk to get a quote!

We stock our preferred home insurance product online, but we can also provide you with a number of alternative insurers to compare if you drop us a line! 

There are effectively two types of cover for you, but these can also be combined into one policy which can save you money and you can add extensions such as accidental damage or All Risks:

Buildings insurance guide

Contents insurance guide

What is meant by Buildings?

It is usually:  The home, patios, drives, footpaths, walls, fences, gates, hedges, fixed tanks providing fuel, ornamental ponds/fountains together with fixtures, fittings and decorations (what a mouthful).

All of the above will be at the address shown in the schedule.

What is meant by contents?

It is usually:  Household items and personal belongings that you own or are legally responsible for.

How much should you insure for?

Be aware that it’s your responsibility to make sure the amount you insure represents the full value of your property. Although this can take a little time, it’s important you get on top of it!

This is just a guide – if you buy a home insurance policy your exact coverage could be slightly different, so please take care to check it thoroughly.

Buildings insurance guide

Predominantly a product for homeowners it is often a condition of having a mortgage. You don’t have to have your buildings insurance with your mortgage provider, you can shop around!

If you are leaseholder and live in a flat complex, the owner of the freehold may have arranged a block policy (to which your service charge contributes) so it is prudent to check whether this applies to you before you seek cover.

What do you need to consider?

Buildings insurance covers the building and generally permanent fittings that you would leave behind were you to move house.  It is usually extended to include outside structures on your property such as garages and outbuildings and garden fixtures such as walls and fences as well, but this varies dependent on insurers.

The policy will pay for occasions where the property has been damaged by catastrophe or was destroyed. Standard cover pays out for ‘perils’ such as Fire, floods, lightning or subsidence and usually extends to include property owners liability.

Flood is a particular risk in modern times, you can find out more information about the risks you face and warnings you can receive on the environment agency website

Sums insured for Buildings cover are usually calculated based on the rebuild value of your home; there are some online tools you can use to ensure you get the right level of cover. Other rating factors include the number of bedrooms and postcode you live in, depending on the insurers criteria. 

At insurance4everyone, we have a policy where you do not need to know the rebuild amount – this is called a bedroom rated policy and provides cover up to £400,000 for buildings.

Buildings insurance tips:

• -   Always read the product wording before you make a buying decision – ask your supplier for a copy of a Summary of Cover, this will tell you the most important information in a short format, including any significant limitations or exclusions to coverage.
  
• -   You are free to buy buildings insurance from whomever you wish so long as they are authorised by the Financial Services Authority – you can check to see if your firm is authorised.
  
• -   Buildings insurance covers you for “catastrophic”  scenarios and standard risks
  
• -   You may save money by purchasing both buildings and contents insurance combined
  
• -   Increasing your excess (the amount you contribute to a future claim) can reduce your initial premium, but will increase your costs should you claim; don’t opt for an excess you could not afford to pay
  
• -   Do not buy on price alone, always read the conditions of cover you are agreeing to
  
• -   Check the financial security of the company insuring you; insurers that have better financial strength can have more expensive products.
  
• -   If you are a leaseholder in a complex with more than home, check to see if you are already contributing to a block policy.
  
• -   Accidental Damage - you can see usually extends your standard perils to include accidental damage to the building (example putting your foot through the ceiling when you are tidying the loft!).  An extra premium usually applies.
  

 

Contents insurance guide

This is a product for both homeowners and those that rent a property.

What do you need to consider?

Contents insurance covers your possessions that you would take with you were you to move house, such as furniture, electrical goods, clothes and valuables.

Insurers will usually cover you for the ‘perils’ of fire and theft as standard; you may also opt to cover accidental damage in and perhaps even away from the home.

When applying for a contents insurance quotation you are asked to nominate the level of cover you require, some insurers set an automatic maximum as standard.

It is important that you take some time to calculate the value of contents in each room of your house (don’t forget your carpet or curtains!) as this total sum will indicate how much cover you need. Your calculation should be on the basis of ‘new for old’ except for clothing.

It is sensible to keep the receipts for any items you buy that you might want to claim for in the event of any claim and keep the record upstairs in a safe place such as a fire proof box/cabinet.  These not only help you tot up the value of your contents, but also act as irrefutable proof of ownership in the event of a claim.

Should you make a claim; most insurers operate a “new for old” policy, meaning items would be replaced new except for clothing.

With this product, the security of your home has a lot of impact on your premium. You could save money if you have a burglar alarm, multiple deadlocks, additional window locks or are a member of the local neighbourhood watch.  Sometimes if the sum insured is higher than average the insurer will insist on an alarm.

Contents insurance tips:

• -    Always read the product wording before you make a buying decision – ask your supplier for a copy of a Summary of Cover, this will tell you the most important information in a short format, including any significant limitations or exclusions to coverage.
  
• -    Contents insurance is voluntary rather than compulsory
  
• -   Tot up, room by room, the value of all your removable possessions (including white goods and upholstery) to ensure you get the right level of cover.
  
• -   Consider whether you need accidental damage or cover away from the home.
  
• -   You may save money by purchasing both buildings and contents insurance combined.
  
• -    Increasing your excess (the amount you contribute to a future claim) can reduce your initial premium but will increase your costs should you claim; don’t opt for an excess you could not afford to pay.
  
• -   Get organised; try to keep receipts and a log of the key items you have purchased.
  
• -   Check the financial security of the company insuring you; insurers that have better financial strength can have more expensive products.
  
• -   Cover for contents (possessions/plants) in the garden, garage or outbuildings varies from insurer to insurer.
  

Add- on cover & extras;

All Risks:

You can extend a standard contents insurance policy and provide accidental damage or loss cover for valuables or personal possessions anywhere in the UK and sometimes worldwide.  This additional cover attracts an extra premium, again check your policy for wording.

If you have items worth more than £1,000, always make sure you tell your insurers and keep the receipt as proof of purchase and value. It is also a good idea to take and keep safe photos of the item as this will help the claim process if you need to claim. Make sure you also have a photo of you wearing any valuable ring, watch, etc, as this again helps prove that you had the item!

Pedal Cycles – in Contents insurance

Loss of or damage up to the sum insured.  Cover varies depending on the insurer – check your policy.

Credit Cards/Cash

Personal money, credit, debit and cheque guarantee cards all held for social or domestic purposes are sometimes insured for loss as a result of misuse by any unauthorised person (or people) following the theft or loss of the card.

There is usually a maximum sum insured and you must report a loss immediately to the police.  Each policy is different – check yours. Cash is usually covered up to £500 in the home but you need to check your policy for cover and wordings.

Contents of Freezer

Included in the Contents insurance product; Loss of or damage to food stored in any domestic freezer in the home caused by a rise or fall in the temperature (say electricity failure) but each policy has a different wording and sum insured.  Check yours.

Public Liability

Your legal liability as owner of buildings is included in that section.  Occupiers, personal and employers liability is your legal liability to pay damages and often claimant’s costs for accidental bodily injury or illness or accidental loss of or damage to property but each policy may have a different wording and sum insured.

ID Theft

Some policies provide cover for ID theft – check your policy wording. We can also provide a stand alone ID Theft product for only £21.

Legal Expenses

Some policies include family legal protection (or legal expenses) up to maximum limits and for pre-determined legal matters or proceedings.  Check your policy wording.

Index Linking

The sum insured you have chosen is usually index-linked and will be updated at each renewal date.

Exclusions

All policies have exclusions; these are when a claim will not be met.  Check your policy carefully to manage your expectations.  They will usually be highlighted in a Policy Summary (sometimes called a “Keyfacts document”) make sure you get one and read it carefully.

Can you add other cover?

Some insurers allow you to add caravans, sports equipment, personal accident, redundancy or boats to your policy.  It is worth shopping around as sometimes the cost is more than you might pay for a separate policy.