You should never make assumptions when it comes to home insurance.
It’s never worth leaving your prized possessions unprotected, no matter where you live. Whether you’re a first-time buyer or you’ve just upsized into a new area, it’s important to ensure that your home insurance is appropriate for you, your family, and your belongings.
In this guide, we’ve shared five top tips to help you make sure that your home insurance policy meets your requirements.
What does home insurance cover?
Home insurance primarily covers your personal belongings.
Most policies extend to covering the structure of your home and liability protection too. Depending on your provider, home insurance could also cover living expenses if you cannot live in your home due to unexpected circumstances, usually detailed in the policy wording.
It also protects you and your family against the cost implications of certain risks, including vandalism, fire, theft, and sometimes natural disasters. It’s important to remember that cover varies according to each policy, so it’s always worth making sure that you’ve picked the most suitable home insurance.
5 steps to choosing the best home insurance policy
1.) Do your research
There are so many home insurance providers to choose from, so don’t rush into a decision. Evaluate your options carefully and read the small print. If you’re having trouble understanding anything you see, don’t hesitate to call the provider or ask a trusted friend for advice.
Think about any extra cover you might need for your home or family. If you’re an artist, for example, it’s likely that you’ll have more valuable contents in your house.
2.) Work out cover limits
Firstly, it’s time to find out how much your property is worth. Your home insurance policy should provide enough to rebuild your home entirely and replace everything you own.
When you add to that figure the total value of your possessions, including electronic gadgets, furniture, jewellery and other valuables, you’ll have an idea of the total value of your estate. Don’t forget to factor inflation and other financial fluctuations into your ideal cover limit.
3.) Understand exclusions and excess
Every home insurance policy should outline an excess and cover exclusions.
This is the amount of money that you’ll need to pay before your insurance can kick in and cover the rest in the event of a claim. If you choose a higher excess, your premium might be lower – but that means you’d need to pay more if you did make a claim. Reviewing policy exclusions gives you an understanding of anything not covered by the policy too.
4.) Check liability protection
Liability protects you against costly legal fees in the event of a third party claiming against you, your family members or your pets in court.
You should always make sure that your home insurance policy includes sufficient liability cover to protect your assets in the unfortunate event of a lawsuit. You might also consider increasing liability limits to more than the standard cover provided by your policy.
5.) Check before renewing
Lastly, it’s easy to forget that most home insurance policies automatically renew once you’ve reached the end of the initial contractual agreement.
Don’t be fooled into a higher premium for the same cover: make sure you’re getting quotes before you speak to your current provider. If your circumstances have changed, informing your current insurer could save you money on the next policy.
