Why you need house insurance
House insurance is among the most important insurances you can
get - and in the case of buildings insurance, most mortgage
lenders make it compulsory. This is because your home is your
biggest asset and if you lose it because of fire, flood or
another disaster and you have a mortgage outstanding on it,
there may be nothing tangible to repay back your mortgage with.
There are two types of household insurance - buildings and
contents. These can also be purchased as individual plans or
combined. If you buy the insurance combined (ie from one
insurer) they you tend to get an overall discount.
Buildings insurance gives your property (and it's fixtures and
fittings which are permanent fixtures such as fitted kitchen or
built in wardrobes) financial protection in the event of damage.
Unless your mortgage provider insists you have cover, this
insurance is still strongly recommended as it protects probably
your most major asset.
Contents insurance - while not compulsory - is just as important
as buildings cover. Again, it offers protection against fire,
damage, loss etc. and will cover most of your possessions in the
home from baby clothes to DVDs to audio equipment to valuables
(up to a set limit which your insurer will define).
If you have something particularly valuable (such as an
expensive watch) - or something you take outside the home and
that is more liable to damage or theft (eg a bicycle or a
laptop) contact your insurer to see if you need to upgrade your
policy. This should only mean a small increase in your house
insurance premium and will give you the peace of mind that the
item is covered.
As with all insurance products, when looking for house
insurance, do shop around for the most competitive premium.
Online insurance brokers, where you enter your details and
requirements just once and the search engines goes off and finds
the best deals for you, are free and easy to use and give you a
good idea as to how much you should be paying.
As with all product comparisons, when it comes to house
insurance, do compare premiums on a like for like basis to
ensure you get the level of cover you need.