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A Comprehensive Guide to Home Insurance

by Team Techager
A Comprehensive Guide to Home Insurance

In this guide, we will walk you through all the necessary information you need to know about home insurance in the UK.

You can compare quotes for home insurance at Quoteradar.co.uk.

What Are the Different Forms of Home Insurance?

There are two primary types: building and contents insurance.

These can be purchased individually or as a bundled house insurance package.

Building Insurance

This protects you against damage to your home’s structure, including the walls, roof, and flooring. It typically includes coverage for damage to fittings and equipment. It is not required; however, it is typically a requirement of your mortgage. Whether or not you have a mortgage, this coverage should be a primary priority if you possess your own home.

Contents Insurance

This protects you against the loss or damage of personal belongings in the event of a fire, theft, flood, or similar occurrence. It protects your personal property, including anything that is not physically tied to the structure, against loss or damage.

In contrast to building insurance, this is an elective. However, it is good for both renters and homeowners to insure their belongings.

Do I Require Both Building and Content Insurance?

Many individuals will require both buildings plus contents insurance, while others require only one sort.

You could require both if:

You own a residence. Probably, you require both. Although buildings insurance is not required by law, mortgage lenders typically require it. Even if you own your home completely (i.e., there is no mortgage), it’s usually a smart idea to purchase insurance, as it will cover costly repairs or rebuilding in the case of damage.

You own the property free and clear. Repairing structural damage can be very costly, so insurance is strongly recommended. If you own a flat or condominium, you may be eligible to obtain the plan for a single building with other owners.

You’re a landlord. Your mortgage lender typically requires buildings insurance, and contents insurance is prudent if you outfit the home. One option is to purchase landlord coverage, which covers your property and rental revenue and covers your liability if your renters sustain damage or injury.

You might not require both if:

You’re a tenant. You will likely require property insurance. Your landlord is responsible for obtaining the necessary coverage, so you do not need to get building insurance. But if you want your belongings protected, you must obtain content coverage, not the owner or landlord.

You have a leasehold apartment but no freehold interest. The freehold owner will probably insure the building, but you may be required to pay a portion of the premium through your service fee.

If you and other leaseholders possess a portion of the freehold, you will be jointly responsible for purchasing building insurance. Your attorney can tell you if your lease requires you to obtain separate building insurance. Either way, you will need content coverage if you wish to secure your items.

If you require both buildings plus contents insurance, purchasing both together on a single policy is typically less expensive than purchasing them separately.

Having a single policy might also make filing a claim for buildings and contents coverage easier and faster.

How To Lower Home Insurance Premiums?

Some insurers will not provide coverage unless you have BSI-approved locking on all exterior doors and windows. Most insurers will assist you in identifying existing locks.

Install alarms: both smoke and intruder alarms are essential. Ensure they’re approved — a National Approval Council for Security Systems (NACSS) alarm could get you a premium rate.

Increase your policy’s deductible: if you’re willing to cover a bit higher portion of the price of a claim, you may reduce your premiums.

Grow your no-claims reduction: if you don’t file a claim for several years, you may be eligible for a discount; however, not all insurers offer this, so verify before buying.

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