Home insurance is a policy that protects your home and its contents from theft and damages as a result of accidents like fires or flooding. Home insurance has two main coverage; buildings insurance and contents insurance.
Buildings insurance covers your home’s fixtures like roofing, walls, bathroom and fittings. Contents insurance covers the belongings in your house. House contents are those things apart from buildings that you would need to take to move out. They may include chairs, television, jewelry, clothing, etc.
Unlike car insurance, home insurance is not mandatory in the UK. However, it would help if you had home insurance to cover you against losses due to damages or theft. Also, some circumstance requires you to have home insurance. For instance, if you wish to take out a mortgage on a property, you will need to have home insurance. Also, in some cases, you may need to take contents insurance when renting a house. The landlord should cater for the building through landlord insurance.
To get the best price for home insurance in the UK, you should shop around. Compare the prices and benefits provided by every home insurer. However, on average, buildings insurance costs 113 euros every year while contents insurance costs 68 euros every year. The average cost of combined insurance for buildings and insurance is 146 euros per year.
Several factors influence the price of home insurance. For buildings insurance, the price is determined by how much it would cost to build the house, while your possessions’ value determines the price of contents insurance. Most insurers will also consider if you have claimed in the past. If you haven’t, you will be given a no-claims discount.
To get home insurance, you would need to provide the following:
- Policy documents for your current home insurance
- The cost of rebuilding your house
- The level of home insurance cover you need
- The value of your personal belongings
- Lock types and alarms if there are any
- Your roof type
- Details about your home buildings or contents
Premiums for your home insurance can be determined b the following factors.
- The type and size of your home
- The number of people in your home
- The location of your home
- The value of tour home
- The value of your home belongings
To make your home insurance cheaper, there are a couple of things you can do. They include:
Shop around. You need to compare prices from several home insurance providers. Whenever you want to renew your home insurance, always check if there are insurers that can offer lower prices for the same policy and coverage.
Increase excesses. To reduce your premiums, you should raise the amount you would need to contribute towards your claim. However, ensure you can afford the amount.
Build a no-claims discount. If you do not claim, you get no claims discount. You can build a no claims discount over time to get lower the costs of your home insurance.
Purchase a combined policy. If you want to insure your buildings and its contents, you are likely to get a discount if you buy both policies from the same provider.
Improve your home security. Installing security features in your home could help bring down the cost of your insurance. You can use strong doors, smoke alarm and burglar alarm.
In addition to the home insurance, you can add more insurance covers. They include:
- Home emergency cover. The home emergency cover provides help during emergencies.
- Accidental damage cover. The cover protects your house and its contents from accidental damages caused by a member of your family.
- Legal expenses. The cover protects you from legal liabilities in case of a dispute. For instance, it can cover a third party who gets hurt inside your home.
- Personal possessions. The policy protects items that you carry out of your home. If these items get lost, you can claim. They include phones and laptops.