Household
Insurance
There are two main types of household insurance
- buildings and contents. You can buy them together
as one policy, or separately from the same or
two different providers. It is worth checking
both routes to see what makes sense for you in
terms of cost and cover offered. And that’s
easily done with Best
Solutions UK.
You’re not required by law to have household
insurance, although most lenders make buildings
cover a condition of the mortgage.
Contents cover is at your own discretion. But
think about how much you’ve spent on your
home over the years. On furniture, ornaments,
jewellery, clothes and in decorating it to your
taste. Can you really afford to replace all that
if you have a fire, flood or burglary?
Types of insurance
- Buildings
Buildings insurance covers the structure of your
building in the event of damage e.g. storm, flood,
fire. It often covers 'outbuildings' as well,
like sheds or greenhouses, although you should
check the policy carefully.
Types of insurance -
Contents
Standard contents cover insures your possessions
in the home like furniture, clothes and ornaments.
Policies often include extra cover on top, like
garden equipment, frozen food and money. If you
have something particularly valuable, you should
specify it separately - as a specified item (see
below). You can cover your possessions while away
from home under the all risks section of a policy.
Usually for a specified amount e.g. £5,000,
or the total value of items away from home at
any one time. You might do this for musical instruments,
sports equipment, skis, bicycles etc. Check the
policy to see if they're covered outside the UK
too. If so, you can save money on travel insurance,
because you don't need to include personal possessions
cover.
Some contents policies also cover possessions
at college or university. So if your son or daughter
is about to go away, check on your policy to see
if their belongings are covered. With Best
Solutions UK, you can select
this as an option. For valuable items that you
want to insure separately in or away from the
home (all risks), you'll probably have to specify
what they are (specified items). This usually
applies to things like jewellery, antiques and
electronic equipment. Some policies have an upper
limit to individual items; if they're really valuable
you may need to get specialist insurance - again
check the policy details.
What factors affect my premium?
Replacement value or number of bedrooms Your contents
insurance premium is based either on the number
of bedrooms you have, or your estimate of the
value of your possessions. Buildings insurance
is calculated on the rebuilding cost of your home.
It's worth calculating these properly, as they
will dictate the value you are insured for. If
you underestimate and are underinsured, the value
of any claim you make may be reduced in proportion.
Different methods suit different properties. And
the quotes you can get through Best
Solutions UK include all methods,
so you're sure to get the best value policy for
your circumstances.
Where you live has a lot to do with the amount
you pay to insure your home. Different postcodes
are rated on an estimate of the risk in that area.
A higher risk area could be one with a 'high crime
risk', or a history of flooding or subsidence.
Obviously you can't do much about this, but if
you're in a high crime area, it may be worth investing
in extra security. See below for more information
on security.
There are usually two types of cover: Standard
- usually covers events such as storm, flood and
fire. It may also include some accidental damage
to windows and TVs for example. Extended accidental
damage - covers any accidental damage to the property
like falling through the attic roof, breaking
a table or paint spillage. Obviously this costs
more but it offers more comprehensive cover, so
it's well worth considering. With Best
Solutions UK you can get quotes
with and without accidental damage cover, so you
can see what difference it makes to your premium
before you decide.
Security?
Improving your home security will obviously help
to reduce the risk for you, but it can also lower
the cost of your premiums. There are three main
types of security: Approved locks on all external
doors and windows A NACOSS approved and maintained
alarm Neighbourhood Watch schemes.
Insurers require that an Intruder Alarm System
must be designed and installed by a company approved
by the National Approval Council for Security
Systems (NACOSS), to British Standard 4737. This
would normally include the following:
Door contacts for perimeter protection
Movement detectors for trap protection
Self actuating bell and strobe light for external
signalling
The system must also be under a maintenance agreement
with an installer approved by NACOSS.
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