This is a guest article written by a staff writer at www.moneysupermarket.com
There are many factors to consider when buying home insurance. The two most important ones are content and building cover but you can also insure for other items such as garden cover or individual items of jewellery.
As the name suggests, content cover is the part of the policy that insures the items in the house whereas building cover solely applies to the bricks and mortar.
This article looks at 5 simple but important points that everyone should consider, not only to get the best insurance cover for their needs but also at a competitive price.
1 - Calculate the value of your contents
This is something that you should think carefully about as contents value and policy premium have a strong relationship. If you have receipts for your items, brilliant, but don't forget that if you do have to replace any of them, the insurance company will only give you the amount necessary to replace like with like.
One tip on valuing your contents is to take an hour or so and video every room in your house moving the video slowly from item to item. But make sure the recording is kept in a safe place outside the house in case of fire.
2 - Use 'Bolt On' policies where needed
If you have any valuable items, such as jewellery, you may wish to have these listed separately or in some circumstances a “bolt on” may be necessary. A bolt on is simply an extra piece of cover designed specifically for an item or risk factor.
A good example of this would be wedding cover. Many of us do not realise the average contents of our homes may rise by £3,000 or more due to receiving wedding gifts. Many insurance companies are now offering these bolt on packages as standard. You can even cover that nifty iPod you got for Christmas in the event of it being stolen.
3 - Check how much individual items are covered for
Most insurance policies carry a maximum value for any one item so don't forget to mention any expensive items you own. If necessary take out a bolt on to the policy.
For example, a relative may have left you a valuable antique clock valued at £10,000 but your insurance policy only covers any individual item for a maximum of £1,500. In this case a 'bolt on' policy for the clock should be seriously considered
4 - Make your home as secure as possible
All insurance is a matter of risk assessment, therefore, the safer your property, the less risk you are to the insurer. This will then be reflected inversely in the premium price you pay. Simple security measures include -
- Restrict access to your garden/property by making sure gates are locked (add locks where necessary)
- Add a security light to the rear of you property (and front if secluded)
- Install an alarm system
It is common for an insurance company to ask that you install extra bolts on certain windows and doors. This is a good practice to follow in general as it will provide extra safety, especially on older wooden windows and doors.
There is also another hidden value in securing your property. You're less likely to be burgled which in turn means you won't have to claim on your policy, which in turn means it's unlikely that your premium will rise significantly in the future.
5 - Read the small print
Always check if every requirement you need is met when you finalise your application and read through the policy when you receive it. This point cannot be stressed enough because research shows that around 34% of people fail to read their policy documents and a further 41% are unaware of the maximum contents cover of their house.
Failure to read your policy documents can mean you do not know what is and is not covered. For example, storm and flood damage. Take note of this point in relation to the sudden storm damage that has happened throughout the country over the last several years.
Summary
These simple guidelines will help you to choose a policy suitable for all your home insurance requirements but doing your research and contacting many different insurance companies looking for quotes will take up a lot of time.
But if you use a comparison site such as MoneySupermarket.com this will enable you to quickly compare what the different home insurance companies offer.
Finally, it is important to remember that you must look for a quote that offers you the features you need at a decent price, rather than simply looking for the cheapest.
Useful Links
