Exploring Different Types of Home Insurance Cover
From protecting a five bedroom house and its contents to getting a policy which protects a flat you’re looking to rent, home insurance cover can be tailored to virtually any property or circumstance. Although the basic premise remains the same throughout the sector, prices and features can change dramatically, so it can pay to understand the differences between certain policies and understand how costs are worked out.
There are actually two common kinds of home insurance cover - buildings insurance and contents insurance. It’s important not to get the two mixed up because not everybody needs both types. Buildings cover is for the actual structure of the home and permanent fixtures and fittings, while contents insurance covers the general belongings in there. So somebody who is renting will typically not need buildings cover, while somebody who is a landlord who does not live in a property may want buildings cover and no contents insurance, or a limited contents policy. There are even specialist deals designed to provide a level of protection to professional landlords.
One of the key components of a home protection plan is the total sum insured, and this is a concept which can be applied to both buildings and contents cover. This is essentially the maximum amount of money the insurance company would payout in the event of a claim, in the case of buildings cover this refers to the cost of building a house from scratch again, if it was totally destroyed. In the case of contents, it refers to the total combined value of everything which is kept in the house.
A home insurance cover deal may also involve an excess which is essentially an initial sum of money you agree to pay yourself towards replacing something in the event of a claim. To give an example somebody with a £100 excess on their policy would have to pay the first £100 towards replacing a £1000 hi fi System which was destroyed by a flood in the ground floor, for example. While this sounds like something of a catch, it is possible to get a very low excess on a policy in exchange for a higher premium in many cases.
Buildings insurance does not only cover against the doomsday scenarios including earthquakes, fire, and serious flooding, but also against some of life’s mishaps such as a burst pipe flooding and ruining the bathroom floor, for example. Something you may want to look out for is whether or not certain types of DIY accident are covered by a policy. For example, many do not cover against damage which was done to a home in the process of work which was not being carried out by a qualified tradesman.
Contents cover as part of comprehensive home insurance cover can also protect against things like fire, flood, plus theft in relation to all the general things which are kept in a house including furniture, appliances, jewellery, clothing, and even kitchen utensils. Some deals will even pay out for accidental damage, again meaning wrecking something in the house, such as dropping and smashing an expensive vase.