Insuring your home is one of the best ways to remain financially protected should an unexpected event (such as a fire, flood or theft) happen to occur. Home insurance policies are generally straightforward and their primary intention is to provide you with financial protection so that you can deal with any legal fees and recuperate potential losses. Still, there are a few considerations to address before signing up for a policy and appreciating the differences between plans will provide you with the ability to make an informed decision (as well as to save a significant amount of money). Let's take a more detailed look at this important concept.
The Types of Home Insurance Policies
Home insurance policies can generally be classified in reference to the types of coverage that they provide. The main types are building insurance, contents insurance and (occasionally) landlord's insurance.
Buildings insurance is arguably the most basic plan that you can purchase. As you may have already guessed, this policy will provide you with protection in the event that the building and the surrounding property suffer damage. While the structure of your home is taken into account, many policies also provide coverage for permanent fixtures such as lights, bathroom taps and similar appliances. However, the exact stipulations will vary between providers.
Contents insurance is another popular option. This plan can be purchased in conjunction with buildings insurance or as an entirely separate entity. This can often be a good idea if you have a substantial number of valuable items within your home.
Landlord's insurance is sometimes grouped under home insurance; particularly if the landlord has entered into a direct relationship with the tenant(s). The main intention of this policy is to provide legal and financial protection in the event that a tenant brings proceedings against the landlord (or fails to pay rent for a significant period of time).
Considering the Premiums
Premiums are the monthly rates that you can expect to pay to enjoy financial protection. These should be carefully weighed against the aggregate value of your home as well as against the chances of filing a claim. These values will vary between different providers, so it is a good idea to compare and contrast at least three different firms before committing to a specific agreement.
Bundle Plans?
You might able to save money by purchasing home insurance as part of a “bundle” with other plans such as life insurance and car insurance. As opposed to making disparate payments, you will be provided with one lump monthly sum. A handful of the top providers which offer this service include Tesco Bank, John Lewis Finance, M&S Bank and Saga.
What to Look Out For
ALWAYS read the terms and conditions of any policy carefully. Also take into account the levels of financial coverage as well as any stipulations (such as a lack of protection if you live in an area prone to floods or fires). As with any insurance plan, research is the key if you hope to find adequate levels of protection.
