Your home is likely to be the largest, most important purchase you’ll ever make. With this in mind, it’s important to ensure that your home has the correct level of protection in place.
If you’re purchasing home insurance for the first time, you may find it can be a little confusing. Sometimes people don’t fully understand which policy is right for them, so end up buying insufficient cover.
Here are a few pointers to finding a policy that suits your needs:
· There are two types of home insurance: buildings and contents. They’re quite self-explanatory – buildings insurance protects the actual structure of your home while contents insurance covers the items within it. Sometimes, buying the two together from the same provider can work out more cost-effective.
· The amount of buildings insurance you need will be dependent on the rebuild cost of your property. This is the amount it would cost to totally rebuild your home from scratch. Don’t confuse this with the market value of your property. The rebuild cost will typically be lower.
· Remember, all of your possessions might not be automatically covered under a standard contents insurance policy. Items such as bikes, laptops or high-value jewellery may need to be specified to you insurer and may need additional cover. If you’re unsure, talk to your provider
· Always take note of any excess attached to a policy. This is the amount that you’d have to pay out of your own money in the event of a claim. Opting for a higher excess may mean you pay less for your policy. However, make sure you’d be comfortable paying this amount should you need to claim.
· Shop around and compare home insurance quotes from a range of different providers. You should compare all the policy features as well as the price, as the cheapest policy may not offer you the best level of cover.
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