5 Things to Consider Before Taking Out a Home Insurance Policy

By accessibleproperty

June 15, 2022

Home insurance can provide you with financial recompense if your property is damaged and it will give you peace of mind in the meantime. However, the quality of your policy will have a significant impact on the success of future claims. To make sure your cover lives up to your expectations, take a look at these five things to consider before taking out a home insurance policy:

1. What Type of Insurance Do You Need?

If you’re a homeowner, having buildings insurance (at a minimum) might be a condition of your mortgage. Alternatively, if you’re renting, you might be required to take out tenant’s insurance. Before you purchase a home insurance policy, check any contracts that could specify what type of policy is needed. Similarly, confirm whether a minimum level of cover is needed to satisfy existing agreements. 

There are many different types of home insurance available, but a comparison search makes it easy to find the right policy for you. By searching through multiple providers and customising your policy, you can make sure it provides the cover you need while keeping costs low. You should also ensure it matches the location your home is in – with coverage differing for home insurance in NI vs England. 

2. Do You Need Contents Insurance?

Buildings insurance is designed to cover the actual structure of your home, but it doesn’t cover the items within your home. Instead, you’ll need to take out contents insurance (or a combined buildings and contents policy) if you want to insure your possessions, such as computers, televisions, games consoles, jewellery or furniture. 

3. What’s the Excess?

When you take out home insurance, your provider will specify what the compulsory excess is. This is the amount you’ll need to pay when making a claim. In addition to this, you can add a voluntary excess to your policy too. If you do make a claim in the future, you’ll be required to pay both the compulsory and voluntary excess but, the higher your excess is, the lower your premiums are likely to be. 

4. Is Accidental Damage Included?

Many people assume that every home insurance policy covers accidental damage, but this simply isn’t the case. Even if you have contents insurance, you won’t necessarily be able to make a claim if you knock over your television or spill water over a laptop. Accidental damage is often an optional add-on so, if you want this level of cover, be sure to check whether a policy includes accidental damage or whether you’ll need to pay extra. 

5. Do You Need Away-from-Home Cover?

Although home insurance is usually limited to your property and, perhaps, the contents of your home, some policies do offer away-from-home cover for certain items, like watches and mobile devices. It can be cheaper to add this type of cover to your policy than to take out individual cover for each item, so consider whether this might be something you could benefit from. 

Do You Have the Right Home Insurance? 

No-one wants to find out that they don’t have the right level of cover when they go to make a claim, so take the time to review your home insurance policy now. This will give you an opportunity to assess what type of cover you really need and whether you’re spending too much. Then, you can compare providers, modify your cover, and get the best deal for your home insurance policy.