Our homes are our sanctuaries as well as one of the biggest investments we’ll ever make, meaning it’s really important to protect both your comfort and your finances.
One of the best ways to do this is through home insurance, but with so many policies out there, it can be hard to know what to look for.
The policy you choose will largely depend on your personal needs and circumstances, but this blog can help you sift through your options and make a meaningful choice when the time comes.
What To Look For In A Home Insurance Policy
Costs
Home insurance can be a significant cost, especially if your home is worth a lot of money or you also want to protect high-value items such as electronics.
This is why it’s so important to get insurance quotes for home policies before jumping into anything. Most providers make it easy to get a quote quickly, helping you to compare and contrast terms and conditions while being aware of how a policy will fit in with your budget.
Type of home insurance
Home insurance is typically split into two types: buildings and contents, though many people take out both together under the home umbrella.
If you’re a renter, you likely only need contents cover, whereas homeowners will need buildings insurance more and may choose to add on contents as well.
There are also other things to consider though, such as if you own a leasehold house or flat. In this case, you may need ground rent indemnity cover, especially if your lease is expensive.
Excess
Most home insurance policies will require you to pay some kind of excess to make a claim. Typically the higher this excess is, the cheaper you home insurance premiums will be.
However, having a very high excess may make you think twice before making a claim, especially if the repairs that need carrying out won’t cost much more than that.
So, when choosing how much excess you want to pay, think about how much you have saved in your emergency fund and whether paying that amount would be a hardship for you.
Flexibility
Are you planning to move in the next few years? Or maybe you’re planning on having an extension fitted.
Whatever life changes you think could be coming your way, it’s important that your home insurance is flexible enough to fit in with these changes.
Some policies may be fixed for a particular address for a certain length of time, while others may not let you decrease your coverage if you downsize your home. Make sure your contract suits your future plans before signing on the dotted line.
Extra Cover
Home insurance doesn’t always cover every eventuality. For example, if your art collection was damaged in a flood or your inherited jewellery stolen, your home insurance may not cover it, especially if they’re very valuable.
Check if your policy has a single-item limit and whether it allows you to cover very valuable items separately.
Similarly, not all policies cover natural disasters, so if your area is at risk of storms or wildfires, you may want to make sure this type of cover is added on as an extra.
Home insurance is the one thing you hope to never use, but you need. When choosing the right policy for you, use these areas as a checklist to find the best deal and policy for your home.
