It is a foregone conclusion that a home is a very real investment; most likely one of the most important investments that you will ever make. This is also why possessing the appropriate insurance policy is a must. In fact, many mortgage lenders are now requiring such a package to already be in place before they will release the necessary funds to purchase the property in question. Let's take a quick look at the different types of home insurance policies before moving on to examine how to find the appropriate plan for your needs.
The Main Types of Home Insurance
We can break home insurance down into three broad categories: buildings insurance, contents insurance and a conglomeration of the two.
Buildings insurance (as you might have already suspected) ONLY covers the structure of your home as well as any permanent fixtures such as kitchen fittings and bathroom taps. Most policies will also take into account structures including garages and sheds. However, orangeries and conservatories might require additional levels of coverage.
Contents insurance focuses mainly upon what is contained within the home itself. These materials will be covered during unpredictable events such a fires, floods or theft. The cost of the policy is frequency based around the appraised value of what the home contains. For instance, those who own an antique car or expensive oil paintings will normally be required to pay higher premiums.
The third option (and the most popular) is essentially a combination of the two. Premiums will be based around the contents of the home as well as how much protection is offered in terms of structural concerns. Some portions of the United Kingdom (such as those prone to flooding) will naturally be associated with higher fees; stemming from a greater chance that properties could be damaged.
How to Find the Best Policy
Any home insurance policy should be based upon the value of the property as well as your budget. As you might imagine, there are dozens of different providers on the market. The first step is to compare and contrast the associated prices in synergy with what is covered. Look out for any loopholes such as very expensive items or clauses which may serve to void the policy. Always ask for a theoretical quotation before committing to any contract and determine whether or not any independent online reviews are available. Furthermore, be sure to receive quotes from at least three different providers. This is a highly competitive industry. Many firms will be willing to slightly lower their rates if you state that you have been tempted to look elsewhere.
Most policies will last for decades or more if you do not encounter any problems, so planning in advance is always prudent. Please do not hesitate to use this article as a quick guide when searching for the appropriate plan as well as the most amenable premiums.