There are many types of home insurance policies to choose from the most common is the Building Insurance and the Contents Insurance, we shall discuss both in addition to Liability Insurance.
Building Insurance
This type of insurance is for the protection of the structure of your home. It covers the fabric of the building, including built-in kitchen units and bathroom suites, outbuildings, including sheds and garages, and any walls, gates or fences.
These policies tend to cover against damage or destruction caused by fire, storms, theft, vandalism, escaped water, flooding and subsidence.
The amount of coverage you should consider insuring for should be for the rebuilding costs of the dwelling, as in the case of a fire the complete dwelling may be destroyed.
This is not necessarily the market value of your property, or the purchase price. In order to know this value, you will need a professional property evaluation.
When you are about to start your improvement work you should notify your insurance company, as many policies do not cover major improvement works. You should also consider increasing the amount of cover to include for the additional improvements works.
Contents Insurance
The typical UK contents insurance policy covers loss of or damage to the following home contents:
- Any removable items of furniture that are not part of the fixtures
- Home furnishings, including carpets and curtains
- Household electrical goods and equipment, such as televisions, videos, stereo systems
- Computers and peripheral equipment
- Removable kitchen equipment, including your fridge, freezer, and their contents
- Personal items, including clothes
- Any other high value items specified in your home contents insurance policy.
Most contents insurance policies exclude high value items such as jewellery, unless individually itemised within the policy. You are therefore advised to obtain separate valuations on expensive possessions such as jewellery, rare antiques, musical instruments, and works of art. Such high value items need to be insured separately.
As with buildings insurance, most policies pay out in the event of a burglary, vandalism, fire, storm and flood, and premiums are calculated according to the type of property you own and its location.
Again when you are about to start your improvement work, notify your insurance company, in case additional cover is required while workmen are around your property.
What Is Liability Insurance?
Having liability insurance cover means that if visitors to your home injure themselves on any of your possessions; say for example, tripping over a rug or piece of furniture, and then decided to make a claim against you, your additional liability insurance should cover any legal costs you may incur.
Builders are required to have insurance cover while they are working on your property. But it would be better to let the insurance companies fight it out than to find that you and responsible and are not covered.