Home Insurance

Whatever your circumstances, you do need a policy of insurance that covers contents. No matter that the property is rented or shared, you are responsible for obtaining cover against the risk of damage or theft. With theft and burglary being an all too common occurrence these days, you would be unwise to take the chance of not insuring your property. A good contents insurance policy also provides protection against loss of personal items from both in the home and away for limited periods. For instance, if you lose an item of jewellery while at work, you may be able to claim against your home contents insurance. Many policies also allow you to claim for the cost of emergency accommodation if your home is damaged to such an extent that it becomes uninhabitable – flooding for instance. Furthermore, such a policy may also provide personal liability insurance that will cover you against claims for compensation as a result of your negligence. In addition, legal expenses are often also included if you are sued because of some alleged negligent act.

For a slightly larger premium, you may wish to obtain an accidental damage policy that will cover an item damaged by carelessness –such as a sofa ruined by red wine or an indemnity policy commonly known as ‘new for old’.

Now let me move on to Buildings Insurance. If you are a tenant of rented property, the landlord is responsible for structural cover. However, if you own the building, you most certainly do need a policy of buildings insurance. The entire structure from roof to foundations, as well as boundary walls, driveways and paths and other detached outbuildings are covered by this insurance. A good policy will provide cover against damage and destruction by many causes including fire, flood, a vehicle colliding with the property, lightning strike etc. A policy will also cover you against damage caused by vandals. There will be exclusions however. Few policies will cover the all too frequent damage caused to fences blown over in the wind, and your policy will almost certainly contain a caveat against the insured property being left unoccupied for over a stipulated period of time (normally 30 days).

Most importantly, you must decide on the value of the possessions you wish to insure. The insurance premium you will be required to pay depends on this. It should be as accurate as possible as many people find to their cost when faced with a bill for rebuilding their home only to discover that the sum insured is far below the prevailing market value. Don’t forget to include the potential cost of site clearance and fees payable to architects and surveyors in the event of your property requiring a total rebuild.