Home Insurance Basics at a Glance

Home Insurance Basics at a Glance - image

Not only is home insurance necessary if you happen to own a property, but this type of protection will come in handy if you happen to experience unexpected circumstances, such as third-party injuries, fires, floods or theft. The good news is that these packages tend to be relatively straightforward. Still, it is always a good idea to have a look at the basic theory behind home insurance before moving on to examine some of the most common policies as well as what benefits each has to offer. You will then be able to make an informed decision when the time is right.

Why do You Need Home Insurance?

The most obvious answer to this question is financial protection. An uninsured homeowner is open to a great many risks including civil and even criminal liabilities. This is in addition to the thousands (or even millions) of pounds that could be claimed as damages by a third party in the event that the case is judged in his or her favour. In the same respect, it is impossible to apply for a second mortgage if you do not possess home insurance. It is therefore obvious that this type of protection is critical in our modern times. So, what types of packages are you likely to encounter when speaking with a provider?

Contents Insurance

This is arguably the most common package, as it tends to be the cheapest. As the name suggests, contents insurance is intended to provide you with protection in the event that the contents of your home are damaged or otherwise lost (such as in a flood or fire). If you are looking for a standard package, this could be a great option to keep in mind.

Basic Liability Insurance

Liability insurance plans take into account others that might be visiting your home (such as if you own a home-based business). In the event that they become injured on your property as a result of negligence or other issues, you will be financially protected up until a certain point. Basic liability is another low-end package and it is often used in conjunction with the contents insurance mentioned above.

High-Value Home Insurance

Do you own an extremely valuable home or are its contents priceless? If so, high-value home insurance is a smart option. Most insurers feel that this type of insurance will apply to homes that will cost £500,000 pounds or more in the event that they have to be rebuilt. However, this interpretation can vary. It is therefore a good idea to ask around to see exactly what is covered.

Buildings Insurance

Buildings insurance is unique in the fact that it covers other areas of the home such as the roof, the bathroom and any kitchen fittings (these are not always insured under standard policies). You might also be able to include sheds and garages within this framework. Please note that most agencies will not approve a mortgage if you do not first possess some type of valid buildings insurance.