Do I would like home insurance? Specialists clarify the authorized necessities – Ultimate Residence

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  • When it comes to managing household finances, it is easy to understand why you think some insurance is redundant. When you buy a home, you may be unsure of the expenses involved and wondering "do I need home insurance?" Especially if you want to save money on "unnecessary" expenses.

    Before you decide to take out insurance, however, it is important to understand which ones will actually make you financially stronger and which ones you can do without. We ask experts to qualify the home insurance policies that everyone should have.

    Do I need home insurance?

    How many times have you thought to yourself, "I could save money by not taking out insurance … but do I need one?" When it comes to home insurance, the answer depends on what type of home insurance – home insurance or home insurance.

    Photo credit: Future / Colin Poole

    "If you're a homeowner, you legally need building insurance as a condition of your mortgage," advises Kalpana Fitzpatrick, columnist and financial expert at Ideal Home. ‘Content insurance is optional. But before you forego home insurance, consider how much it would cost to replace your belongings in the event of theft, fire or even accidental damage. "

    Contents insurance covers the cost of your belongings such as sofas and televisions, etc. A contents insurance means that your property is covered by the existing insurance policy in the event of accidental damage or burglary. Not having to pay a home insurance premium can save you money, but it can cost a lot more in the long run if any of the above occurs.

    "One in four households has no home contents insurance, which puts them at risk if they have to replace expensive goods," says Kalpana. "If you rent, it is still important to protect your belongings with household insurance, even though you don't need building insurance – the landlord is responsible for that."

    Is it bad not to have home insurance?

    Where you live will determine whether it is bad not to take out home insurance. For example, Lizzie Schulz, attorney at Ashfords explains; “If you own a property, building insurance is not required by law. But it is usually required by a mortgage lender when making a purchase. "

    “If you don't have a mortgage, it's usually up to you whether you have home insurance. In any case, you are responsible for repairs to the property that are not covered by insurance. "

    Lizzie continues; “If you have a leasehold (a common agreement for apartments), the insurance requirement may vary. Your insurance obligations are regulated in your rental agreement. If you are unsure, you should seek advice. "

    “Usually the landlord is responsible for repairing and insuring the building. And the costs are distributed to the tenants as a flat-rate for ancillary costs. However, it is also common for a tenant to repair and insure parts of the building for which they are legally responsible. While the landlord takes over the common parts of the building. ”This relates to building household insurance and not household contents insurance.

    “The landlord doesn't have to insure the building rented to tenants,” explains Lizzie. “However, it is common for a rental agreement to require the landlord to insure the building. Regardless of whether or not insurance has been taken out, landlords are legally obliged to repair all damage and to keep the property in an appropriate condition at all times. "

    Insurance checklist

    Wooden tray with paperwork

    Photo credit: Future / Nick Pope

    There are some golden rules to be followed with any type of insurance. "Always be honest when you take out insurance, otherwise your policy could expire," advises Kalpana.

    “The cheapest policy may not always be the best for you. Make sure you buy the right coverage for your needs, ”she suggests. Check the excess amounts in your policy to make sure you are paying the right amount for what you can afford and what your insurance covers.

    “You can buy insurance through comparison sites, but it's also worth getting direct quotes at the best price. For insurance such as auto and home, write down the expiration date and look for a new listing before it ends. Because the prices for the automatic renewal are not always the best. "

    "When you buy or rent a property, your attorney is qualified to advise you on your insurance obligations," explains Lizzie Schulz, solicitor at Ashfords. "They can refer you to reputable insurance brokers to get you started."

    * Association of British Insurers

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