Dwelling insurance – tips on how to get the most effective offers and probably the most complete insurance protection – Splendid Dwelling
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Nobody wants to think about their home being damaged or their possessions stolen, but sadly, bad things happen to the best of us. This is where home insurance can help.
Home insurance is a type of insurance policy that covers loss and damage to your home. It is a really important product to own as it ensures that in the worst case scenario, you will not be left out of your pocket.
There are three main types of home insurance: home insurance, home insurance, and combined home and home insurance.
If you are negotiating a new mortgage rate on your property, your lender will most likely insist that you have adequate home insurance. Tenants usually do not need building insurance, but household insurance makes a lot of sense, as rental apartments are often at risk of theft.
Whichever product you choose, it's really important to look for the best deal and make sure you are buying the right amount of coverage.
A brief introduction to home insurance
In principle, home contents insurance pays for damage and losses that occur to your house and its belongings. Depending on the policy taken out, damage to the actual building structure – for example from fire, storm or flood – can be covered. It can also cover damage and loss to everything inside the building – for example, if you are a victim of theft.
As mentioned earlier, there are three main types of home insurance:
- The building insurance covers damage to the actual structure of your property – for example roof, walls and windows – as well as permanent furnishings such as fitted kitchen, bathroom and toilet. Most policies pay out to repair damage caused by fire, storms and floods, burst pipes, theft, falling trees, vandalism and subsidence. It Typically does not cover damage caused by general wear and tear, neglect, poor home improvement, pest infestation, moisture and condensation, or frost damage.
- Home insurance covers almost everything you have in your home against loss or damage. This can be caused by events such as theft, fire, storm or flood, water or oil leak, explosions, falling trees, vandalism, and earthquakes. Content is usually things that you would take with you if you were moving – such as TVs, computers, jewelry, clothing, kitchen appliances, furniture, carpets and curtains.
- The combined building and household contents insurance offers you protection both for the structure of your property and for the items it contains.
This is how you get a good offer for home contents insurance
1. Never renew automatically
Add a note to your journal or set an alarm on your phone for the month before your policy expires. That's because if you auto-renew your policy, you're likely paying the same price … and missing out on potential savings or perks like cashback or free gifts.
Effective January 1, 2022, new law by the Financial Conduct Authority's insurance regulator will prohibit home (and auto) insurance providers from charging a customer more for the same policy when renewing than they would for a “new” customer taking out the same coverage .
Known in the industry as "pricewalking," this practice essentially penalized customers for their loyalty.
And while this new policy is good new, it doesn't necessarily mean you are still getting the best deal. So you should always look around.
2. Assess your coverage
Check how much insurance coverage you are currently getting and ask yourself whether the household effects are really worth it. The more coverage you need, the more expensive it will be. As such, it can be worthwhile to reconsider your inventory, especially if the kids have moved out or you have done a lot of tidying up.
That means, don't underestimate your belongings either. In the worst case scenario, you may not be able to afford to replace them.
3. Use more than one comparison page …
Fill in your details on multiple websites like GoCompare and Confused.com to find the best deal.
4. And offers directly from the insurer
Some insurers – including them – cannot be found on price comparison sites. That doesn't mean they don't have great deals on, so check out these separately.
5. Look for cashback offers and incentives
Sites like Quidco and TopCashback offer a flat-rate or percentage cashback if you take out insurance with certain providers. This can often be in the tens of pounds, if not as much as 100+ pounds. However, withdrawals can take a while and are not always guaranteed. So if it's not a good deal without cashback, don't bother.
Is home contents insurance compulsory?
Home insurance is not required by law, but if you have a mortgage your lender will likely make home insurance a condition of the loan. Even if your home owns your own home, you should seriously consider getting home insurance. Property repairs can be extremely costly, and the bill can run into hundreds of thousands of pounds should your home be destroyed in a fire.
Tenants don't have to worry about building insurance as the landlord is responsible for insuring the property. However, both tenants and homeowners should consider taking out home insurance. Replacing all of the content after a fire, theft or flood can make you financially unstable – far more than if you paid an insurance premium every year.
“When deciding whether to take out home insurance, ask yourself,“ Can I afford to have my house and myself covered financially if something goes wrong? ”If the answer is no, it is best to be careful his and your property to be insured. It's usually the largest, most expensive asset you'll own, ”said Mark Gordon, CEO of Compare By Review, a comparison site that ranks vendors based on the quality of their services and products.
How Much Home Insurance Do I Need?
It is really important to find out how much home and / or home insurance you need so that you don't end up paying for a failure. Buildings insurance should cover the cost of rebuilding your property. This is usually less the market value of your home, which includes the price of the land. The ABI has a helpful calculator that gives a rough idea of the renovation costs of your house.
Home insurance should cover the cost of replacing all of your possessions with the purchase of new items. There are several guides available online to help you determine the value of your property. Confused.com has one Content calculator that adds the value of all the objects in your home, room by room.
Most home insurance policies have an overall cap that applies to items of value such as art and jewelry, and a cap to any high-value item. The limit per item is typically around £ 1,500. However, some policies offer more than £ 10,000. It is important to check that these limits are enough to cover your valuables.
"Your total value needs to be as accurate as possible, so it's worth checking out how much a replacement would be for each item on your list," says Mark. “In most cases, the value of an item is what it would cost to replace it today. Which in some cases is probably not the same amount that you paid for it. "
Which home insurance is the best in the UK?
Many companies offer home insurance, so it pays to take the time to do market research before applying. Top-rated companies include John Lewis Finance, Saga, LV =, and Direct Line. According to surveys by Bought by Many, they offer high (or even unlimited) home and home insurance and good customer service.
Some companies target certain types of property or population groups. NFU Mutual is aimed at households in rural areas. Covea offers very high insurance coverage for expensive and non-standard household items such as golf clubs and bicycle equipment. And Endsleigh is a specialized student home insurance provider.
What do I have to expect on average to pay for home insurance?
Combined home and home insurance costs an average of £ 313 per year, according to the ABI. Home insurance costs around £ 254 a year. And content insurance costs around £ 129 a year.
Remember that these are just averages. The actual premium you pay will depend on things like the size and type of your property, where it is located, and how much your property is worth. We took a closer look at home insurance costs so you can get a better idea of what to expect.
Why is my home insurance so high?
Insurers take a variety of factors into account when calculating the insurance price. They look at your place of residence to assess whether there is a risk of flooding or higher crime rates. They also take into account the size and age of your property. Larger houses attract higher premiums, as do very old or listed buildings. Non-standard building materials can also increase your premium as they could become more expensive to source and repair.
Certain factors also affect the price. If you have made claims in the past, it will most likely increase your premium. And leaving your home uninhabited for a long time can cost more too.
Sometimes there are also external influences. Storms and an increase in the total number of non-life insurers could cause them to raise premiums for all of their customers.
How can I reduce my home insurance?
If your home insurance is to be renewed, it is advisable to check the prices of other, comparable products. You can save money by switching to a different insurer. But remember, it is important to buy the right cover, not just the cheapest.
- If you need building and household contents insurance, it can be cheaper to take out a combined policy than two policies from different providers. Although this is not always the case. Paying your premium annually is almost always cheaper than paying monthly.
- It is worth checking that you are not overinsuring yourself. Make sure you use online calculators to get an exact figure for the cost of your home remodeling and the value of your contents. Also, make sure you don't pay for extras that you don't need. For example, if you live in an attic apartment, you don't need excessive garden coverage.
- Another option for reducing premiums is to set up a no-claims discount. Try installing a burglar alarm and smoke alarm, setting up the best home security system you can afford, and joining the Neighborhood Watch program.
- A final option to reduce your premium is to pay a higher deductible. The policies have a fixed, compulsory excess and a voluntary excess that you can set yourself. Remember, the higher the deductible, the more expensive it will be when you make a claim.