How a lot does home insurance value? All the pieces it is advisable to know – Very best Residence

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  • If you are wondering how much home insurance costs, you are probably not alone. One in four UK households does not have home insurance, according to the personal finance comparison site, so they have no protection for their most important and valuable asset.

    Household contents insurance can only be another cost factor that you have to accept. But it's a policy that you really shouldn't be without. If your home is broken into or a burst pipe causes a flood, you'll be glad you paid the premium. And if something worse happens, like a devastating fire, you could get into real trouble without proper insurance.

    With many policies costing less than £ 150 a year, skipping home insurance can prove to be the wrong economy. According to the Association of British Insurers (ABI), the average home insurance claim is £ 3,690. This is money that most people don't have to go without.

    Not to mention the average cost of £ 32,000 for flood damage. And you can get good deal with shopping as long as you understand what you are buying.

    How much does home insurance cost?

    Building and content coverage

    The term home insurance actually encompasses two different types of coverage, but you can often buy them together.

    First, home insurance covers the bricks and mortar in your home, including floors, ceilings, and fixed furnishings such as fitted kitchens and bathrooms. It usually also covers "outbuildings" like your garage, shed, and greenhouse. This insurance pays off if your roof is damaged in a storm, for example.

    Household contents insurance, on the other hand, covers your personal belongings. This is basically anything you would bring with you if you were moving, including furniture, electronics, and personal items like jewelry, ornaments, and clothing.

    Both insurances are designed to cover the cost of repairing or replacing items if they are damaged, destroyed, or stolen as a result of events such as fire, flood, or burglary.

    Do you need insurance?

    Photo credit: Future Plc / Colin Poole

    You are probably wondering if I need home insurance? Building or household insurance is not required by law – you usually have the choice. However, if you do have a mortgage on your home, the lender can make adequate building a condition of your loan.

    Even if this is not the case or if you have paid off your mortgage, home insurance makes sense. Could you finance the cost of repairing major damage from your own savings?

    However, if you rent, you don't need home insurance. This is because your landlord is responsible for protecting your property.

    Wondering what content insurance is? It's always optional so you don't need it. But think again about the cost of replacing your property. Research by the ABI shows the average three bedroom home is worth £ 55,000 worth of property. You could cope with a break-in and lose £ 300 worth of items, but what if everything you own is destroyed in a fire?

    Home contents insurance costs

    The cost of home insurance depends on the size of your property, the value of your property, where you live and the coverage you need.

    You can take out property insurance and household contents insurance separately. The average cost of a building policy is £ 110 per year, compared to £ 56 for the content, according to price comparison site If you need both, you can often save money by buying combination insurance, which costs an average of € 141.

    Home contents insurance coverage levels

    Don't assume that the cheapest policy is best for you. Above all, ensure that you have adequate insurance cover, otherwise you could still reach out of your pocket in the event of damage. For content insurance, most insurers offer “block” levels of coverage – up to £ 50,000 or £ 75,000, shall we say.

    Some, including LV =, AA, and Swinton, have "content calculators" on their website with drop-down menus for each room. These can help you determine the replacement value of large items along with bedding, curtains, televisions, freestanding kitchen appliances, and personal effects.

    With home insurance, you don't need to insure the potential sale price of your property, but the rebuilding costs, which should be lower. The insurers will usually charge you these costs as part of the offer process. But you can do it yourself using ABI's free rebuild tool.

    Do not be tempted to save on the levels of coverage. Even if you claim a small amount of damage, you can still lose. For example, if your insurer thinks your property is worth £ 100,000 but you are only insured for £ 50,000, they may try to downgrade the claims by the same ratio. For example, it can only settle £ 500 out of a £ 1,000 claim.

    Home insurance extras

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    Photo credit: Future Plc / Dominic Blackmore

    In addition to your basic protection, most insurers offer optional extras. These are worth considering, but may not be required.

    “Accidental damage and personal effects are the most important additional coverage people need,” says Nicola McCheyne, head of technical underwriting for private clients at Zurich UK. Accidental damage covers you if you have an accident and something breaks in the property. For example, if you knock a TV off a stand and smash the screen.

    “Most home insurance policies include an element of accidental damage within the standard policy, such as attaching glass, sanitary ware, or underground pipes or cables to buildings. Even with content, for glass in furniture, mirrors, televisions or audio / electrical devices, ”explains McCheyne.

    The purchase of additional accident insurance extends this, however. For example, you can make claims if you pat a can of paint all over your carpet while decorating.

    Regarding personal property insurance, this is where you need to check if you are insured for personal items that you take outside of your home, such as your laptop or jewelry that you carry.

    Most guidelines set a "single item limit". This is the maximum payout per item and is typically around £ 1,500. In the case of higher-value items such as technical devices or pieces of jewelry, you should provide the insurers with details about each item separately. This may incur an additional fee.

    Shady DIY can void your policy

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    Photo credit: Future Plc / David Brittain

    Household contents insurance offers protection against unexpected costs, but is not a blanket cover for every emergency. And keeping your home in good shape is usually a requirement of most policies.

    "Insurers can decline claims for accidental damage if the event was caused by poor workmanship or faulty materials," warns Ryan Fulthorpe, GoCompare home insurance expert. "For example, if you take jobs that you are not qualified for, your home insurance may expire and you will be liable for the cost of repairing any damage caused."

    How to get the best deal

    Browsing comparison sites can save you money, although not all providers are listed. Always compare the coverage "same to the same", as the insurance conditions and the deductible may vary depending on the insurer. So you can find a cheaper premium, if it means a much higher deductible in the event of a claim, but you have to weigh up whether it is worth saving.

    Avoid setting your policy to "auto-renew" as you may miss out on better deals. Whenever possible, pay for the insurance all at once instead of splitting the payments. Insurers offer the option to pay monthly, but this can cost up to 40% more. One way if you can't afford to prepay is to use a credit card with a 0% deal for "new purchases" and pay them off interest free.

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