card guide
Buying Contents and Buildings Cover

Keep it Decent

Exceptional deals on insurance are hard to come by as companies are all competing neck and neck for your business, but with a few sensible guideline and armed with some understanding of the industry you can still pick up a good deal.

Postcode coding

As you are probably aware the insurance industry is built upon risk, it estimates how high a risk there is of whatever you want to insure against actually happening. In the case of buildings and contents cover part of the data the insurance companies will access to work out that risk is to look at your postcode – that will tell them about the history of similar insurance claims in your area. Often insurance companies will actually list premiums for individual areas in their leaflets.

New for old

Make sure you have the type of cover that you actually want. Some of the cheaper home insurance policies for contents, for example are what are known as indemnity policies. This means that if you need to make a claim the company will assess how much wear and tear the item will have suffered in its life and will provide you with the finds equal to the current market value. So if you have a five year old three piece suite and it gets wrecked in a flood, the company will give you the money equivalent to a five year old suite, not a new one.

If you want the insurance money to be able to go out and buy a new three piece suite then you need “new for old” insurance cover. These new for old policies are increasingly popular, but they are not the cheapest.

Examine you policy

You should also check your policy includes things like accidental damage. Every policy document will show clearly what is covered. These documents are dreary to read through, but it is worth doing so, or you could find for the sake of a few minutes now that you have wasted your money when you come to claim in a few years time!

Going shopping

When you took out your mortgage you were probably offered buildings insurance. If you took advantage of that offer then you may be paying more than you need to. Although mortgage companies arrange bulk deals with insurers they don’t necessarily pass on all the savings to the consumer. A small fee will be payable if you opt out of the mortgage companies insurance package, but you will probably be able to find another insurer elsewhere which is much, much cheaper.

Shop around for the best deal, or better yet, get a broker to shop around for you. When you’re taking out contents insurance you can opt for a policy that simply works out your premiums based on the number of bedrooms you have. This will save you time otherwise you will be spending hours trying to calculate the value of all the contents in each room in the house.

Contents or buildings?

Whether something is covered under the contents policy or the buildings policy can sometimes cause worry and unnecessary stress when it comes to a claim.

The insurance ombudsman will often help settle any disputes, but broadly speaking contents insurance covers things that can be taken with you when you move house, including carpets, but buildings insurance covers fitted items like worktops and fitted wardrobes.

If you want to make sure everything is covered, especially for accidental damage, you may have to take out additional accidental cover on your buildings insurance as usually accidental damage by the house owner is not covered anywhere else.

Rummage and research

In short, when buying insurance for property it pays to shop around and it pays to pay someone such as a broker to shop around for you as long as you have given them all the details. Either way, there will be research to be done to find out what cover is available and to decide whether you want it or not.

More Information:

  • Contents And Buildings Insurance
    The place where you live is probably the most valuable thing you own. But it’s not just its financial value that is important, the likelihood is if you have lived in one place for some years that it will be full of things you have collected that have sentimental value too.
  • Association of British Insurers

Posted on: [ November 03, 2017 ]       Add to Del.icio.us   Digg it   Add to Blinklist   Add to FUrl   StumbleUpon