Because insurance in all of its forms involves a regular cost to the policyholder, it can often go down on the long list of household bills which can be more or less concerning depending on someone’s circumstances. If somebody were to get the best deal possible from the outset, cover for the home can essentially take care of itself up until the time comes to renew a deal. In effect, with a little homework and by following some basic home insurance tips, somebody could make sure that this basic cost is as low as possible.
Unfortunately a lack of basic understanding can actually see somebody end up with a policy which in part is actually more than they need. For example, that term home insurance itself generally prefers to two basic types of cover – buildings insurance and contents insurance. In reality not everyone needs both, as people who are renting a property, for example, may not need protection for the building, but simply for their contents, or their general belongings. Likewise, somebody who owns a building but rents it out may not actually need contents insurance, or only a low level of it.
As such a home insurance policy may be completely unnecessary for somebody who is renting, if it includes protection for the building. People who are buying a home and are applying for a mortgage may often find that they are offered a Home Insurance plan by the bank or building society which is supplying them with the lending. This is because the vast majority of mortgage providers require that the applicant has a form of buildings insurance in place.
While taking this offer may seem sensible and convenient, in reality what the lender is offering you may be poor value compared to other standalone policies offered by independent cover companies. Remember that you’re entitled to turn down the offer of insurance which is made buy a home loan provider, it is wrong to assume that you will be refused lending if you reject their form of insurance.
Other home insurance tips include taking particular care over what is and what is not covered on any potential policy. While it’s true that most deals protect against fire, flood, and vandalism, plus theft in the case of contents, flooding in particular may be more expensive as an option depending on where the house itself is. Certain flood risk areas in the UK mean that getting protection for these homes is more expensive or almost impossible.
If you are putting buildings cover in place, it can be worth bearing in mind that you may be putting yourself at risk if you are looking to improve the home yourself. For example, some insurance companies will not pay for damage which is caused by DIY improvements, such as a botched home attempt at an extension, for example. If you are keen to do a fair amount of work on the house yourself, ensure that this will be covered – many companies require that whoever is carrying out the work is a qualified tradesman.
When it comes to contents, it is safe bet that significantly improving your home security can bring down your premium. Remember that insurance is essentially an industry which bases its costs on risk. You can reduce the risk or chance that your home is broken into, you may be able to reduce your insurance premium. Fitting a burglar alarm, installing a certain type of lock on the doors and fitting security lights are all home insurance tips which can potentially cut the cost of contents insurance.