Whether you are considering buying a house to make into your brand-new home, or are looking to renovate an existing property, it is vital that you have the right insurance policies in place in order to ensure that you are covered in the event that something goes wrong.
With so many property and building insurance options to choose from, it can sometimes be difficult to know which type of policy of insurance to opt for. Some of the most popular insurance policies available and what they entail may not always be suitable.
Therefore, knowing the key differences and similarities between policies is crucial. Although buildings, property and contents insurance are some of the most popular policies pertaining to property, there are nuances to be considered in each case as well as specific policies that differ from the mainstream types of policies.
Buildings Insurance Policies
This kind of insurance is taken out to protect the structure and integrity of your property and whilst not necessarily a legal obligation in the same way as things such as sound testing is, you will find that if you are looking to take out a mortgage, lenders will require you to take out this kind of cover before considering their acceptance of your application.
This kind of insurance also covers you for many permanent fixtures that you have in the property in question; such as fittings in the kitchen, bathroom and even roof. Depending on the policy cover that you take out, it can also extend to some outdoor buildings such as sheds, greenhouses, fences, and walls.
It is very important to remember when it comes to buildings insurance, that a large number of people manage to miscalculate how much they should be paying when it comes to their specific insurance policy, due to getting the rebuild cost of a property wrong. This is why it may well be worth using an online buildings insurance calculator before applying.
This will help to ensure you are paying the right amount on your policy. It may also prove worthwhile to consider your options using price comparison websites to ensure you are getting the best deal.
Contents Insurance Policies Explained
Taking out a contents insurance policy is not mandatory but is well worth considering, as it protects belongings that you have in a property in the event of potential damage due to theft, fire or floods.
Without this kind of insurance, loss, fire and damage could end up costing potentially many thousands of pounds to replace out of your own pocket, so taking care of things such as fire safety are also important.
Contents insurance is not a legal obligation, but it can cover you for a large number of belongings (whether it be a stolen, a room full of furniture that has been burnt down or even flooding and clothing.) Also, if you live in area or property which is been deemed to be at risk of flooding in its Flood Risk Assessment, contents insurance may be a very wise move should the worst occur.
Calculating Your Costs
Another thing to remember is that there can be problems when it comes to properly calculating the precise amount you should be paying for the policy itself and this can be difficult, given that it can be covering a large number of belongings in your property. As with buildings insurance policies, contents insurance calculators can be particularly helpful, helping to ensure that you don’t miss out on any items when getting your quote.
High Value Home Insurance
High-value home insurance may be worth considering if you have items that are worth a considerable amount of money such as jewellery, fine art, antiques as well as other high value items. This type of insurance may also be pertinent if you have bought a property that would cost at least £500,000 to rebuild altogether.
High cost values will not always be included in the quote you receive from a mainstream policy provider when it comes to buildings and contents, meaning you may only be able to claim for a partial amount or in certain cases, not at all. High-value home insurance therefore affords you an additional layer of protection.
Holiday Home Insurance
Interestingly and importantly, holiday homes are not usually covered by the standard home insurance policy which you may have already taken out. This is because second homes can often be left vacant for far longer periods of time, making them much more susceptible to damage and burglaries.
In order to ensure you don’t lose out on a considerable amount of money in the event that a worst-case scenario occurs, consider purchasing specific holiday home cover. It is important to note that you should always make it clear with insurers that this type of property is not your main home. You may do it thinking you can cut down on costs, but it could end up working against you in the future if you end up getting found out, and you may consequently lose money as insurers might declare future claims made as void.
If you possess a buy-to-let property that you rent out to tenants, you should consider purchasing landlord’s insurance. As a landlord you have the responsibility for the upkeep and general maintenance of the property in question and a standard buildings insurance policy will not tend to cover you if you are not living in the property which you have insured.
This is where specifically tailored landlord’s insurance comes in handy, with many policies also including additional components such as public liability insurances and potential loss of rent.
Listed Buildings Insurance Policies
If you live in or are in possession of a property in the UK that is Grade I, Grade II or Grade III, you will find that there are certain restrictions in place. When it comes to listed buildings, perhaps due to factors such as its cultural significance or due to the property being of historic importance, altering and working on these properties is restrictive.
Consequently, these things can end up making any reparations that you need to make considerably more expensive, needing to be done by professionals who understand these constraints. Having listed buildings insurance can be particularly helpful as it takes into account the additional costs that you would have to pay in the event of needing to make repairs, making the process of undertaking repairs and similar work more straightforward.