Insurance

All to often we speak with insurance consumers that don't fully understand the industry or the products that are available. Consumers understand deductibles and generally co insurance percentages if they have any and the rest is somewhat of a mystery.

We fully understand that insurance can be a confusing and frustrating experience and that's exactly why we've put this information into this website. To educate and give you non biased information on Homeowners Insurance. 

Home insurance breaks down into two distinct types:

1) buildings insurance

2) contents insurance.

You can buy a single policy that covers you for both, but it’s best to treat them as two separate policies: the cheapest insurer on the house might not be the cheapest for the contents.

Buildings insurance

This is often a condition of the lender giving you a mortgage so, in the event of a disaster, it can be repaired or rebuilt. If you don’t have buildings insurance and your house burns down, the lender will have no collateral for its loan, so will call it in. In which case, not only will you be homeless, but you’ll still owe the lender the value of the mortgage. Because so many lenders have suffered this, they now insist you provide proof the property is insured. The lender will ask you to cover the property for the rebuild cost, which should be noted in the survey. In most areas of the country this will be considerably less than the market value of the property. Most insurers cover you for the rebuild cost, although some will cover you for the market value. Check which one your policy will pay out on.

What it covers - as a matter of course, most buildings insurance policies cover the fabric of the building, including built-in kitchen units and bathroom suites, outbuildings, including sheds and garages, and any walls, gates or fences. These tend to be covered against damage or destruction caused by fire, storms, theft, vandalism, escaped water, flooding and subsidence.

Accidental damages - some also offer accidental damage as standard, but in most cases you will have to pay extra for this cover. This is the element that covers damage caused by, for example, drilling through a pipe. So if you plan to do any DIY on the property, it's well worth considering. The cost of adding on this type of cover will vary, as will the cost of the basic policy, as insurers base their premium calculations on a number of factors.

How much it costs - the main factors are the age of the property, postcode, age of policyholder, number of bedrooms and type of property. Generally, the cheapest type of property to insure is a semi-detached house. When you sign up for a mortgage the lender will ask you if you want to sign up for its buildings and contents cover. This is unlikely to be the cheapest cover.

Contents insurance

This cover is optional but it's not a good idea to skimp. In the 12 months before September 2002 there were 982,000 burglaries in England and Wales, and there are many other ways you can lose your possessions. Contents insurance covers the things that aren't part of the fabric of your home, such as furniture, electrical equipment and clothes. It also covers curtains, carpets and things in your garden, and most polices also cover the contents of your freezer. As with buildings insurance, most policies pay out in the event of a burglary, vandalism, fire, storm and flood, and premiums are calculated according to the type of property you own and its location. However, contents insurance is perhaps more complicated to buy than buildings cover because of the large number of items most people have in their homes and the wide range of scenarios covered by insurers.

Accidental damages - accidental damage cover is available on contents insurance policies. This will protect you against things like paint spillage and damage caused by pets, so it's a good idea to take it if you plan to redecorate or have a cat that loves to scratch furniture. Adding this cover usually costs extra, although some insurers include some level of cover as a matter of course.

Thus, your homeowners' policy can include:

• Guaranteed replacement cost on your home and its contents
• Various deductibles to fit your needs
• Increased limits for jewelry, fur, and other valuable items
• Personal liability protection

• Replacement cost available on your personal property
• Coverage for additions and alterations
• Coverage for Loss Assessment
• Personal liability protection

• Replacement cost available on your personal property
• Personal liability protection