Low cost home owners insurance. Is there such a thing? It seems easy enough to find plenty, if not hundreds, of companies offering cheap house insurance.
Just browse the internet and you will see just what I mean. I did an internet search and the search engine returned over 2.5 million results. Many companies were offering the cheapest quote, free gifts, unbeatable prices, the lowest quote? You name it and it is on offer.
But what about the insurance?
Like most things in life, you get what you pay for! But there are some good deals to be had if you are patient and have the time to put in the research. The main things to look out for are the different areas of cover offered by different insurers. Home buildings insurance can be an absolute maze to fight your way through if you do not plan.
The best way that I find to do things is to set up a comparative analysis of each insurer's benefits. Sounds complicated? Not really. If you are reading this article, it's a good bet that you have access to a computer. That would suggest that you also have access to a spreadsheet programme such as Excel. In your spreadsheet, all you need to do is to list the benefits down the left hand column and then at the top of the sheet head each column with the name of the insurer. Then just tick off each of the benefits offered for each policy. You can immediately see who offers what and if policy benefits are similar. If you put the cost of each policy at the bottom of each insurer's column you will be able to make a sensible cost comparison and see which company offers true cheap house insurance.
In addition to the structure, a buildings policy covers permanent fixtures and fittings such as baths and toilets, fitted kitchens and bedroom cupboards. Interior decorations are also covered. Policies will usually include outbuildings such as garages, greenhouses and garden sheds. Boundary walls, fences, gates, paths, drives and swimming pools may not be covered - always check the policy if you need cover for these areas and include them on your tick chart (comparative analysis chart).
Most house insurance policies cover damage to your home by:
- Aircraft or things falling from them.
- Subsidence, heave and landslip.
- Falling trees or branches.
- Impact by vehicles or animals.
- Breakage or collapse of aerials.
- Riot and malicious persons.
- Escape of water from tanks or pipes.
- Storm and flood.
Many insurers? home buildings insurance policies have additional extensions of cover. These may be:
- Alternative Accommodation - If your home is so badly damaged that you cannot live in it until repairs are completed, your policy will help to meet the reasonable cost of alternative accommodation up to a stated limit.
- Third Party Liability - If, as owner of your home you are responsible for any injury to someone or for damage to their property your policy will pay the damages and cost for which you are legally liable. There is usually an upper limit of 1 million or more in the UK.
- Underground Pipes and Cables - Supplying gas, electricity, oil or water, as well as sewage pipes, are normally insured against accidental damage. They will not be insured against normal wear and tear.
- Glass - In doors, windows and skylights are normally covered against breakage along with baths, washbasins and WCs.
This said, your main legal liability will arise from you being occupier of your home and a contents policy covers this. All you can do to find truly cheap home insurance is to do your homework and minimise the risk by knowing what you are getting for your money.
Remember! You tend to get what you pay for in life and this includes home buildings insurance!