Householders Guide

Insurance

An Introduction to Home Insurance

An Introduction to Home Insurance

It’s likely that your home will be the most expensive purchase you’ll ever make. Who knows what horrible surprises lay in store? So If you’re a homeowner it makes more than sense to take out some form of insurance.

Home insurance is a general term used for two different types of insurance policies, which, in conjunction will give the homeowner complete protection. These policies are buildings insurance and contents insurance. Although they can be bought separately it may be more convenient and cost effective to buy both as a one joint policy.

Buildings Insurance

Buildings insurance will cover against damage and repairs to the structure of your home. This includes permanent fixtures and fittings like windows, doors, fitted kitchens and bathrooms. Each policy will differ from one insurer to another on what events you’ll be covered for, however you should be able to make a clam if you home has been damaged by:

  • Flooding, storms, falling trees
  • Fire, smoke damage and explosions
  • Vandalism
  • Collisions, for example by car, bus or lorry
  • Subsidence
  • Water damage form leaking pipes

Your policy may cover outside buildings like, sheds, greenhouses, garages or summer houses. Also other structures, like walls, fences, gates paths or drives.

You’ll need to check your policy very carefully as exclusions vary depending on the policy. These exclusions may include damage caused by:

  • General wear and tear
  • Frost, unless the damage is caused by a burst pipe
  • Pests, insects or birds
  • Leaking guttering
  • Storm damage to fencing

You can read more about buildings insurance in our article titled: A Guide to Buildings Insurance

Contents Insurance

Contents insurance covers for loss or damage to your personal belongs, for instance:

  • Furniture
  • Electrical goods and appliances
  • Clothing and jewellery
  • Clothing and jewellery
  • Cash and cheques

Every policy is different and will offer varying levels of cover. In general most policies will cover against:

  • Fire
  • Flooding
  • Storms
  • Theft
  • Vandalism

It’s important to fully understand the terms and conditions of the policy so you know exactly what exclusions are tied into a contents insurance policy, these exclusions should include:

  • General wear and tear
  • Structural damage
  • Negligence
  • Leaving the property unoccupied, normally for 30 consecutive days.
  • Corruption by software virus, to computers, laptops and other devices.

You can read more about contents insurance in our article titled: A Guide to Contents Insurance