Ten Tips for buying Home and Contents Insurance

Considerations when looking for Home Insurance

1. Make sure you have a "new for old" policy.
If your personal possessions are damaged, lost or stolen, most home and contents insurance policies will replace the lost item with a new equivalent. This is called "new for old". For insured items that are hard, or impossible, to replace on a like for like basis - for example antiques or jewellery - the insurer will normally reimburse the value of the item. This means that you should get formal valuations of these items and ensure your policy is up dated to take into account any increased values.

2. Policys excess.
You can voluntarily pay more towards the cost of any claim. As this reduces the insurers risk, this will reduce the price of your premiums. But dont agree a policy excess thats too high. You may not be able to afford to claim!

3. How much cover do you have for accidental damage? (home insurance)

4. Do you need to insure your you familys bicycles?
A bicycles is one of the more regularly stolen items as they are so easy to transport! Therefore, many home insurance companies will ask you to pay extra premium to get them covered.

5. Are the contents of your freezer covered against power failure or breakdown?
Have you ever added up the value of the food in your freezer? Many of us would be surprised! The total value of the food in your freezer could easily add up to more than £200. Most policies include this cover automatically - but some charge extra. Check out that you have enough cover. If necessary, get it increased. (mortgage deals)

6. Do you have any business equipment at home?
Usually any business equipment you keep at home needs to be insured separately from your personal possessions. Business equipment, especially lap top computers can expensive to replace and some insurers treat this equipment as an additional risk.

7. What happens if the water main bursts on my property?
Some policies cover water main bursts whereas some treat it as an optional extra. Check your proposed policy. It would be useful for the policy to provide some level of emergency cover. Some insurers have teamed up with emergency call out firms which is a reassurance for their customers and can help keep the cost of claims down, especially if leaks are fixed quickly.

8. Is jewellery covered?
Jewellery claims can easily exceed the maximum claim value for individual possessions. Contents Insurance usually requires you to individually list all items whose value exceeds the policys maximum claim value. These can then be fully insured for an addition to the premium. (loan quotations)

9. Are you insured if you take some items abroad on holiday?
The answer varies between policies. You need to check this out before you buy. Many people rely on their home insurance when it comes to mishaps abroad, but you should consider carefully the benefits of a specific travel insurance policy.

10. Are discounts available for buying contents and buildings insurance from the same insurer?
You should always insure your home (building) and its contents on a combined Home and Contents policy. There are two good reasons: Youll get a much lower premium for buying together. Secondly, if everything is insured by one insurer, theres no scope for argument as to which insurance company pays for a claim. Consider for example, the sort of damage that a pipe burst in the loft space could cause: a collapsed ceilings, damage to fitted furniture, carpets, televisions and decorations etc. Theres far less hassle if you are claiming from one insurer. (cheap loan)