Insurance all home owners need…

1. Shop around on the internet: Many house insurers specialise in insuring different types of risk. Know what you want to buy and don’t be misled by optional extras that you don’t need. By shopping around you can significantly improve your chances of finding the right product at a suitable price. Use the Tiscali Insurancewide.com HouseWizard to find the most suitable and RELEVANT insurer. Price is not the only factor to consider. Relevance and previous success rates with your type of risk are important too.
2. Buy home insurance online: Some home insurance companies offer discounts if you buy your insurance online, though it’s not necessarily always cheaper.
3. Security: Make sure you have the right security locks fitted, such as a mortice deadlock or rimlock conforming to British Standard 3621. You should also install a NACOSS approved burglar alarm and join a neighbourhood watch scheme. Increased security measures can lead to a 5-10% discount on your policy.
4. Payment: Consider paying your house insurance premium annually rather than monthly. Some insurers charge a high APR on monthly instalments.
5. Keep your sum insured up to date: If you fail to inform your insurer of any new purchases or home improvements they may refuse to pay out in the event of a claim, leaving you to foot the bill.
6. Know the difference between buildings cover and contents cover: The correct level of buildings cover should cover the full cost of rebuilding the property, not the market value. Building insurance is a legal requirement if you have a mortgage but beware, contents cover is optional, not everyone has it and many of those who do are under-insuring their homes as the contents increase in value year on year. Contents insurance should cover all possessions inside your home.
7. Avoid living in an area at risk of flooding or subsidence: If you live in a known flooding or subsidence area you will have limited insurance options. The best advice from the industry is stay with your current insurer and not to be drawn by the lure of different prices or schemes from other insurers. House insurance problems are not usually experienced by an existing owner; the hitch comes when a house is sold and the new owner tries to secure insurance. Ask the current owner about any problems they encountered when insuring the property and ask for the name of the insurance company they used, to ensure the most appropriate cover.
8. Check policy exclusions: A cheaper policy may be unsuitable because it may have several exclusions. House insurance does not provide cover for every eventuality. Read the small print to ensure you are fully insured for your needs. Know your contents value and be aware of individual item limits included in the standard policy. If you require additional cover this can usually be added for an extra cost.
9. ‘New for Old’ cover: This is also known as ‘replacement as new’ cover and means the insurer will pay out for the price it would cost to buy the items new. Most insurers will not provide ‘new for old’ cover on clothing, household linen, bicycles and audio/visual and computer equipment over five years old that has been damaged accidentally. For these items, a deduction is made for wear, tear and depreciation. In addition, deductions are made if items are not replaced or the sum insured does not represent the full cost of replacing the property insured.
10. Check the single item limit: Most insurers will pay up to a maximum of £1,500 but this limit does vary depending on the insurer. Always inform your insurance company of any expensive individual items you wish to include on your policy. It may be necessary to pay a higher premium or take out a separate policy. These options are often worth it to protect your most valuable possessions.