Reducing the cost of your home insurance
There
are 4 parts to home insurance cover that you should
consider for your home, these are as follows:
-
Buildings insurance which covers the buildings
and fixtures and fittings e.g. bathroom suite
etc [guide]
-
Contents insurance which covers your possessions
within your home. You should ensure that the
limits on this part of the policy meet your
needs including any high risk items [guide]
-
Personal possessions cover provides cover for
items that you take outside of your home. Many
policies allow items up to a certain amount
to be covered but items over that need to be
specified
-
Legal protection provides cover for legal costs
should you need to pusue your rights as a home
owner
Levels of cover
There are three levels of cover that are generally on offer. These are:
-
Accidental damage
new for old - this covers your property for all of the normal risks such
as fire, flood and theft as well as any damage that is done by accident
to your property or contents e.g. spilling paint on carpet. Any items that
can't be fixed will be replaced with brand new items
-
New for old - this
will replace any insured items (if covered) with new. Often a
limited level of accidental damage cover is provided e.g. TVs, DVD players
and computers
-
Indemnity cover -
this is now thankfully rarely sold now as all this provides is the estimated
value at the time of loss in the event of an insured event. e.g. if you
TV was 5 years old and cost £700 you may only get back £25 for
it i.e. the second hand value of it. We suggest you might want to avoid this kind of policy as the level of cover could be considered as inferior.
How to save money
Buy online
Buy your home insurance online - many insurers
offer a discount if you buy online. This will mean that by buying online you will get a better price than
if you phone them.
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