A guide to insuring your property

As a homeowner, having the right level of insurance to protect you from unforeseen circumstances is always important. There are many different types of insurance you can get for your property, which often causes much confusion for homeowners. If you’re looking into getting insurance for your property, this guide will help you understand the insurance policies available.

Buildings insurance

Buildings insurance is by far the most important form of insurance a homeowner can have, as it covers the most expensive part – the structure of the building. If you consider that replacing a damaged wall or roof could set you back tens of thousands of pounds, having insurance to cover the damage can prove to be invaluable.

Buildings insurance can end up costing you an arm and a leg if you get the wrong level of cover. You should have enough insurance to cover the entire repair of your home. Many homeowners make the mistake of covering their home for the market value of their home, when in fact a rebuild would cost significantly less. It’s important that you get the right rebuild cost, which could mean asking a professional to calculate the figure for you. Because the rebuild cost will vary with time, its recommended that you have this figure re checked every few years to ensure that you’re insured to the correct level.

Also, if you own a flat, be aware that you are usually not responsible for buildings insurance. The freeholder – more often than not your landlord – has that task to fulfil. Speak to them or their managing agent about seeing an up-to-date policy.

Contents insurance

As the name suggest, contents insurance will cover the contents of your home. The value of your contents and the types of items you wish to ensure will determine the price of your insurance premium.

Reading the small print is always important with any insurance-policy as you will find that some insurers’ impose certain limits on high valued items, which you may need to insure with specialist insurers.

The average four-person family will have close to £50,000 worth of items, so being insured for the right amount is very important if you want to be properly protected. Calculating your level of cover will require you taking a detailed inventory of all your household items from electronics to clothing.

Most basic contents insurance policies won’t cover accidental damage so be sure to take out additional cover if you need it.

Landlords Insurance

If you intend on renting out your property, having landlords insurance alongside buildings insurance is highly recommended. Landlords insurance will normally cover the damage made to furnishings and fittings as well as more complex cover such as rent protection should your property be damaged and your tenants have to move out.

Another important feature of Landlords insurance is that many policies offer liability insurance, meaning should anyone be injured as a result of a problem with your property, your legal fees and any pay outs will be covered.

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