You’re finally ready to undertake home insurance quote comparison and save on your policy Well, there is nothing wrong with that since you are protecting one of your most important investments. Similar to any other policy you take up, it’s essential that you understand what is destined to come your way before signing on the dotted line.
In a nutshell, how insurance covers loss and damage to your house and household contents. For instance, if your home is damaged by an insured even like a fire or flood, your home insurance policy may cover the cost of any repairs or replacements needed.
Home insurance is available in two parts i.e., buildings insurance and contents insurance. You are free to buy them individually or together as a combined policy. Building insurance covers the structure of the property and its permanent fixtures and fittings.
Things tend to be somewhat different with contents insurance as it covers your household items like furniture, electricals, clothing and jewelry. If it is something you’d take with you when you moved house it’s classed as contents.
But do you really need home insurance? Legally, you don’t need home insurance, but it is always a good idea to have some form of protection in place. Think about whether you could afford to replace your home or possessions if the worst happened.
If you have a mortgage, your mortgage provider will surely insist on you taking out building insurance as a condition of the loan. You don’t have to take out insurance if you own your home outright. However, if you home was damaged by floods or fire for example, you’d have to find the money for repairs yourself.
Opting to insure your belongings is a more personal decision. Again, you’d have to find the money to replace your things in the event something happens and you don’t have contents insurance with you. If you rent your property, you won’t need buildings insurance- that’s the responsibility of your landlord.
Be sure to factor in the above things before kickstarting your home insurance quote comparison expedition.