Global Courant
Home and contents insurance can sometimes be overlooked as part of home financing. Building insurance for the structure of the building itself is normally a requirement for anyone with a mortgage. But once the mortgage is advanced and the lender’s requirement is met, many homeowners simply renew the same policy every year without a second thought. Likewise, most people recognize the value of insuring their home’s contents, but renew existing coverage every year almost as inertia. However, there can be much more to choosing the right home and contents insurance, which may give you much better coverage at a significantly better price.
Building insurance
The reason why this is considered a necessity by most people is because of the sheer value of the property, the cost of repairing it – or even having to rebuild it – if something goes wrong, and the wide range of risks each real estate subject. exposed. Think of fire, storm, lightning strike, flood, subsidence, vandalism, falling trees and branches and fallen satellite dishes and antennas. Home insurance claims can range from relatively small to so large that the entire property has to be rebuilt. For this reason, it is important to ensure that the home is insured for the full cost of reconstruction. Depending on the age and location of the property, this is not necessarily the value of the existing building, but the actual cost of building a new building on the same piece of land. The insurance valuation should also include a provision for loss or damage to related buildings and structures such as the garage(s), terraces, fences, swimming pools, paths and the like.
It is also important to keep in mind that circumstances change. A rebuild valuation in a year is likely to be different in a few years, so it may be worth reviewing home insurance to make sure it accurately reflects current valuations. Some policies include an automatic valuation increase in line with prevailing inflation, which can help keep home insurance up to date.
Contents insurance
The Center for Economic and Business Research carried out a study some time ago which suggested that the average home contained around £44,500 worth of assets, although in fact the average amount insured was only £35,000.
This highlights at least two interesting facts. The first is that the value of a home’s contents makes it well worth insuring against the usual risks of theft, loss or damage. The second is that most people apparently underestimate the contents and therefore underinsure. Such under-insurance can lead to huge disappointment in the event of a claim because of how insurance experts “average” the cost of replacing even one lost or damaged item against the total amount insured.
Choose home and contents insurance
A home and contents insurance therefore comprises considerably more than a one-off decision when moving to a new home for the first time. It’s important to regularly review the coverage level – and what you’re paying for it – to get the right deal at the best price.
Home insurance – Choose home and contents insurance
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