There are lots of different kinds of home insurance on the market, but you might not need all of them. Getting a policy that covers more than you need can be expensive, so it’s best to identify your needs before signing on the dotted line. Here are some of the types of home insurance you might need and why:
If you’re planning to buy your own home, you may have to take out buildings insurance as a condition of your mortgage. However, even if your lender doesn’t require you to do this, it can still be a wise decision. Buildings insurance essentially covers any structural damage that might occur as a result of floods, fires and vandalism. If you’re a renter, you won’t need this because the structure of your home is your landlord’s responsibility to maintain, but homeowners may be faced with hefty bills if a storm puts a big hole in their roof.
Suitable for both renters and homeowners, contents insurance is all about making sure that the things you own are protected. Whether you’re worried about theft or a rogue leak destroying your book collection, contents insurance helps you to replace items that have been stolen or damaged. You can choose the value that your contents insurance will go up to, but for valuable items and gadgets, you may have to take out a separate cover. General contents insurance policies are designed to cover your furniture and general belongings that may be destroyed in a fire for example, but will exclude computers and gaming consoles. Some policies allow you to insure a few gadgets for a small extra cost, so make sure you compare home insurance to find a deal that works on all levels for your lifestyle.
This type of home insurance is only needed if you’re renting out your home. It’s not essential, but it’s a very good idea as it can protect you should your tenant become injured as a result of something in the property where they live. For example, if a faulty socket gives them an electric shock, they may be able to take you to court where you could be liable to pay a hefty sum. You could even get a landlord insurance policy that will cover you if your tenant misses rent payments, but you can expect to pay a higher premium for this type of coverage.
Holiday home insurance
Do you have a small cottage or beach house that you only use for the occasional holiday? A regular home insurance policy probably won’t be quite right for your needs as your home is empty most of the time. Empty properties can be more at risk of being burgled or vandalised, not to mention damages that aren’t noticed for some time. Your holiday home will be considered an empty property when it’s unoccupied for over 30 days, so unless you have friends and family staying there on and off throughout the year, you’ll need to find a special policy.
Home insurance can really help you have peace of mind, whether you own your property or are merely renting it. Whether it’s a natural disaster or burglary that makes your life more difficult, the right policy can ease your stresses and make recovery a much easier process.