Home insurance claims are a frustrating thing. From the moment you realise that your home has been damaged due to theft, fire, flood, water, storm or impact damage. To the possibility of finding out that you don’t have the enough cover to carry out adequate remedial repairs.
Finding that your home insurance doesn’t provide the cover you thought it did it is more common than many people think. And it could happen to you if you are not 100% certain of what is and what is not covered under your current policy.
The first step to ensuring you are covered is understanding the different types of home insurance available to you.
Buildings insurance protects the bricks and mortar of your home, as well as any fixed features such as kitchens or bathrooms. It also extends to protecting your roof, and sometimes even outdoors buildings such as garages and greenhouses. Buildings insurance does not include some exterior features that are not connected to your home, such as fences or surrounding walls.
When you buy building insurance, you need to ensure that you are covered for an entire re-build of your property. This does not just include building a new home, as there are other factors to add in such as the demolition costs or paying professional fees for solicitors or architects. It is also important to remember that the cost to re-build your home is not the same as the market value of your home (i.e. the amount you would receive if you were to sell it). Re-build costs are typically lower than market value.
As many homes are extended or improved over time, it’s always a good idea to schedule regular reviews of your building insurance to make sure any modifications and additions are taken into account.
Contents insurance is cover for your personal belongings contained within your home. It provides financial protection for damage or theft to your contents, including such things as your clothes and furniture.
Unfortunately, the amount of possessions you own can add up to a serious bill for your insurance company if any of it was ever damaged. It is important that your contents policy covers the worth of all your possessions, or you could end up under insured and out of pocket in the event of a claim.
The best way to effectively value the possessions in your home is to go from room to room and make a note of all the contents in them. Give each item an estimated value so that the contents cover can be revised accordingly.
It is important to ensure that you have both kinds of home insurance, but there are a few more things to think about when you are buying a home insurance policy.
New For Old Contents Insurance
In the event of a contents insurance claim, it is usually arranged on a ‘new for old’ basis. It means that if your sofa was damaged by a fire, your insurance will pay the value of the sofa when it was first purchased.
This is not true for all contents insurance policies, as some policies take into account any wear and tear that your possessions may take on during its product life cycle. In cases like this, your insurance company will pay out the products current value, not the value of the product when it was originally purchased.
New for old content insurance policies tend to be cheaper, but may leave you out of pocket should you wish to replace an item like for like.
High Value Home Insurance
High value home insurance is the same as a standard home insurance policy, but ensures that your home is protected if it worth a high value. High value home insurance can cover both building and contents insurance. The general rule of thumb regarding a property of high value, is one that would cost over £500,000 to re-build. High value contents generally include works of fine art, antique’s, jewellery.
High value home insurance is necessary if your possessions are worth a great deal because most standard home insurance policies come with a single item value limit. This is the highest amount an insurer will pay out for a single item. An example includes a ring worth £2000 being stolen, and a standard insurance policy having a single item value limit of £1500. If you claim for this ring, you will be out of pocket by £500.
Non-Standard Home Insurance
This insurance provides cover for homes built with different materials (e.g. a thatched roof or timber frame). Or character homes with a different or strange shape, and a fantastic aesthetic.
Unfortunately, insuring a non-standard home home is a risk for big name insurers. To ensure your home and belongings are covered, you will need to seek specialist insurance that only cater to non-standard housing.
These are just a few examples of the types of home insurance that you may need. Unfortunately, it is not always clear whether or not your insurance covers every possible problem that may arise.
If you wish to know if you are covered for certain situations, or how much you are covered for in the event of a problem, then you should always phone your insurance company to ask them. This can be the difference between being out of pocket or staying on your feet in a time of crisis.
If you are have suffered damage to your home and are in the process of making a claim for building repair works, speak to us here at Tangible for help and advice. We’ve helped many homeowners with buildings insurance claims repair and reinstatement work to their complete satisfaction. Call us on 0800 328 4188.