Home Insurance Policy Types

If you asked for an insurance policy 50 years ago, you didn’t many options to choose from, as everything was way simpler back then.

Nowadays, insurers can be found nearly anywhere and they offer such a vast array of options, that it can be quite hard for the average consumer to make a decision without consulting with his lawyer or financial advisor first.

Your home, either bought or built, is one of your most precious assets and hence it should get a comprehensive home insurance cover.

Most home insurance companies have divided their policies into different categories and it’s of paramount importance that you understand which policy is best for your specific needs and those of your loved ones.

Buildings Insurance

This covers the structure of your property. Whether you are repaying your mortgage or are about to apply for one, you are advised to buy this insurance.Just so you know, if you decide to go for a bank’s buildings insurance policy, it is highly likely that the bank will offer you up to £500.000, 00 coverage and, since it’s your home we are talking about, you are strongly recommended to buy your insurance policy from a well-known bank, such as Barclays.

Home Contents Insurance

I’ve always wondered if the contents of a home can be more valuable than the property itself. I guess one day I’ll have to take inventory and find out the truth by myself.

So should one who intends to buy this type of insurance. The contents of your home can be destroyed by fire or water or even stolen and so it’s important that you insure them.

If one has a valuable antique or heirloom, its imperative that the insurer is informed as they might need to be insured separately.

Buildings and Contests Insurance

This type covers both your home structure and contents and one should make sure that the cover is satisfactory for the both. This type of insurance is also cheaper.

Tenants Home Insurance

Cases where the landlord and the tenant have to decide who to compensate the other in case of a stolen item in the tenant’s house are many.

For example, the tenant’s PC could break down due to an electric fault or his woofer could be stolen. Most of the times, the landlord ends up being not responsible, as the law usually protects landlords, unless the tenant presents a very strong line of argument.  The tenant should therefore buy the contents insurance premium to secure his valuables.

Student’s Home Insurance

Generally, students have very valuable gadgets that necessitate them being insured separately. These gadgets include iPods, iPads, home theaters, PCs, and game consoles. The content insurance can be of benefit to them but since most live in a share accommodation, separate insurance would suit them.

Before you buy a home insurance policy, you should ask to be guided through the various types and then make a wise choice on which cover is best. Gone are the days when one did not have a way of protecting his property.

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