sbglobal2010
Rookie
WITH one in three of us likely to be burgled in our lifetime, and millions of properties at risk of flooding, home insurance should be regarded as a necessity. In fact, many mortgage lenders insist that you have building cover before they will lend you any money.
But with so many companies claiming to offer cheaper home insurance, how do you find the right policy? Times Money shows you how.
What kinds of home insurance are out there?
There are two main types, building and contents.
Building insurance - most mortgage lenders insist that you have building insurance before they offer a home loan. It protects the bricks and mortar of your property and permanent fixtures, such as fitted kitchens and bathrooms. It also covers outbuildings, such as garages, greenhouses and sheds, but boundary walls, fences, gates and driveways are not usually included.
All policies protect a home from fire and damage by someone other than the insured - a third party. Check whether it also covers storm and flood damage, burst pipes, water leakage and subsidence, as not all policies do.
Building insurance is based on the rebuilding cost of a property rather than its market value. Most policies will provide you with alternative accommodation should your home become uninhabitable.
Contents insurance - not compulsory but advisable. Contents insurance protects your possessions. That means anything from electronic goods, furniture and jewellery, to sports equipment and the food in your freezer. Increasingly, garden plants and tools are insurable too.
Like building insurance, contents insurance will cover you for fire and third party damage, as well as theft, but you should check that your policy will also pay out for damage caused by storms, flooding, frozen pipes and other leakages.
Some policies cover legal costs should you or someone else sustain injury in your home or if you have a dispute with your neighbour.
But with so many companies claiming to offer cheaper home insurance, how do you find the right policy? Times Money shows you how.
What kinds of home insurance are out there?
There are two main types, building and contents.
Building insurance - most mortgage lenders insist that you have building insurance before they offer a home loan. It protects the bricks and mortar of your property and permanent fixtures, such as fitted kitchens and bathrooms. It also covers outbuildings, such as garages, greenhouses and sheds, but boundary walls, fences, gates and driveways are not usually included.
All policies protect a home from fire and damage by someone other than the insured - a third party. Check whether it also covers storm and flood damage, burst pipes, water leakage and subsidence, as not all policies do.
Building insurance is based on the rebuilding cost of a property rather than its market value. Most policies will provide you with alternative accommodation should your home become uninhabitable.
Contents insurance - not compulsory but advisable. Contents insurance protects your possessions. That means anything from electronic goods, furniture and jewellery, to sports equipment and the food in your freezer. Increasingly, garden plants and tools are insurable too.
Like building insurance, contents insurance will cover you for fire and third party damage, as well as theft, but you should check that your policy will also pay out for damage caused by storms, flooding, frozen pipes and other leakages.
Some policies cover legal costs should you or someone else sustain injury in your home or if you have a dispute with your neighbour.