Home insurance = peace of mind
Your home is your castle and everything within it your crown jewels, but since you probably don’t have a troop of beefeaters to stand guard, it’s a good idea to opt for some home insurance.
Adequate home cover will afford you peace of mind so that if your home is damaged or destroyed it will be repaired or rebuilt, or if your possessions are damaged or stolen you will be compensated.
To help clarify all things Home Insurance, we’ve put together this helpful guide: from the different types of home insurance to top tips on reducing your premiums – plus some handy hints on burglar-proofing your home.
But first, some home insurance food for thought:
- According to Home Office figures, England and Wales have among the highest burglary rates in the world, with a burglary taking place every 20 seconds.
- Around 25% of households have no contents cover, which means that residents of around six million homes have no one to turn to if their possessions are lost or ruined as a result of fire, storms, burglary or flood.*
- Less than 65% of households have buildings insurance, leaving the remainder exposed to huge bills in the event of property damage.*
*Source – National Statistics Office, 2006
Know your buildings from your contents insurance
Home Insurance breaks down into two types: Buildings Insurance and Contents Insurance.
If you rent a property you only need to worry about contents cover. If you own a property, you’ll probably be required to have buildings insurance as a mortgage condition, whereas contents cover is voluntary, as it is only you who will lose out in the even of theft or breakage.
A good rule-of-thumb for telling the difference between buildings and contents insurance is to imagine you’re a giant and able to pick up the house in your hand. Now turn the house upside down and give it a shake. Everything that remains in place (walls, doors, bath, sinks etc) is covered by buildings insurance while everything that falls to the ceiling (television, bed, sofa etc.) is covered by contents insurance.